San Jose: Home ownership among immigrants among nation’s highest

Nearly a quarter of immigrants in San Jose’s expensive real
estate market are homeowners, the second highest rate of any major
city in the country.

LendingTree, an online loan marketplace, ranked home ownership
rates among immigrants for the 50 largest U.S. cities. Four other
California cities cracked the top 10: Los Angeles in third, San
Francisco in fourth, Riverside in fifth and San Diego in 10th.

Of the 50 cities studied, San Jose also had the second-highest
share of foreign-born residents, nearly 39 percent, which includes
naturalized citizens, permanent residents, visa holders and
undocumented migrants. A third of the city’s native born
residents are homeowners.

Tendayi Kapfidze, chief economist at LendingTree, said cities
with high rates of home ownership among immigrants also had some of
the most expensive housing markets.

“Immigrants are attracted to the more dynamic cities, where
there’s greater job opportunities,” he said. “And that
tends to also go along with areas with higher home prices.”

One exception was Miami, which topped the list with a
foreign-born home ownership rate of 26 percent. Median home value
in Miami is just $278,700, far less than the nearly $1 million
median price of San Jose.

Kapfidze noted that Silicon Valley’s technology industry,
where workers have seen some of the only regional wage
gains
in the past 20 years, has attracted immigrants from all
over the world.

“Very high skilled, very well educated people from all around
the world tend to gravitate to that part of the country because of
that industry,” Kapfidze said.

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In San Francisco, the other Bay Area city on the list, almost 18
percent of immigrants own their homes. That’s about half the rate
of ownership among native-born residents.

Among all 50 cities studied, immigrants had significantly lower
ownership rates than their native-born neighbors. Although San
Jose’s large foreign-born population is catching up, the city as
a whole had the sixth lowest total home ownership rate in the
report. Only about 57 percent of San Jose residents own the home
they live in. In contrast, Minneapolis had the highest ownership
rate: about 70 percent of residents there own their homes.

Source: FS – All – Real Estate News 1
San Jose: Home ownership among immigrants among nation’s highest