Are foreign-born homeowners driving up prices?

Study reveals where foreign-born owners are most prolific

Are foreign-born homeowners driving up prices?

With US Census Bureau data showing the highest share of immigrants since 1910, a new analysis shows where foreign-born homeowners are most prolific – and why.

Overall, 2017 data shows that 13.7% of the US population was foreign born and LendingTree’s report reveals that cities with the largest share have higher home prices.

Prices in the top 10 cities for foreign-born owners average $491,750 compared to $167,560 for the bottom 10.

Topping the list – and counter to the higher home price trend - is Miami where foreign-born residents make up 26% of all homeowners.

The median price in Miami is well below the average for the top 10 at $278,700 and Houston and Las Vegas are also more affordable top 10 markets.

Californian coastal cities take 4 of the top 5 spots.

Immigrant impact on home prices

So, are foreign owners driving up home prices in the cities they choose?

Not according to LendingTree’s chief economist Tendayi Kapfidze.

"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,” he explains. "The proportion of highly-skilled immigrants is also higher in these cities which puts some upward pressure on home prices as a secondary effect.”

He adds that 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.

Rank

Metro

Foreign-born
Homeownership
Rate

Native-born
Homeownership
Rate

Total
Homeownership
Rate

Foreign-
born to
total
population
ratio

Median
Home
Price

1

Miami

25.70%

33.70%

59.50%

41.00%

$278,700

2

San Jose, Calif.

24.80%

32.40%

57.20%

38.90%

$957,700

3

Los Angeles

18.30%

30.10%

48.40%

33.30%

$617,100

4

San Francisco

17.90%

36.70%

54.60%

31.30%

$849,500

5

Riverside, Calif.

17.30%

45.70%

63.00%

20.60%

$342,300

6

Houston

16.60%

44.10%

60.70%

23.60%

$192,900

7

Las Vegas

14.60%

39.50%

54.20%

23.10%

$250,000

8

New York

14.40%

37.40%

51.80%

29.20%

$440,900

9

Washington

14.30%

49.30%

63.60%

23.10%

$424,600

10

San Diego

12.90%

40.60%

53.50%

23.30%

$563,800

11

Chicago

12.80%

51.60%

64.40%

18.00%

$240,300

12

Dallas

11.70%

47.90%

59.70%

18.70%

$214,900

13

Orlando, Fla.

11.60%

48.80%

60.40%

18.70%

$219,000

14

Sacramento, Calif.

11.40%

48.90%

60.20%

19.10%

$390,000

15

Seattle

11.00%

49.00%

60.00%

18.80%

$439,800

16

Boston

9.70%

52.10%

61.80%

19.00%

$441,400

17

Atlanta

9.40%

53.60%

63.00%

14.10%

$215,100

18

Phoenix

9.40%

54.30%

63.70%

14.20%

$246,900

19

Hartford, Conn.

9.30%

57.20%

66.50%

13.50%

$247,900

20

Tampa, Fla.

9.00%

55.40%

64.40%

14.20%

$191,200

21

Austin, Texas

9.00%

48.70%

57.70%

15.10%

$283,600

22

San Antonio

8.30%

54.90%

63.30%

11.60%

$170,100

23

Raleigh, N.C.

8.10%

58.90%

67.00%

12.80%

$244,500

24

Salt Lake City

8.00%

60.00%

68.00%

12.50%

$294,800

25

Portland, Ore.

7.70%

55.50%

63.20%

12.50%

$376,000

26

Providence, R.I.

7.60%

54.20%

61.90%

13.60%

$277,400

27

Philadelphia

7.40%

58.60%

66.10%

11.10%

$250,900

28

Denver

7.20%

57.00%

64.10%

12.30%

$386,800

29

Detroit

7.00%

61.90%

68.90%

10.30%

$171,600

30

Baltimore

6.80%

59.80%

66.60%

11.00%

$297,300

31

Jacksonville, Fla.

6.20%

57.50%

63.60%

9.40%

$205,100

32

Charlotte, N.C.

6.10%

59.50%

65.60%

10.20%

$197,100

33

Minneapolis

5.50%

64.70%

70.20%

11.00%

$254,800

34

Oklahoma City

4.70%

58.80%

63.50%

7.40%

$156,800

35

Rochester, N.Y.

4.50%

62.10%

66.60%

7.20%

$144,500

36

Richmond, Va.

4.50%

61.80%

66.20%

7.40%

$237,900

37

Virginia Beach, Va.

4.20%

57.80%

62.00%

6.50%

$245,900

38

Milwaukee

4.10%

55.60%

59.70%

7.30%

$213,800

39

Nashville, Tenn.

4.10%

61.00%

65.00%

8.10%

$242,900

40

Cleveland

4.00%

60.40%

64.40%

5.80%

$150,400

41

Indianapolis

3.80%

61.60%

65.40%

7.20%

$162,200

42

Buffalo, N.Y.

3.70%

61.80%

65.50%

6.50%

$148,900

43

Kansas City, Mo.

3.60%

61.00%

64.60%

6.70%

$180,700

44

Columbus, Ohio

3.60%

58.20%

61.80%

7.80%

$182,300

45

New Orleans

3.50%

58.70%

62.20%

7.50%

$193,100

46

Memphis, Tenn.

2.90%

57.30%

60.30%

5.40%

$148,800

47

St. Louis

2.80%

66.10%

68.90%

4.90%

$172,200

48

Cincinnati

2.70%

63.20%

65.90%

5.00%

$165,500

49

Louisville, Ky.

2.70%

64.10%

66.80%

5.90%

$168,600

50

Pittsburgh

2.10%

67.80%

69.90%

3.80%

$153,300