Does the ethnic gap in homeownership vary by income? An analysis on Dutch survey data

Lower levels of homeownership among immigrant populations have
frequently been related to the particular financial constraints that
immigrant households can face. Various problems have been raised
with this explanation for the ethnic gap in homeownership rates.
This paper responds to these criticisms by sensitizing the financial
constraints explanation to the possibility of differential effects of
ethnicity depending upon level of income. The hypothesis that the
ethnic gap is stronger for lower income groups is tested through
logistic analyses of the housing tenure of Turkish and Moroccan
immigrants and a comparison group of native citizens in the
Netherlands. High-income Turks are revealed to have comparable rates
of homeownership to high-income natives, whereas in low-income
groups a large ethnic gap exists. The ethnic gap in homeownership
among low-income groups could not be explained by other financial
constraints (education, couple’s earning status, parental resources).
Housing preferences and discrimination are possible explanations for
this ethnic gap among low-income households.