Why are Chinese Homeownership Rates so high?

Submitted by Urban Insight on Wed, 07/25/2012 - 15:01
Author

Gary Painter, Lihong Yand and Zhou Yu

Year Published
2003
Abstract
Traditional assimilation theory suggests immigrant adaptation into society as a
function of catching up to the status of the host society. Recent Chinese immigrants,
rather than climbing socioeconomic ladders over time, may have achieved a
socioeconomic status comparable to that of native-born whites soon after arrival, as
measured by their homeownership rates (Painter et al, forthcoming). The characteristics
of Chinese communities in this analysis more closely fit the description of ethnic
communities described in Alba et al (2002) than ethnic enclaves Borjas (2000).
Chinese homeownership rates adjusted by socioeconomic and housing market
characteristics are on average 18 percentage points higher than those of native white
households. The results of this study find that none of this gap can be explained by the
English proficiency of households. On the other hand, the cultural influence of homeowning peers may have partially contributed to the higher homeownership of Chinese
households. Finally, we find that there is great diversity among Chinese subgroups with
respect to their likelihood of owning a home, but very little diversity with respect to the
education and income level of Chinese households.
Research Category

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