Social, economic, and cultural factors that historically have limited the housing choices of southern and eastern European immigrants to the United States and have influenced the development of ethnic neighborhoods in American cities are reviewed in this paper. Difficulties that non English speaking, relatively uneducated immigrants had in adapting to American society are described. The absence of traditional village and family structures are cited as contributing to personal and family disorganization among immigrants. The inability of the American welfare and social service system to accommodate large influxes of urban immigrants is also discussed. Demographic information (including educational level, household ownership, home value, and rent paid) on various ethnic groups in Chicago is presented in order to illustrate features of social and family life among immigrants and their descendants. It is suggested that many of the current problems of American cities have come about from the poor assimilation of immigrant groups, and that if satisfactory means are not discovered for dealing with new waves of immigrants, negative social consequences will continue to occur. (GC)