Networks are key to housing outcomes for new immigrants

New U.S. immigrants have typically settled in large gateway cities like New York, Los Angeles and Chicago. In recent years, this trend has shifted, with a 27% increase in new immigrants settling in smaller metropolitan areas, including Minneapolis-St. Paul. A study released this week looks at whether settling in smaller metro areas changes housing outcomes for immigrant groups.

Here are the key findings:

• Immigrants in small metro areas are more likely to live in overcrowded conditions, something that declines but does not go away with time spent in the United States. This is due in part to larger families and multiple generations living in the same household.
• The homeownership gap between immigrants and U.S.-born residents is larger in smaller metropolitan areas than in traditional gateway cities. This homeownership gap exists even with increased length of time in the U.S.
• Immigrants experience better housing outcomes when there are larger, established networks of immigrant households in the area. The findings from this study suggest that immigrant networks increase the likelihood of homeownership for new immigrants in smaller metropolitan areas.

The study, Immigrants and housing markets in mid-size metropolitan areas, was published by the Lusk Center for Real Esate at the University of Southern California.