Immigration and the New Jersey Housing Market

Immigration and the New Jersey Housing Market 2001-2010 Report Prepared for the New Jersey Association of REALTORS Governmental Research Foundation By Richard W. Martin Associate Professor of Real Estate Terry College of Business University of Georgia September 2012

Table 1 Household Counts Household Counts Citizen, Non-Movers Noncitizen, Moved to NJ More Than One Year Ago Noncitizen, Moved to NJ From Abroad During Past Year 2001 11,649 1,054 11 2002 10,346 924 16 2003 11,595 1,099 84 2004 11,511 1,060 69 2005 30,937 2,752 213 2006 32,420 3,020 229 2007 32,905 3,072 189 2008 33,042 3,101 207 2009 33,452 3,199 175 2010 33,529 3,279 212 29

Table 2 Country of Origin for New Immigrant Households Country of Origin 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Share India 17 5 6 8 27 34 41 41 35 39 253 16.16% Mexico 9 2 2 4 17 12 14 5 13 11 89 5.68% South America, Not Specified 6 11 9 0 7 15 4 17 9 9 87 5.56% South Korea 5 7 5 3 9 12 5 5 11 17 79 5.04% China, Hong Kong, and Paricel Islands 6 0 4 0 14 14 7 10 9 11 75 4.79% Dominican Republic 2 4 1 5 6 6 4 6 14 22 70 4.47% Philippines 6 0 4 5 15 9 7 11 5 2 64 4.09% Brazil 4 2 3 4 9 8 5 11 3 6 55 3.51% Germany 1 3 4 2 11 7 9 5 8 3 53 3.38% Japan 0 1 2 3 6 10 3 12 2 2 41 2.62% Colombia 6 3 1 1 6 5 4 5 7 3 41 2.62% Canada 0 0 3 2 5 6 6 7 4 4 37 2.36% Central America, Not Specified 3 1 1 5 5 6 3 1 3 6 34 2.17% South Central Asia or Asia, Not Specified 0 0 0 0 4 5 3 9 6 6 33 2.11% Guatemala 1 0 1 1 4 9 6 6 2 2 32 2.04% Jamaica 2 1 1 0 11 1 3 4 4 5 32 2.04% United Kingdom 7 2 3 1 3 8 1 3 1 2 31 1.98% Eastern Europe, Not Specified 5 3 0 0 4 5 5 2 2 4 30 1.92% Northern Africa, Not Specified 1 2 4 2 2 5 2 5 4 1 28 1.79% Western Africa, Not Specified 3 1 0 0 4 7 3 1 4 5 28 1.79% Caribbean and North America, Not Specified 0 1 0 1 6 2 6 5 2 4 27 1.72% Western Asia, Not Specified 0 1 2 1 3 4 1 6 4 1 23 1.47% Poland 1 0 3 1 7 4 2 0 1 2 21 1.34% Other Europe, Not Specified 3 2 0 0 1 3 6 0 3 3 21 1.34% Northern Europe, Not Specified 1 2 4 1 0 2 2 3 1 3 19 1.21% El Salvador 0 2 4 1 3 2 4 2 0 1 19 1.21% 30

