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Tenure choice with location selection: the case of Hispanic neighborhoods in Chicago

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  • Maude Toussaint-Comeau
  • Sherrie L.W. Rhine
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    Abstract

    A notable feature of immigration into the U.S. is the high degree of spatial concentration of different immigrant groups. We ask the question whether residing in areas with a large proportion of a co-ethnic group influence the decision to own a home for Hispanics in the Chicago Metropolitan area. The results show that Hispanics choose to live in Hispanic enclaves based on relatively homogeneous characteristics such as recent migration, less English language fluency, and lower income. More years in the U.S., higher education attainment and English language fluency remain strong predictors of homeownership. Individuals are less likely to be homeowners in communities with a larger co-ethnic concentration, foreign-born residents, or lower-income

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    Paper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-03-05.

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    Date of creation: 2003
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    Handle: RePEc:fip:fedhwp:wp-03-05

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    Keywords: Immigrants ; Income ; Mortgage loans;

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    1. Chiswick, Barry R. & Miller, Paul W., 2002. "Do Enclaves Matter in Immigrant Adjustment?," IZA Discussion Papers 449, Institute for the Study of Labor (IZA).
    2. Goodman, Allen C., 1990. "Demographics of individual housing demand," Regional Science and Urban Economics, Elsevier, vol. 20(1), pages 83-102, June.
    3. Yongheng Deng & Stephen L. Ross & Susan M. Wachter, 2002. "Racial Differences in Homeownership: The Effect of Residential Location," Working papers 2002-05, University of Connecticut, Department of Economics.
    4. Borjas, George J., 2002. "Homeownership in the immigrant population," Journal of Urban Economics, Elsevier, vol. 52(3), pages 448-476, November.
    5. Goodman, Allen C. & Kawai, Masahiro, 1982. "Permanent income, hedonic prices, and demand for housing: New evidence," Journal of Urban Economics, Elsevier, vol. 12(2), pages 214-237, September.
    6. Gyourko, Joseph & Linneman, Peter, 1996. "Analysis of the Changing Influences on Traditional Households' Ownership Patterns," Journal of Urban Economics, Elsevier, vol. 39(3), pages 318-341, May.
    7. Boehm, Thomas P & Herzog, Henry W, Jr & Schlottmann, Alan M, 1991. "Intra-urban Mobility, Migration, and Tenure Choice," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 59-68, February.
    8. David M. Cutler & Edward L. Glaeser, 1995. "Are Ghettos Good or Bad?," NBER Working Papers 5163, National Bureau of Economic Research, Inc.
    9. Coulson, N. Edward, 1999. "Why Are Hispanic- and Asian-American Homeownership Rates So Low?: Immigration and Other Factors," Journal of Urban Economics, Elsevier, vol. 45(2), pages 209-227, March.
    10. Kan, Kamhon, 2000. "Dynamic Modeling of Housing Tenure Choice," Journal of Urban Economics, Elsevier, vol. 48(1), pages 46-69, July.
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