Immigrant Influx into Mid-Size Metro Areas to Influence Housing Markets

Immigrants to the United States and their
descendants are predicted to reach 82 percent of
U.S. population growth in the next four decades
(Passel and Cohn, 2008). The exponential growth
will not be limited to established gateway cities
where it typically has concentrated; an increasing
share will occur in mid-size metropolitan areas
(Table 1) (e.g., Frey and DeVol, 2000; Massey, 2008).
Since the turn of the century, for example, the
number of new immigrants has jumped by 27
percent in mid-size U.S. communities, a remarkable
contrast to the steady decline in established
gateway cities such as New York and Los Angeles.
Noteworthy as well is that many mid-size metro
areas, up until recent years, had not experienced an
influx of immigrants since the 1965 immigration
reform (Frey, 2003). This rapid entry paired with a
lack of already established immigrant communities
will have a considerable and unforeseeable impact
on mid-size metro areas. The question for the real
estate industry is how the immigrant dynamic will
affect housing in these areas, particularly at a time
when the populous and aging Baby Boomers are
retiring and leaving the housing market (Frey and
DeVol, 2000; Myers, 2007).