France 0 1 1 0 4 1 4 1 1 5 18 1.15% Peru 0 0 0 0 2 1 5 4 2 4 18 1.15% Russia 1 2 1 2 1 2 1 3 2 2 17 1.09% Israel 1 4 0 1 0 7 1 0 0 3 17 1.09% Cuba 4 2 0 0 2 0 0 1 1 6 16 1.02% Ukraine 2 1 0 2 1 2 2 2 0 2 14 0.89% Vietnam 1 1 2 3 0 1 2 0 0 2 12 0.77% Western Europe, Not Specified 1 0 1 0 3 0 2 1 1 2 11 0.70% Taiwan 0 0 2 1 2 0 4 1 1 0 11 0.70% Australia 0 1 0 0 2 1 3 2 2 0 11 0.70% England 0 0 0 0 0 3 0 2 3 2 10 0.64% Eastern Asia, Not Specified 0 0 2 2 0 0 2 0 2 2 10 0.64% Honduras 0 0 0 0 3 2 1 2 0 1 9 0.57% Eastern Africa, Not Specified 0 0 0 2 1 2 1 1 0 2 9 0.57% Africa 0 0 0 0 0 4 0 1 0 3 8 0.51% Thailand 0 0 0 0 2 0 3 0 2 0 7 0.45% Other Asia 3 4 0 0 0 0 0 0 0 0 7 0.45% Ecuador 2 1 2 1 0 0 0 0 0 0 6 0.38% Other Africa, Not Specified 0 0 0 0 1 0 0 2 1 2 6 0.38% Italy 0 1 1 0 0 2 0 1 0 0 5 0.32% Turkey 0 2 3 0 0 0 0 0 0 0 5 0.32% Sweden 2 0 0 2 0 0 0 0 0 0 4 0.26% Spain 1 1 0 0 0 0 0 0 0 0 2 0.13% Other Southeast Asia 1 1 0 0 0 0 0 0 0 0 2 0.13% Haiti 0 1 0 1 0 0 0 0 0 0 2 0.13% South Africa 1 0 1 0 0 0 0 0 0 0 2 0.13% Australia and New Zealand sub region, Not Specified, Oceania and At Sea 0 0 0 0 0 0 1 1 0 0 2 0.13% Iraq 0 0 0 0 0 0 1 0 0 0 1 0.06% Chile 0 0 0 1 0 0 0 0 0 0 1 0.06% Venezuela 0 0 1 0 0 0 0 0 0 0 1 0.06% 31

Table 3 Average Household Size by Group (a) Citizen Non-Movers (b) Non-recent Immigrants (c) New Immigrants 2001 2.48 3.39 2.55 2002 2.5 3.43 4.31 2003 2.51 3.49 4.11 2004 2.53 3.4 3.9 2005 2.46 3.49 3.82 2006 2.39 3.37 3.46 2007 2.39 3.39 3.82 2008 2.38 3.35 3.62 2009 2.35 3.38 3.47 2010 2.37 3.48 4.07 Average 2.44 3.42 3.71 (a vs. b) (b vs. c) (a vs. c) 36.69% -24.78% 2.82% 37.20% 25.66% 72.40% 39.04% 17.77% 63.75% 34.39% 14.71% 54.15% 41.87% 9.46% 55.28% 41.00% 2.67% 44.77% 41.84% 12.68% 59.83% 40.76% 8.06% 52.10% 43.83% 2.66% 47.66% 46.84% 16.95% 71.73% 40.16% 8.48% 52.05% 32

Table 4 Average Household Income by Group (a) Citizen Non-Movers (b) Non Citizen Non- Movers (c) Non-Citizen Moved from Abroad 2001 $78,631 $75,915 $44,209 2002 $81,841 $78,162 $50,669 2003 $82,671 $78,125 $84,634 2004 $85,998 $79,495 $66,074 2005 $87,533 $79,480 $74,772 2006 $90,570 $82,291 $84,844 2007 $96,557 $89,519 $105,767 2008 $99,700 $91,667 $109,288 2009 $99,504 $88,990 $91,368 2010 $97,280 $86,262 $98,763 Average $90,029 $82,992 $81,039 (a vs. b) (b vs. c) (a vs. c) -3.45% -41.77% -43.78% -4.50% -35.17% -38.09% -5.50% 8.33% 2.37% -7.56% -16.88% -23.17% -9.20% -5.92% -14.58% -9.14% 3.10% -6.32% -7.29% 18.15% 9.54% -8.06% 19.22% 9.62% -10.57% 2.67% -8.18% -11.33% 14.49% 1.52% -7.82% -2.35% -9.99% 33

Table 5 Median Household Income by Group (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 $60,040 $59,075 $22,000 2002 $63,100 $62,000 $45,700 2003 $64,800 $62,000 $66,810 2004 $67,000 $61,000 $47,000 2005 $66,001 $60,000 $64,500 2006 $69,400 $63,000 $56,500 2007 $72,200 $67,000 $71,100 2008 $75,335 $66,550 $79,900 2009 $75,000 $68,600 $57,900 2010 $73,200 $65,020 $70,835 Average $68,608 $63,425 $58,225-1.61% -62.76% -63.36% -1.74% -26.29% -27.58% -4.32% 7.76% 3.10% -8.96% -22.95% -29.85% -9.09% 7.50% -2.27% -9.22% -10.32% -18.59% -7.20% 6.12% -1.52% -11.66% 20.06% 6.06% -8.53% -15.60% -22.80% -11.17% 8.94% -3.23% -7.55% -8.20% -15.13% 34

