ULI Study Shows Immigrants Settling Away from Gateway Cities

Lured by less competition for jobs, more and more immigrants are putting down permanent roots outside the major gateway cities of Los Angeles, Chicago and New York, according to a new paper by the University of Southern California's Lusk Center for Real Estate. The study of 60 mid-sized cities found an average rise in their immigrant populations of 27%, while the gateways are losing residents. "The anticipated rapid growth of U.S. immigrant populations in the coming decades coupled with their movement into mid-size metro areas has the potential to transform communities," said one of the paper's authors, director of research Gary Painter. "Our data suggest that immigrants are attracted to homes near active support networks of fellow immigrants and in places with lower rates of immigrant growth resulting in less competition for entry-level jobs." The study found that immigrants continue to have a lower ownership rate than native-born Americans with the same income and education levels, a finding that Mr. Painter said indicates that many may be waiting for other family members to join them. He suggested that cities trying to lure immigrants with employment opportunities also start developing networks of real estate agents and lenders with the same ethnic backgrounds and a willingness to build strong ties to the new arrivals. "Nurturing links within the immigrant community are key to building a new rank of homeowners," he said. The researcher pointed out that areas with declining home values could see prices stabilize thanks to a wave of first-time buyers who speak English as a second language.