Language proficiency and homeownership: Evidence from U.S. immigrants

Marc-André Luik, Max Friedrich Steinhardt and Simon Voss

Journal of Housing Economics, 2025, vol. 68, issue C

Abstract: In this paper, we deliver the first causal evidence on the relationship between immigrant host-country language proficiency and homeownership. Using an instrumental variable strategy, we find a substantial positive impact of language skills on the propensity to own a home and the quality of housing among immigrants in the United States. While this effect is mediated by household income, our estimates also speak in favor of a direct language effect. Suggestive evidence further indicates that part of this effect may be driven by discrimination. Our results highlight the importance of host-country-specific human capital and, in particular, language proficiency for socio-economic assimilation in housing markets.

Keywords: Housing; Homeownership; Language; Immigrants; Assimilation (search for similar items in EconPapers)
JEL-codes: J15 J61 R21 Z13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:68:y:2025:i:c:s1051137725000269

DOI: 10.1016/j.jhe.2025.102067

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