Immigrants are key to long-term U.S. housing health, researcher says

TRD New York /
Jun.June 27, 2012 01:30 PM

The rising average age of U.S. immigrants will spur the long-term recovery of the housing market, according to Gary Painter, director of research at the University of Southern California’s Lusk Center for Real Estate. As new Americans grow older and begin to invest in housing they increase both demand and the number of households in the U.S., but in the short-run this demographic is also decreasing the number of household per person.

The number of heads of households in the market is a key indicator of housing demand. During recessions and periods of high unemployment people increasingly share households or delay moving out, decreasing the number of households and therefore demand.

Since 2008, Painter found that there has been an approximately 6 percent increase in the number of people sharing households. As a result, the rate of new households formed annually has dropped to well under 1 percent — a number that had increased 1 or 2 percent every year since 2000.

However, historical models show that sharing households within immigrant communities is a short term phenomenon that will stabilize and return to traditional levels, even when the job market is weak, according to Painter.

“Due to these demographic shifts, housing demand will come back, even if the job market remains weak. While there’s little evidence that national homeownership rates will rise in the short-term, the maturing of the immigrant population supports a much better long-term outlook,” Painter said. –Christopher Cameron

 

Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
(Getty)

J.C. Penney implosion hits two New York City malls

J.C. Penney implosion hits two New York City malls
RuthAnne Visnauskas, Commissioner of the New York State Division of Housing and Community Renewal

New Yorkers flood rental assistance program on first day

New Yorkers flood rental assistance program on first day
The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking (iStock)

30-year mortgage rate hits record low

30-year mortgage rate hits record low
Joseph Nakash, Aby Rosen and W South Beach (Getty, Google Maps)

Aby Rosen’s RFR, Nakash family battle over failed sale of W South Beach condos

Aby Rosen’s RFR, Nakash family battle over failed sale of W South Beach condos
Former president of Airbnb’s Homes division, Greg Greeley and Airbnb CEO Brian Chesky (Airbnb, Getty)

Airbnb executive to step down as startup revives IPO plans

Airbnb executive to step down as startup revives IPO plans
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...