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

Author

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  • Mundra, Kusum

    () (Rutgers University)

  • Uwaifo Oyelere, Ruth

    () (Agnes Scott College)

Abstract

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.

Suggested Citation

  • Mundra, Kusum & Uwaifo Oyelere, Ruth, 2013. "Determinants of Immigrant Homeownership: Examining their Changing Role during the Great Recession and Beyond," IZA Discussion Papers 7468, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7468
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    References listed on IDEAS

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    1. Catalina Amuedo-Dorantes & Kusum Mundra, 2013. "Immigrant Homeownership and Immigration Status: Evidence from Spain," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 204-218, May.
    2. Ashoka Mody & Franziska Ohnsorge & Damiano Sandri, 2012. "Precautionary Savings in the Great Recession," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 60(1), pages 114-138, April.
    3. Eiji Yamamura, 2011. "How Do Neighbors Influence Investment in Social Capital? Homeownership and Length of Residence," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 451-464, November.
    4. 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.
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    6. Mundra, Kusum, 2013. "Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey," IZA Discussion Papers 7131, Institute of Labor Economics (IZA).
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    18. Catalina Amuedo-Dorantes & Kusum Mundra, 2005. "Social Networks and Their Impact on the Employment and Earnings of Mexican Immigrants," Labor and Demography 0502001, University Library of Munich, Germany.
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    Cited by:

    1. Mundra, Kusum & Rios-Avila, Fernando, 2016. "Immigrant Birthcountry Networks and Unemployment Duration: Evidence around the Great Recession," IZA Discussion Papers 10233, Institute of Labor Economics (IZA).
    2. Chakrabarty, Durba & Osei, Michael J. & Winters, John V. & Zhao, Danyang, 2017. "Are Immigrant and Minority Homeownership Rates Gaining Ground in the US?," IZA Discussion Papers 10852, Institute of Labor Economics (IZA).
    3. Mundra, Kusum & Uwaifo Oyelere, Ruth, 2016. "Single and Investing: Homeownership Trends among the Never Married," IZA Discussion Papers 9935, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Great Recession; home ownership; birthplace networks; savings; years in the U.S.; citizenship status;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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