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Determinants of Immigrant Homeownership: Examining their Changing Role during the Great Recession and Beyond

  • Mundra, Kusum

    ()

    (Rutgers University)

  • Uwaifo Oyelere, Ruth

    ()

    (Emory University)

The Great Recession had significant economic effects both in the U.S. and around the world. There is evidence that homeownership rates declined during this period, though some immigrants were less severely affected compared to natives. In this paper we investigate the role of several factors in reducing the vulnerability of immigrants in the face of the economic crisis and increasing the probability of their homeownership. Specifically we examine to what extent birthplace networks, savings, length of stay in the U.S., and citizenship status affect the probability of homeownership before the recession and to what extent these impacts have changed since the recession. Using data from Current Population Survey for the years 2000 – 2012 our results suggest that birthplace networks have a significant effect on homeownership and this effect further increases after the onset of recession. Moreover the impact of birthplace network on homeownership is stronger for citizens and those who are not recent immigrants. We also find a decline in the impact of saving and length of stay on the probability of homeownership during 2007-2012 compared to earlier years. In contrast we find an increase in the impact of being a citizen on immigrant homeownership during this period.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7468.

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Length: 49 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7468
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  1. Hilber, Christian A.L. & Liu, Yingchun, 2008. "Explaining the black-white homeownership gap: The role of own wealth, parental externalities and locational preferences," Journal of Housing Economics, Elsevier, vol. 17(2), pages 152-174, June.
  2. Eileen Diaz McConnell & Enrico A. Marcelli, 2007. "Buying into the American Dream? Mexican Immigrants, Legal Status, and Homeownership in Los Angeles County," Social Science Quarterly, Southwestern Social Science Association, vol. 88(1), pages 199-221.
  3. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  4. Christopher J. Mayer & Karen M. Pence & Shane M. Sherlund, 2008. "The rise in mortgage defaults," Finance and Economics Discussion Series 2008-59, Board of Governors of the Federal Reserve System (U.S.).
  5. Suhas L. Ketkar & Manoj K. Dora, 2011. "Wealth of recent immigrants to the USA," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 4(4), pages 330-344.
  6. Eiji Yamamura, 2011. "How Do Neighbors Influence Investment in Social Capital? Homeownership and Length of Residence," International Advances in Economic Research, International Atlantic Economic Society, vol. 17(4), pages 451-464, November.
  7. George J. Borjas, 2002. "Homeownership in the Immigrant Population," NBER Working Papers 8945, National Bureau of Economic Research, Inc.
  8. Marsha J. Courchane & Brian J. Surette & Peter M. Zorn, 2004. "Subprime Borrowers: Mortgage Transitions and Outcomes," The Journal of Real Estate Finance and Economics, Springer, vol. 29(4), pages 365-392, December.
  9. Ashoka Mody & Franziska Ohnsorge & Damiano Sandri, 2012. "Precautionary Savings in the Great Recession," IMF Economic Review, Palgrave Macmillan, vol. 60(1), pages 114-138, April.
  10. Daglish, Toby, 2009. "What motivates a subprime borrower to default?," Journal of Banking & Finance, Elsevier, vol. 33(4), pages 681-693, April.
  11. Catalina Amuedo-Dorantes & Kusum Mundra, 2013. "Immigrant Homeownership and Immigration Status: Evidence from Spain," CReAM Discussion Paper Series 1301, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  12. Sarah Bohn & Sarah Pearlman, 2013. "Ethnic Concentration and Bank Use in Immigrant Communities," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 864-885, April.
  13. Belton, Willie & Uwaifo Oyelere, Ruth, 2008. "The Racial Saving Gap Enigma: Unraveling the Role of Institutions," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 37089, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Mundra, Kusum, 2013. "Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey," IZA Discussion Papers 7131, Institute for the Study of Labor (IZA).
  15. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer, vol. 20(3), pages 495-526, July.
  16. Bocian, Debbie Gruenstein & Ernst, Keith S. & Li, Wei, 2008. "Race, ethnicity and subprime home loan pricing," Journal of Economics and Business, Elsevier, vol. 60(1-2), pages 110-124.
  17. Nothaft, Frank E. & Perry, Vanessa G., 2002. "Do mortgage rates vary by neighborhood? Implications for loan pricing and redlining," Journal of Housing Economics, Elsevier, vol. 11(3), pages 244-265, September.
  18. 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.
  19. Catalina Amuedo-Dorantes & Kusum Mundra, 2005. "Social Networks and Their Impact on the Employment and Earnings of Mexican Immigrants," Labor and Demography 0502001, EconWPA.
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