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CONFERENCE HOUSING DOWNTURN HITS IMMIGRANT GROUPS CALENDAR PLACES TO BE THIS MONTH SEPTEMBER 8 - 10 The 10th Annual Five Star Conference and Expo HILTON ANATOLE DALLAS, TEXAS Contact: 214.525.6766 Online: FIVESTARCONFERENCE.COM SEPTEMBER 19 - 21 2013 AREAA National Convention HYATT REGENCY CENTURY PLAZA LOS ANGELES, CALIFORNIA Contact: 760.918.9162 Online: AREAA.ORG SEPTEMBER 23 - 24 3rd Annual Mortgage Regulatory Conference CRYSTAL GATEWAY MARRIOTT ARLINGTON, VIRGINIA Contact: 800.803.3424 Online: SOURCEMEDIA.COM/EVENTS SEPTEMBER 24 EisnerAmper Real Estate Private Equity Summit MCGRAW-HILL CONFERENCE CENTER NEW YORK, NEW YORK Contact: 646.862.6136 Online: EAPRIVATEEQUITY.COM SEPTEMBER 29 – OCTOBER 1 AmeriCatalyst 2013 BARTON CREEK RESORT AND SPA AUSTIN, TEXAS Contact: 512.551.9332 Online: AMERICATALYST.COM SEPTEMBER 30 – OCTOBER 1 Bank & Financial Institutions Special Asset Executive Conference on Real Estate Workouts SWISSOTEL CHICAGO CHICAGO, ILLINOIS Contact: 212.224.3428 Online: IMN.ORG 20 While the housing downturn impacted all foreign-born American homeowners, immigrant populations were impacted differently, according to a report from Fannie Mae's Economic & Strategic Research Group. Using Census Bureau data from 2007 to 2011, Fannie Mae researchers set out to understand how immigrant homeowners were impacted by the housing collapse. The analysis examined the five most-populous immigrant groups: Mexican, Indian, Filipino, Salvadoran, and Chinese. After analyzing how the crisis impacted the different groups, Fannie Mae found Chinese immigrants were the least impacted and were "relatively unscathed" when comparing homeownership rates and home value declines. For example, with the exception of Chinese immigrants, all of the immigrant groups experienced steep declines in their homeownership rates from 2007 to 2011: 47.2 percent to 45 percent for Mexicans; 48.6 percent to 42.8 percent for Salvadorans; 57.2 percent to 54.6 percent for Indians; and 69 percent to 62.6 percent for Filipinos. Yet, the rate was essentialy unchanged at 60.3 percent for Chinese immigrants. Additionally, the median home value remained stable for Chinese homeowners, unlike the other large groups, who experienced sharp declines. Salvadorans, Mexicans, and Filipinos saw the biggest price decreases, with median home values falling 47.6 percent, 36.3 percent, and 33.5 percent, respectively, for each group over the four-year period examined. The researchers also found great variation in median home values for the groups, ranging from $115,900 for Mexican homeowners, $356,300 for Indian homeowners, and $425,600 for Chinese owners. The study also found housing cost burdens eased for the large foreign-born groups, though Chinese immigrants did not experience a significant decrease. The groups with the biggest housing cost burdens were Salvadoran and Mexican homeowners, at 62.8 percent and 56.5 percent, respectively. Indian homeowners had the lowest housing cost burden, at 35.7 percent, followed by Filipino homeowners, at 43.9 percent. RESEARCH INDICATES CRISIS DID NOT DAMAGE HOMEOWNERSHIP PERCEPTIONS Not only is homeownership hailed as part of the "American Dream," but it is also imbued with several positive financial and cultural effects on families. Studies have linked homeownership to everything from greater political participation to higher educational achievement among children. However, as more than 4 million Americans lost their homes to foreclosure during the financial crisis, one-fourth of all mortgageholders fell underwater on their loans, and more than $8 million in wealth was wiped out by plummeting home values, questions arose about whether the long-held benefits of homeownership remain true today. Harvard University's Joint Center for Housing Studies recently released a paper by two researchers at the University of North Carolina at Chapel Hill—Dr. William M. Rohe, Cary C. Boshamer distinguished professor of city and regional planning, and Mark Lindblad, research director of the university's Center for Community Capital. After evaluating research on perceptions of homeownership, the two concluded the housing crisis appears to have had no major long-term effects on Americans' views of homeownership. "Our review of early research on the impacts of the housing crisis on attitudes toward homeownership suggest that no extraordinary efforts will be needed to attract American households back into the housing market," the authors said in their paper, Reexamining the Social Benefits of Homeownership After the Crisis. Through the lens of finance, it might be understandable—given the number of homeowners who have suffered damaged credit as a result of foreclosure or declining equity—if some Americans abandoned the viewpoint that owning a home is a good financial investment. However, "[e]ven after the dramatic loss of equity and the high foreclosure rates, the early evidence suggests that people seem to believe that, over the long run, owning is still preferable to renting, at least when it comes to the financial benefits of homeownership," the authors stated. They also posed the question of whether the sense of security families once felt in their homes has survived the financial crisis and found "[t]he long-term cultural preference for owning seems to have weathered the recent housing crisis." Despite these initial findings, Rohe and Lindblad say more research is necessary to determine both the perceived and actual non-financial benefits of homeownership after the housing crisis. According to the paper, further analysis is warranted given "the federal commitment and subsidy of homeownership has been justified by claims that it has a variety of social benefits to both individuals and to society."

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