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Impact of Housing Downturn on Largest Immigrant Groups

While the housing downturn impacted all foreign-born American homeowners, immigrant populations were impacted differently, according to a report from ""Fannie Mae's Economic & Strategic Research Group"":http://www.fanniemae.com/portal/research-and-analysis/index.html.

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Using Census Bureau data from 2007 to 2011, Fannie Mae researchers set out to understand how immigrant homeowners were impacted by the housing collapse.

The analysis examined the five most-populous immigrant groups--Mexican, Indian, Filipino, Salvadoran, and Chinese. After analyzing how the crisis impacted the different groups, Fannie Mae found Chinese immigrants were the least impacted and were ""relatively unscathed"" when comparing homeownership rates and home value declines.

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For example, with the exception of Chinese immigrants, all of the immigrant groups experienced steep declines in their homeownership rates from 2007 to 2011: 47.2 percent to 45 percent for Mexicans; 48.6 percent to 42.8 percent for Salvadorans; 57.2 percent to 54.6 percent for Indians, and 69 percent to 62.6 percent for Filipinos. Yet, the rate was essentialy unchanged at 60.3 percent for Chinese immigrants.

Additionally, the median home value remained stable for Chinese homeowners, unlike the other large groups who experienced sharp declines.

Salvadorans, Mexicans, and Filipinos saw the biggest price decreases, with median home values falling 47.6 percent, 36.3 percent, and 33.5 percent, respectively, for each group over the four-year period examined.

The researchers also found great variation in median home values for the groups, ranging from $115,900 for Mexican homeowners, $356,300 for Indian homeowners, and $425,600 for Chinese owners.

The study also found housing cost burdens eased for the large foreign-born groups, though Chinese immigrants did not experience a significant decrease.

The groups with the biggest housing cost burdens were Salvadoran and Mexican homeowners, at 62.8 percent and 56.5 percent, respectively. Indian homeowners had the lowest housing cost burden, at35.7 percent, followed by Filipino homeowners at 43.9 percent.

About Author: Esther Cho

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