Interesting story in the Financial Times about how immigrants to the U.S. have not only been key to the housing recovery, they will remain key to the market. It’s based in part on a report from Housing America and the Mortgage Bankers Association.
Some key points:
- While home ownership has been falling for native-born Americans over the last several years, it’s been increasing for immigrants.
- From 2010 to 2020 more than a third of buyers will likely be immigrants — nationwide, they’re expected to account for 35.7 percent of new homeowners.
- That growth in foreign-born homeowner demand “is projected to remain strong in the nation and increase in all but two states, California and New York.”
- If current non-citizens gain that citizenship, economists project it will result in $100 billionbeing spent on housing.
The FT explains the attraction — it’s more than just latching on to the American Dream.
Property is also an attractive investment for non-English speakers. “Your investment opportunities are much more limited,” says [Leung Hon, a real estate agent in New York]. “You can’t play the stock market or buy bonds. A house is easy to understand and is seen as a form of savings.”