What's Driving Homeownership Demand? Immigration, Says Study
Immigrants will generate almost 36 percent of the increased demand for U.S. homes this current decade, according to new research reported by USA Today. A study by the Population Dynamics Research Group at the University of Southern California found that immigrant buyers filled a "big hole" and played a key role in boosting home demand over the past decade -- when demand from native-born homebuyers was low. (Last decade, immigrants generated 39 percent of demand for U.S. homes.)
Though the report shows that homeownership demand from U.S. natives will pick up as the number of buyers in the 25- to 34-year-old age group grows, demand from immigrants will continue to remain strong. "We'll be firing on all cylinders," Dowell Myers of Population Dynamics told USA Today. "The native-born were absent in the last decade. Now, they're more present."
For six states, it's projected that foreigners will drive the majority of homeowner demand this decade: California, New York, New Jersey, Massachusetts, Connecticut and Michigan, according to the USC report. In California, that figure will be 71 percent; in New York, 59 percent. The report projects, though, that 5.1 million native buyers will be added this decade -- but that's down from 7.9 million in the 1990s.
An increased demand for homes across the board is yet another sign the housing market is gaining momentum. Latest figures also reveal rising U.S. home prices: up 9.7 percent in January from a year ago, according to data released Tuesday by CoreLogic. That's up from an 8.3 percent increase in December and the biggest annual gain since April 2006.
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