Homeowner and Rental Markets will be Driven by Foreign-Born Households this Decade

By Sari R. Updated on 3/6/2013

According to a new report by the Mortgage Bankers Association’s Research Institute for Housing America, foreign-born households made up a large share of homeownership in the century’s first decade.  The report is a projection based on the foreign-born demographic and how it will affect the housing demand. 

In the past three decades, there has been a tremendous increase in foreign-born homeowners.  From 1980-1990, there were 2.1 million immigrant homeowners, and from 1990-2000, there were 2.4 million immigrant homeowners.  This past decade saw the biggest growth ever, increasing to 2.4 million from 2000-2010.  This report is projected an increased 2.8 million in the decade 2010 – 2020. 

The same effect can be seen in the rental market, too.  These foreign born rental households saw a net increase of 1.6 million in the last decade, and are projected to see a net increase of 1.3 million next decade.

In the upcoming decade, immigrants are projected to make up 32.2% of growth in all households, 35.7% in homeownership growth and 26.4% of renters. 

Analysts attribute these statistics to the fact that native-born demand has been subject to changes in the size of new homeowners in between the ages of 25 and 34.  The size of new homeowners who are foreign-born has been more stable over the past few decades. 

States that have been particularly affected by foreign-born households are California, New York, Pennsylvania, New Jersey, Michigan, Ohio and Massachusetts.  The growth in these states is expected to continue with the exception of Connecticut and Ohio.

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