A Different Path to Homeownership: The Case of Taiwanese Immigrants in Los Angeles

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Taiwanese immigrants in Los Angeles stand in contrast to the well-documented homeownership deficit among immigrants. Despite the tremendous growth in Taiwanese immigrants during the 1980s, the Taiwanese homeownership rate was not only among the highest of all ethnic groups in 1990, but also recorded a phenomenal increase of 16 percentage points between 1980 and 1990. This paper examines this trend and assesses the contributing factors. It reveals that (1) education and wealth were contributors to Taiwanese high homeownership; (2) Chinese immigrants in general and Taiwanese immigrants in particular had endowment-adjusted homeownership rates well above that of non-Hispanic whites, while the ways in which ethnic Chinese immigrants achieve high homeownership were reflective of their distinctive paths of immigration; (3) surprisingly, higher English proficiency, an indicator of acculturation, was negatively associated with Taiwanese homeownership; (4) the large rise in Taiwanese homeownership in the 1980s was largely contributed to by young, highly educated, newly arrived Taiwanese with a low level of income and a high level of wealth. Findings refute the hypothesis that immigrants are always plagued by homeownership deficits. Well-off immigrants, such as the Taiwanese, may have followed a path of assimilation not yet documented in the literature; acculturation and social adaptation may no longer be preconditions for their economic integration. The arrival of well-off immigrants has a significant potential to bolster regional demand for owner-occupied housing.