Immigrants see foreclosure on the American Dream

The idea of a home of one's own has long been glorified as the American dream for generations. Immigrants have long clamored for a piece of the proverbial pie, and contemporary foreigners from South and Latin America continue the history.

However, a study done by the Pew Hispanic Center found that while America is a cultural melting pot, foreclosure rates are not. According to multiple regression analysis of foreclosure rates by county the rates are actually strongly correlated with the size of the immigrant population in a county. The larger the share of immigrants in a county, the more foreclosures there are.

Foreclosure rates are also not color-blind. Foreign born Latinos account for a far greater share of foreclosures than any other immigrant group.

While there are many potential reasons for this, there is not one direct cause for this. Maybe immigrants are just riskier borrowers. Another possibility raised by the Pew Hispanic Center is that immigrants may have been attracted to the boomiest areas of the countries. The study said that housing booms, in particular, may be especially good at attracting immigrants because they have many low-skill.

Another potential reason cited by Lora Mwaniki-Lyman, a research economist for the Eller School of Business Management, is that immigrants may not be as well versed in legality, and can be easily mislead by the complex contracts. They are also not as able to find legal help, due to costs and language barriers.

Tucson Ethnic Markets Show Trends in Population

A table full of bright yellow turmeric and emerald green sprigs of dried mint adorn the back table of Jasmine's Market at the intersection of Campbell Avenue and Grant Road. A pyramid of twenty pound burlap sacks full of basmati rice grace the front of the store. Red, yellow, and green cans of hummos and fava beans sit on industrial metal shelves. The aroma of honey-soaked baklava wafts from the back room while paintings of Egyptian markets and the Nile decorate the wall behind the cash register.


Ethnic markets and groceries are a significant source of food in the United States. A study released by Iowa State University in 2005, found that Americans spends an average of nearly fifteen percent of grocery money in ethnic food markets.

“I think that a lot people come here to try something different,” said Sukanya Bhat, the owner of India Dunkaan, an Indian grocery store at 2754 N. Campbell Avenue, as she leaned on the counter above a large selection of dusty Indian movies. “They try something at an Indian restaurant and want to make it at home.”
The growth of ethic markets in Tucson shows the growing numbers of other ethnic groups settling in the area.
"When people come to a new country and start earning money, the businesses in the area have to cater to them," said Lora Mwaniki-Lyman from the Eller College of Business Management.
Amer Said from Jasmine's Market also attributes the flow of international students from the University of Arizona to the popularity of the ethnic markets. “We get a lot of students in here looking for food that they got in there native countries,” Said said on a warm Tuesday afternoon at his market. “I've had Lebanese kids in here homesick for baklava and labneh and they are so glad that we stock it.”

Latina's Getting the Ball Rolling in Business

After speaking to Lea Marquez-Peterson , the president of the Tucson Hispanic Chamber of Commerce as well as two economic researchers from the Eller College of Business who run the Border Economics program, I learned that Latina entrepreneurs are taking the lead in opening new businesses.

From 1997 to 2006, the number of Latina-owned firms increased by 121%, according to a study by the Center for Women's Business that analyzed census data.

According to the the CWB's Current State of Business Report:

Women of color are starting businesses at rates three to five times faster than all other businesses. However, once in business, their growth lags behind all other firms. Businesses owned by women of color are a substantial economic force. The Center for Women's Business Research's biennial update of the number, revenues and employment trends for these businesses was released at the symposium. The findings, underwritten by Wells Fargo, showed strong growth. Between 2002 and 2008, the number of such firms increased by 32 percent, their revenues by a dramatic 48 percent, and their employment by 27 percent. The Center estimates that as of 2008 there are 1.9 million firms owned by women of color, employing 1.2 million workers and bringing in $165 billion in revenues. Women of color comprise 26 percent of all women-owned firms.

According to Vera Pavlakovich-Kochi, a research economist with the Eller College of Business and Management, there are several reasons for this:

-All women, especially Latina’s are getting college degrees at the highest rate ever seen in this country, leading to increased wealth

-Many Latina’s are coming from countries which are not as friendly to female entrepreneurs as the United States, so once they are here, they see the opportunity to distinguish themselves

-Once the ball gets rolling and these women start companies, this leads to more women in the community taking the initiative

Because of the influx of women owned businesses, banks and investors are taking notice. Below is a video of business conference which was held to help Latina’s find the resources to start their own businesses.

Hispanic Business Boom

According to a study done by Hispanic Business Magazine, the number of Hispanic-owned businesses in the United States is expected to grow 41.8 percent in the next six years to 4.3 million, with total revenues surging 39 percent to more than $539 billion.

After talking to the President of the Hispanic Chamber of Commerce, Lea Marquez-Peterson, I learned that Hispanic-owned businesses were growing faster than any other group in the United States. I also learned that Latina's were outnumbering men in starting up new businesses. She said there were several reasons for the growth of Hispanic-owned businesses:

-there are more educational opportunities available, and more people (especially women) are getting the information they need to start and run a business
-the massive rise in unemployment has made it harder to find jobs so many have decided to just start their own businesses
-right now is a great time to start a business if the person is prepared, because real estate is low and there are many out-of-work employees

She also said that many established business are using this time to expand. One of Tucson’s landmarks, El Charro has revamped one of its stores to turn it into Sir Vezas, which seeks to attract a younger crowd.