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Immigrants have been a force behind household growth in the United States over the past few decades and are projected to be even more important contributors to homeownership after 2025, a new report says.
Harvard University’s Joint Center for Housing Studies reveals that the “foreign-born share of household growth has already climbed from 15 percent in the 1980s to 32 percent in the 1990s and to nearly half so far this decade.”
Looking at the role of demographics, the report notes that a number of factors including size and age structure of the adult population and the rates at which people form households determine the housing requirements.
Corresponding the Census Bureau’s new, lower population estimates and additional declines in household formation rates among young adults, the Joint Center projections put household growth in 2017–2027 to be at 12.0 million.
The projection is markedly lower than the 2016 forecast of 13.6 million, which grew out of expected trends like an increase in household formations among the millennial generation (born 1985–2004), longer periods of independent living among the baby-boom generation (born 1946–1964), and moderate growth in foreign immigration.
The new projection is more in line with the 1.1 million average annual increase over the last three years, the report says.
Here is how the report describes the latest projections:
“Most of this new outlook reflects lower net foreign immigration and higher mortality rates among native-born whites. In combination, these changes mean slower growth in the number of older white households as well as of Hispanic and Asian households of most ages. Although lower than the 1.3 million per year previously projected, net immigration is still expected to average 1.0 million annually over the next decade as growth of the native-born population continues to slow.”
“As a result, immigrants will increasingly drive household growth, especially after 2025 when native-born population growth decelerates further. As it is, the foreign-born share of household growth has already climbed from 15 percent in the 1980s to 32 percent in the 1990s and to nearly half so far this decade.”
Another report released this year also highlighted the key contributions of immigrants to a expansion in homeownership. Compiled by Zillow Research, the report says Asian homeownership rate increased 48%, from 10.1% in 1900 to 58.1% in 2016.
The robust increase in rate of homeownership among Asians stands out when compared to 23.2% among whites, 20.5% among blacks, and 5.4% among Latinos.
Among population groups, only white households (71.3%) are ahead of Asian-Americans. Hispanic-Americans and African-American households are seen at 45.6% and 41%, respectively.
