New LendingTree study ranks cities by the immigrant homeownership rate
Charlotte, NC – Oct. 11, 2018 (PRNewswire) LendingTree®, the nation’s leading online loan marketplace, today released its study on cities with the most foreign-born homeowners.
The Census Bureau recently released data that shows the United States has the highest proportion of immigrants since 1910. In data for 2017, the Census Bureau found that 13.7 percent of the U.S. population was foreign-born. LendingTree researchers analyzed Census data to identify how cities in the U.S. rank in terms of the proportion of homes owned by foreign-born households.
Key findings
- Cities with larger foreign-born populations and homeowners have higher home prices. Prices for the top 10 cities average $491,750 compared with $167,560 for the bottom 10.
- But the lead city has modest home prices. Miami is top of the list with 26 percent of homes owned by foreign-born residents but has a median price of just $278,700.
- Immigrants love the coasts. The rest of the top five are also coastal cities, all in California with 17 percent and higher foreign-born homeownership rates and home prices above $300,000.
- Some bargains are available. In addition to Miami, more affordable cities with high immigrant populations include Houston at No. 6 and Las Vegas at No. 7.
- Cheaper cities are mostly shunned. Immigrants show little interest in bargain hunting in the cities towards the bottom of the list. The percentage of foreign-born homeowners in the bottom five cities is below 3 percent, despite home prices averaging about $160,000.
Cities in America with the most foreign-born residents
#1 Miami
Foreign-born homeownership rate: 26%
Foreign-born population: 41%
Median value: $278,700
#2 San Jose
Foreign-born homeownership rate: 25%
Foreign-born population: 39%
Median value: $957,700
#3 Los Angeles
Foreign-born homeownership rate: 18%
Foreign-born population: 33%
Median value: $617,100
Cities in America with the least foreign-born residents
#48 Cincinnati
Foreign-born homeownership rate: 3%
Foreign-born population: 5%
Median value: $165,500
#49 Louisville, KY
Foreign-born homeownership rate: 3%
Foreign-born population: 6%
Median value: $168,600
#50 Pittsburgh
Foreign-born homeownership rate: 2%
Foreign-born population: 4%
Median value: $153,300
“Out of the 50 largest cities in the country, those with a higher share of homes owned by foreign-born residents tend to have higher home prices,” said Tendayi Kapfidze, Chief Economist at LendingTree. “This is not to say that immigrants raise home prices — rather, it’s likely that immigrants gravitate towards these cities which have higher home prices, as they also have more dynamic economies and thus more employment opportunities.”
Kapfidze continued, “The proportion of highly-skilled immigrants is also higher in these cities which puts some upward pressure on home prices as a secondary effect. Thus, homeowners in cities with high foreign-born populations benefit from faster home price appreciation, creating opportunities for them to access this wealth via refinancing or home equity extraction. This added spending can in turn boost the economy or provide capital to fund new businesses.”
To view the full report, click here.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation’s leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers’ credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree’s purpose is to help simplify financial decisions for life’s meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.
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