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

29

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

30

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%

31

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%

32

Table 3

Average Household Size by Group

(a)

Citizen

Non-Movers

(b)

Non-recent

Immigrants

(c)

New Immigrants

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 2.48 3.39 2.55 36.69% -24.78% 2.82%

2002 2.5 3.43 4.31 37.20% 25.66% 72.40%

2003 2.51 3.49 4.11 39.04% 17.77% 63.75%

2004 2.53 3.4 3.9 34.39% 14.71% 54.15%

2005 2.46 3.49 3.82 41.87% 9.46% 55.28%

2006 2.39 3.37 3.46 41.00% 2.67% 44.77%

2007 2.39 3.39 3.82 41.84% 12.68% 59.83%

2008 2.38 3.35 3.62 40.76% 8.06% 52.10%

2009 2.35 3.38 3.47 43.83% 2.66% 47.66%

2010 2.37 3.48 4.07 46.84% 16.95% 71.73%

Average 2.44 3.42 3.71 40.16% 8.48% 52.05%

33

Table 4

Average Household Income by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 $78,631 $75,915 $44,209 -3.45% -41.77% -43.78%

2002 $81,841 $78,162 $50,669 -4.50% -35.17% -38.09%

2003 $82,671 $78,125 $84,634 -5.50% 8.33% 2.37%

2004 $85,998 $79,495 $66,074 -7.56% -16.88% -23.17%

2005 $87,533 $79,480 $74,772 -9.20% -5.92% -14.58%

2006 $90,570 $82,291 $84,844 -9.14% 3.10% -6.32%

2007 $96,557 $89,519 $105,767 -7.29% 18.15% 9.54%

2008 $99,700 $91,667 $109,288 -8.06% 19.22% 9.62%

2009 $99,504 $88,990 $91,368 -10.57% 2.67% -8.18%

2010 $97,280 $86,262 $98,763 -11.33% 14.49% 1.52%

Average $90,029 $82,992 $81,039 -7.82% -2.35% -9.99%

34

Table 5

Median Household Income by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 $60,040 $59,075 $22,000 -1.61% -62.76% -63.36%

2002 $63,100 $62,000 $45,700 -1.74% -26.29% -27.58%

2003 $64,800 $62,000 $66,810 -4.32% 7.76% 3.10%

2004 $67,000 $61,000 $47,000 -8.96% -22.95% -29.85%

2005 $66,001 $60,000 $64,500 -9.09% 7.50% -2.27%

2006 $69,400 $63,000 $56,500 -9.22% -10.32% -18.59%

2007 $72,200 $67,000 $71,100 -7.20% 6.12% -1.52%

2008 $75,335 $66,550 $79,900 -11.66% 20.06% 6.06%

2009 $75,000 $68,600 $57,900 -8.53% -15.60% -22.80%

2010 $73,200 $65,020 $70,835 -11.17% 8.94% -3.23%

Average $68,608 $63,425 $58,225 -7.55% -8.20% -15.13%

35

Table 6

Labor Force Participation Rate by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 64.27% 68.72% 71.43% 6.92% 3.94% 11.14%

2002 64.38% 71.27% 41.18% 10.70% -42.22% -36.04%

2003 65.09% 67.45% 56.82% 3.63% -15.76% -12.71%

2004 64.45% 69.70% 39.66% 8.15% -43.10% -38.46%

2005 64.24% 70.63% 43.90% 9.95% -37.85% -31.66%

2006 64.99% 71.93% 54.71% 10.68% -23.94% -15.82%

2007 64.49% 70.90% 53.76% 9.94% -24.17% -16.64%

2008 66.40% 73.66% 60.63% 10.93% -17.69% -8.69%

2009 66.48% 72.79% 55.23% 9.49% -24.12% -16.92%

2010 66.04% 72.78% 58.29% 10.21% -19.91% -11.74%

Average 65.1% 71.0% 53.6% 9.06% -24.51% -17.67%

36

Table 7

Unemployment Rate by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 4.32% 6.18% 30.00% 43.06% 385.44% 594.44%

2002 5.82% 7.05% 0.00% 21.13% -100.00% -100.00%

2003 5.67% 8.42% 16.00% 48.50% 90.02% 182.19%

2004 5.34% 7.33% 8.70% 37.27% 18.69% 62.92%

2005 4.52% 6.41% 14.44% 41.81% 125.27% 219.47%

2006 4.30% 5.45% 17.21% 26.74% 215.78% 300.23%

2007 4.38% 5.88% 15.05% 34.25% 155.95% 243.61%

2008 4.21% 5.24% 10.45% 24.47% 99.43% 148.22%

2009 7.73% 9.56% 22.11% 23.67% 131.28% 186.03%

2010 8.95% 10.36% 18.70% 15.75% 80.50% 108.94%

Average 5.52% 7.19% 15.3% 30.25% 112.80% 177.17%

37

Table 8

Percent with College Degrees by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(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%

38

Table 9

Homeownership Rates by Group

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(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%

39

Table 10

Percentage of owners with lot bigger than one acre

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(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%

40

Table 11

Average Gross Rent

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(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%

41

Table 12

Average Property Value for Owner-Occupied Properties

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(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%

42

Table 13

Median Property Value for Owner-Occupied Properties

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2008 $350,000 $370,000 $410,000 5.71% 10.81% 17.14%

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%

43

Table 14

Gross Rent as a Percentage of Income

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 33.62% 30.44% 49.67% -9.46% 63.17% 47.74%

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%

44

Table 15

Owner Costs as a Percentage of Income

(a)

Citizen

Non-Movers

(b)

Non Citizen Non-

Movers

(c)

Non-Citizen Moved from

Abroad

Percentage Difference

(a vs. b)

Percentage Difference

(b vs. c)

Percentage Difference

(a vs. c)

2001 26.27% 29.98% 44.00% 14.12% 46.76% 67.49%

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%

45

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

46

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

47

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%

48

Figure 1:

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

1 2 3 4 5 6 7 8 9 10

Average Household Income

Average Income

49

Figure 2:

56000

58000

60000

62000

64000

66000

68000

70000

72000

1 2 3 4 5 6 7 8 9 10

Median Household Income

Median Income

50

Figure 3:

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

1 2 3 4 5 6 7 8 9 10

Homeownership Rate

Homeownership Rate