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Are Immigrants Buying to Get In?: The Role of Ethnic Clustering on the Homeownership Propensities of 12 Toronto Immigrant Groups, 1996-2001

  • Haan, Michael
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    Numerous studies equate immigrant homeownership with assimilation into the residential mainstream, though only rarely is this claim verified by studying the ethnic character of neighbourhoods where immigrants actually buy homes. In this paper, the 1996 and 2001 Census of Canada master files and bivariate probit models with sample selection corrections (a.k.a. Heckman probit models) are used to assess the neighbourhood-level ethnic determinants of homeownership in Toronto, Canada. By determining whether low levels of ethnic concentration accompany a home purchase, it can be assessed whether immigrants exit their enclaves in search of a home in the 'promised land', as traditional assimilation theory suggests, or if some now seek homes in the 'ethnic communities' that Logan, Alba and Zhang (2002) recently introduced in the American Sociological Review. Assessing the role of concentration under equilibrium conditions, evidence emerges that same-group concentration affects the propensity of several group members to buy homes.

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    Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2005252e.

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    Date of creation: 26 May 2005
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    Handle: RePEc:stc:stcp3e:2005252e
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    1. Hou, Feng & Picot, Garnett, 2003. "Visible Minority Neighbourhood Enclaves and Labour Market Outcomes of Immigrants," Analytical Studies Branch Research Paper Series 2003204e, Statistics Canada, Analytical Studies Branch.
    2. Goodman, Allen C., 2002. "Estimating Equilibrium Housing Demand for "Stayers"," Journal of Urban Economics, Elsevier, vol. 51(1), pages 1-24, January.
    3. George J. Borjas, 2002. "Homeownership in the Immigrant Population," NBER Working Papers 8945, National Bureau of Economic Research, Inc.
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