While Miami is traditionally considered an immigrant entry point, a study from the University of Southern Californiacolor> analyzing foreign homeownership suggests West Palm Beach is actually among the fastest-growing gateway cities.
The report from USC's Lusk Center for Real Estatecolor> said emerging gateway cities have experienced large population increases from immigrants moving directly or migrating domestically from larger cities. These cities also take in U.S.-born households migrating domestically.
Researcher Gary Painter, an associate professor at the USC School of Policy, Planning and Developmentcolor>, said the study assumed lower housing costs in the emerging markets might improve homeownership rates. That assumption, he added, was wrong.
"[L]eaving established gateways does not provide migrants a boost in homeownership attainment," he said. "They need time to establish themselves in the labor market, achieve an income level that makes homeownership possible and find a home that is affordable."
In addition to Miami, the traditional gateway cities are New York, Chicago, San Francisco, Los Angeles and San Diego.
The 14 "emerging gateway" cities are West Palm Beach, Tampa, Atlanta, Boston, Dallas, Denver, Houston, Las Vegas, Orlando, Philadelphia, Phoenix, Sacramento, Seattle and the Washington, D.C./Baltimore corridor.
The study by Painter and graduate student Zhou Yu found immigration patterns have changed over the last decade. Comparing 1990 and 2000 census data, the researchers reported both foreign-born and U.S.-born migrants who move to one of the 14 emerging gateway cities have lower homeownership rates than households that move within a metropolitan area.
Part of the reason is the cities are high-cost. Also, the researchers pointed out, immigrants from second- and third-world countries likely have less education and fewer financial assets, though being less settled makes them are more mobile.
However, when immigrants crowd into one home, the researchers said the multiple incomes help lead to homeownership.
"In particular, Latino immigrants fare better than others in crowded conditions and Asians likewise benefit from having additional incomes in the household," Painter said.
Immigrants also tend to buy homes earlier than U.S.-born people of the same age. Home ownership is a priority in the immigrant goal to get status in this country, the researchers said, adding early home ownership is less of a priority for their U.S.-born counterparts.