Housing Attainment of Immigrants from the former Soviet Union in Israel: A Cost/Benefit Approach

The present study examines the extent that national housing policy and demographic and human capital factors affect the odds of homeownership and quality of housing. A cost/benefit theoretical conceptualization with a sample of 19 000 Russian immigrants who arrived in Israel in 1989-90 was used to examine how the benefits of homeownership (location, size and pricing) 'stood against' a set of costs (commuting time required, housing age and size). A set of demographic and human capital factors were employed to control for socio-economic effects such as age, gender, family size, labour force participation and occupational status. The benefits of homeownership for immigrants in Israel also proved to involve some costs: migrating to smaller localities and commuting to metropolitan areas where occupational opportunities are higher. The findings suggest that while homeownership is widespread, it imposes a burden on new immigrants as well. This implies that social policy with regard to housing, especially low-priced housing, should consider the possibility of expanding public and market services in an appropriate way that will increase social inclusion and lessen the likelihood of structural segregation.