March 11th, 2013
Foreign-born individuals are expected to participate in the U.S. housing market at greater levels, and contribute to the steady pace of recovery.
According to a recent study conducted by the Mortgage Bankers Association, the demand for homeownership and rental units among foreign-born households will increase steadily as more foreign workers, students and entrepreneurs settle for longer periods in the U.S. The study found that the number of foreign-born homeowners increased from 2.1 million between 1990–2000 to 2.4 million added in 2000-2010. The number of foreign-born households existing between 2010 and 2020 is expected to rise to 2.8 million.
“Growth in housing demand in recent decades has been more stable among foreign-born than native-born households,” said professor Dowell Myers of the Population Dynamics Research Group at the University of Southern California. “This is because increases in native-born demand have been subject to large swings in the size of cohorts reaching ages 25 to 34, the most common age of entry to the housing market. In contrast, inflows of new immigrants have not varied widely in recent decades, and in addition the strong upward mobility of prior immigrants, has led to continued increases in aggregate demand for homeownership.”
Analysts note that these statistics may be helpful for mortgage service companies, builders, lenders and remodeling agencies as they seek out new ways to market their services to potential buyers.