Table 6 Labor Force Participation Rate by Group (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 64.27% 68.72% 71.43% 2002 64.38% 71.27% 41.18% 2003 65.09% 67.45% 56.82% 2004 64.45% 69.70% 39.66% 2005 64.24% 70.63% 43.90% 2006 64.99% 71.93% 54.71% 2007 64.49% 70.90% 53.76% 2008 66.40% 73.66% 60.63% 2009 66.48% 72.79% 55.23% 2010 66.04% 72.78% 58.29% Average 65.1% 71.0% 53.6% 6.92% 3.94% 11.14% 10.70% -42.22% -36.04% 3.63% -15.76% -12.71% 8.15% -43.10% -38.46% 9.95% -37.85% -31.66% 10.68% -23.94% -15.82% 9.94% -24.17% -16.64% 10.93% -17.69% -8.69% 9.49% -24.12% -16.92% 10.21% -19.91% -11.74% 9.06% -24.51% -17.67% 35

Table 7 Unemployment Rate by Group (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 4.32% 6.18% 30.00% 2002 5.82% 7.05% 0.00% 2003 5.67% 8.42% 16.00% 2004 5.34% 7.33% 8.70% 2005 4.52% 6.41% 14.44% 2006 4.30% 5.45% 17.21% 2007 4.38% 5.88% 15.05% 2008 4.21% 5.24% 10.45% 2009 7.73% 9.56% 22.11% 2010 8.95% 10.36% 18.70% Average 5.52% 7.19% 15.3% 43.06% 385.44% 594.44% 21.13% -100.00% -100.00% 48.50% 90.02% 182.19% 37.27% 18.69% 62.92% 41.81% 125.27% 219.47% 26.74% 215.78% 300.23% 34.25% 155.95% 243.61% 24.47% 99.43% 148.22% 23.67% 131.28% 186.03% 15.75% 80.50% 108.94% 30.25% 112.80% 177.17% 36

Table 8 Percent with College Degrees by Group (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 32.69% 36.14% 50.00% 10.55% 38.35% 52.95% 2002 32.80% 33.92% 47.06% 3.41% 38.74% 43.48% 2003 34.14% 34.27% 45.45% 0.38% 32.62% 33.13% 2004 35.25% 35.55% 51.72% 0.85% 45.49% 46.72% 2005 35.63% 35.12% 47.81% -1.43% 36.13% 34.18% 2006 35.37% 33.15% 54.26% -6.28% 63.68% 53.41% 2007 35.70% 35.91% 59.54% 0.59% 65.80% 66.78% 2008 36.63% 33.61% 56.11% -8.24% 66.94% 53.18% 2009 36.90% 32.56% 60.47% -11.76% 85.72% 63.88% 2010 37.91% 31.94% 48.34% -15.75% 51.35% 27.51% Average 35.30% 34.22% 52.08% -3.06% 52.19% 47.54% 37

Table 9 Homeownership Rates by Group (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 76.00% 49.24% 9.09% -35.21% -81.54% -88.04% 2002 77.01% 50.87% 12.50% -33.94% -75.43% -83.77% 2003 77.96% 53.87% 51.19% -30.90% -4.97% -34.34% 2004 78.87% 54.62% 33.33% -30.75% -38.98% -57.74% 2005 77.94% 52.25% 33.80% -32.96% -35.31% -56.63% 2006 77.85% 51.32% 30.77% -34.08% -40.04% -60.48% 2007 78.00% 53.15% 38.59% -31.86% -27.39% -50.53% 2008 77.93% 50.39% 34.80% -35.34% -30.94% -55.34% 2009 76.68% 48.86% 32.16% -36.28% -34.18% -58.06% 2010 76.22% 48.21% 34.16% -36.75% -29.14% -55.18% Average 77.45% 51.28% 31.04% -33.79% -39.47% -59.92% 38

