Immigrants real estate buyers have underpinned the housing market across the United States in the last decade and will continue to drive demand at least until the end of 2020 , according to a new study.
Foreign buyers accounted for most of the growth in property ownership in states traditionally populated by immigrants and offset a decline in purchases by Americans by birth in other areas , according to a report prepared by demographers at the University of South California Mortgage Bankers Association of the country.
Specifically , the number of homeowners in the U.S. who were born in other countries has increased every decade since 1990. Immigrants, representing 13% of the population, constituted 39% of the net growth in homeownership between 2000 and 2010. In the decade from 2010 to 2020 , representing 36 % of this growth, the report projected .
"The group of home buyers is much more diverse than in the past ," said Mike Fratantoni , vice director of research of the association. "The demand for immigrants is far more important nationally ( ... ) of what an ordinary person would ."
Immigrants are more likely to buy a home once they are installed and become more financially stable in the U.S. , usually after having rented for a few years . Among Hispanics who came to the U.S. during the 80's , the home ownership rose from 15 % in 1990 to 53% in 2010, and is projected to reach 61 % by 2020 , the report said.
Although the growth of immigrant populations in California and New York have fallen below their highs of 80 and 90 , respectively , the growth of home purchases by foreigners rose to record rates between 2000 and 2010. During this period , immigrants constituted 82 % jump in home ownership in California and 65 % in New York.
In Texas and Florida, the number of foreign property owners continued to climb between 2000 and 2010 despite the expansion in the immigrant population leveled . In the same decade , immigrants also accounted for a significant share of ownership of real estate in states like Illinois, New Jersey, Pennsylvania, Massachusetts, Ohio and Michigan, the report says .
In the southeastern U.S. , which began to experience a wave of immigration in the 90s , foreigners accounted for 34 % of the increase homeownership in the state of Georgia and 25% in North Carolina during the decade completed in 2010.
Recent immigrants are playing similar to the generation of baby boomers role , as people born in the U.S. is known in the two years following the Second World War and in the 70 and 80 entered the large mass housing market decades , says study co-author John Pitkin , an associate researcher with the group studying population dynamics at the University of southern California.
The Ruy Martins Brazilian , who arrived in Atlanta , Georgia, in 1999 , rented a two-bedroom apartment for two years while working in the construction sector and cleaning houses with his wife. In 2001 , the couple got a mortgage to buy a house with three bedrooms. After that Martins opened a business outsourcing restoring homes for insurance companies , bought a bigger house in 2007 .
"We live a life -style ," said Martins , 41 and father of three children. Now rented the smaller house.
The study of the Mortgage Bankers Association , which is based on census data does not distinguish between legal and illegal immigrants. Undocumented immigrants often get a mortgage using an individual tax identification number , known as ITIN for its acronym in English, or through an intermediary.
The trend toward home ownership among immigrants contributed to a slowdown in rental rates after 2000 , the study found .
However, the rate of home ownership among immigrants remains below that of the native USA: 52.4 % vs 67 %.
And after the housing collapse , a study conducted last year by the Pew Hispanic Center found that the sharp decline in housing prices left 28% of Latino-owned housing, including many immigrants, owing more on mortgage payments than their homes were worth twice the percentage of homeowners in the general population .
Still, " the expansion of demand for real estate among those born outside the U.S. was vital to prevent the recession was even worse ," says the report.