Homeownership and rental demand of foreign-born households will continue to increase as growing numbers of immigrants settle longer in the U.S., according to a new report sponsored by the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA).
According to the report, entitled ‘Immigrant Contributions to Housing Demand in the United States: A Comparison of Recent Decades and Projections to 2020 for the States and Nation,’ the volume of growth in foreign-born homeowners has increased each decade since the 1980s and is projected to rise further to 2.8 million in growth in the current decade. Foreign-born ownership demand comprises the majority of all growth in homeownership in California and New York – 88.2% and 65.1%, respectively – and accounts for the major share of net growth in owner households in Illinois, New Jersey, Pennsylvania, Massachusetts, Ohio and Michigan.
By 2020, foreign-born ownership demand is projected to remain a majority of the growth in six states: California, New York, New Jersey, Massachusetts, Connecticut and Michigan.
‘As the housing market continues its recovery, it is important to understand the demographic trends which are likely to impact housing demand in the years ahead,’ says Michael Fratantoni, RIHA's executive director. ‘This study provides information for lenders, builders and policymakers regarding the future shape of housing demand, which the authors clearly show will be substantially impacted by the housing choices of foreign-born households, whether they are renters or homeowners.’
The report is now available online.