Table 10 Percentage of owners with lot bigger than one acre (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 13.14% 12.27% 0.00% -6.62% -100.00% -100.00% 2002 13.44% 13.30% 0.00% -1.04% -100.00% -100.00% 2003 13.50% 10.27% 13.33% -23.93% 29.80% -1.26% 2004 13.65% 9.94% 6.06% -27.18% -39.03% -55.60% 2005 14.22% 9.46% 16.25% -33.47% 71.78% 14.28% 2006 14.16% 10.03% 11.24% -29.17% 12.06% -20.62% 2007 14.07% 9.82% 15.56% -30.21% 58.45% 10.59% 2008 14.00% 10.55% 10.81% -24.64% 2.46% -22.79% 2009 14.06% 10.56% 6.15% -24.89% -41.76% -56.26% 2010 13.85% 9.59% 9.52% -30.76% -0.73% -31.26% Average 13.81% 10.58% 8.89% -23.39% -15.95% -35.61% 39

Table 11 Average Gross Rent (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2001 $828 $904 $890 9.18% -1.55% 7.49% 2002 $836 $893 $1,105 6.82% 23.74% 32.18% 2003 $881 $966 $1,144 9.65% 18.43% 29.85% 2004 $914 $1,027 $1,296 12.36% 26.19% 41.79% 2005 $950 $1,081 $1,267 13.79% 17.21% 33.37% 2006 $998 $1,100 $1,298 10.22% 18.00% 30.06% 2007 $1,045 $1,206 $1,377 15.41% 14.18% 31.77% 2008 $1,090 $1,229 $1,477 12.75% 20.18% 35.50% 2009 $1,130 $1,289 $1,495 14.07% 15.98% 32.30% 2010 $1,144 $1,245 $1,476 8.83% 18.55% 29.02% Average $982 $1,094 $1,283 11.45% 17.23% 30.65% 40

Table 12 Average Property Value for Owner-Occupied Properties (a) (b) (c) Citizen Non-Movers Non Citizen Non- Movers Non-Citizen Moved from Abroad (a vs. b) (b vs. c) (a vs. c) 2008 $426,941 $451,968 $487,268 5.86% 7.81% 14.13% 2009 $404,639 $393,219 $442,673-2.82% 12.58% 9.40% 2010 $389,650 $392,393 $560,783 0.70% 42.91% 43.92% Average $407,077 $412,527 $496,908 1.34% 20.45% 22.07% 41

(a) Citizen Non-Movers (b) Non Citizen Non- Movers Table 13 Median Property Value for Owner-Occupied Properties (c) Non-Citizen Moved from Abroad (a vs. b) (b vs. c) 2008 $350,000 $370,000 $410,000 5.71% 10.81% 17.14% (a vs. c) 2009 $330,000 $350,000 $400,000 6.06% 14.29% 21.21% 2010 $320,000 $350,000 $350,000 9.38% 0.00% 9.38% Average $333,333 $356,667 $386,667 7.00% 8.41% 16.00% 42

(a) Citizen Non-Movers (b) Non Citizen Non- Movers Table 14 Gross Rent as a Percentage of Income (c) Non-Citizen Moved from Abroad (a vs. b) (b vs. c) 2001 33.62% 30.44% 49.67% -9.46% 63.17% 47.74% (a vs. c) 2002 33.26% 31.18% 40.14% -6.25% 28.74% 20.69% 2003 35.17% 32.21% 35.18% -8.42% 9.22% 0.03% 2004 37.18% 33.75% 37.26% -9.23% 10.40% 0.22% 2005 38.86% 36.46% 38.24% -6.18% 4.88% -1.60% 2006 38.44% 36.33% 40.60% -5.49% 11.75% 5.62% 2007 38.35% 35.63% 36.00% -7.09% 1.04% -6.13% 2008 38.84% 35.15% 33.90% -9.50% -3.56% -12.72% 2009 40.07% 37.32% 36.63% -6.86% -1.85% -8.58% 2010 41.38% 39.14% 38.10% -5.41% -2.66% -7.93% Average 37.52% 34.76% 38.57% -7.35% 10.96% 2.81% 43

(a) Citizen Non-Movers (b) Non Citizen Non- Movers Table 15 Owner Costs as a Percentage of Income (c) Non-Citizen Moved from Abroad (a vs. b) (b vs. c) 2001 26.27% 29.98% 44.00% 14.12% 46.76% 67.49% (a vs. c) 2002 26.14% 28.91% 57.50% 10.60% 98.89% 119.97% 2003 27.34% 30.21% 30.95% 10.50% 2.45% 13.20% 2004 28.10% 33.50% 41.13% 19.22% 22.78% 46.37% 2005 29.21% 34.33% 36.14% 17.53% 5.27% 23.72% 2006 30.40% 35.07% 36.06% 15.36% 2.82% 18.62% 2007 30.82% 36.70% 33.68% 19.08% -8.23% 9.28% 2008 31.10% 37.94% 35.45% 21.99% -6.56% 13.99% 2009 31.83% 36.67% 34.07% 15.21% -7.09% 7.04% 2010 31.73% 37.75% 33.29% 18.97% -11.81% 4.92% Average 29.29% 34.11% 38.23% 16.43% 12.08% 30.49% 44

Table 16 Average Household Income by Immigrant Cohort Year of Entry Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 $83,061 2002 $73,004 $61,682 2003 $72,282 $77,248 $73,376 2004 $73,962 $71,088 $67,853 $58,474 2005 $77,111 $66,074 $77,329 $76,333 $79,820 2006 $70,384 $72,935 $69,886 $69,115 $82,875 $73,955 2007 $80,668 $85,861 $96,386 $89,413 $83,009 $93,200 $102,915 2008 $94,880 $97,201 $95,960 $88,749 $88,264 $84,665 $111,176 $106,517 2009 $83,283 $89,347 $84,750 $88,823 $87,516 $89,533 $86,326 $96,872 $76,425 2010 $89,167 $72,838 $89,173 $80,720 $94,772 $82,432 $88,333 $85,281 $95,670 $82,805 45

Table 17 Median Household Income by Immigrant Cohort Year of Entry Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 $55,300 2002 $60,100 $47,200 2003 $60,240 $62,000 $56,500 2004 $64,600 $52,000 $52,850 $45,450 2005 $60,000 $50,000 $55,000 $60,000 $65,000 2006 $54,000 $52,000 $59,600 $57,000 $56,000 $55,000 2007 $66,700 $65,950 $68,000 $66,150 $64,500 $68,000 $70,200 2008 $71,400 $76,900 $68,650 $55,000 $66,300 $68,530 $75,700 $80,000 2009 $65,900 $66,050 $73,690 $62,250 $73,350 $75,000 $68,200 $70,000 $50,150 2010 $65,300 $61,200 $60,500 $61,700 $62,000 $65,500 $63,000 $66,040 $73,900 $60,000 46

Table 18 Homeownership Rates by Immigrant Cohort Year of Entry Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 43.24% 2002 28.99% 27.50% 2003 34.48% 32.97% 54.76% 2004 40.66% 26.23% 38.33% 31.25% 2005 31.36% 31.32% 31.77% 37.08% 33.33% 2006 34.15% 34.20% 31.71% 26.09% 29.07% 25.23% 2007 39.73% 38.05% 39.05% 36.11% 34.78% 36.71% 38.94% 2008 46.08% 36.00% 33.16% 23.16% 30.99% 28.57% 32.56% 31.19% 2009 39.27% 41.89% 43.27% 39.78% 30.28% 25.76% 25.13% 32.00% 36.96% 2010 49.69% 44.77% 40.52% 30.86% 33.79% 34.74% 27.51% 28.00% 34.92% 36.11% 47

Figure 1: 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Average Household Income 1 2 3 4 5 6 7 8 9 10 Average Income 48

Figure 2: 72000 70000 68000 66000 64000 62000 60000 58000 56000 Median Household Income 1 2 3 4 5 6 7 8 9 10 Median Income 49

Figure 3: 60.00% Homeownership Rate 50.00% 40.00% 30.00% 20.00% Homeownership Rate 10.00% 0.00% 1 2 3 4 5 6 7 8 9 10 50