Recently, the National Association of Hispanic Real Estate Professionals (NAHREP) released its 2019 state of Hispanic Homeownership Report, which showed that for the fifth year in a row, Hispanics have been leading in homeownership acquisitions. The United States saw 277,000 new Hispanic homeowners last year, which now accounts for more than 80% of the growth in the U.S. Homeownership since 2009.
“Strong gains in household income coupled with an overwhelming drive for homeownership has led to five consecutive years of Hispanic homeownership growth,” said Gary Acosta, NAHREP Co-Founder & CEO. “The youthfulness, work ethic, and resilience of the Hispanic community will play a critical role in the revitalization of America’s post-pandemic economy.”
The Hispanics have continued to be the primary growth drivers in the nation’s housing markets. In 2019, with an addition of 277,000 owner households, the Latinos added a total of nearly 8.2 million new homeowners nationwide, resulting to a homeownership increment to 47.5 percent, despite the many challenges in housing inventory.
Of importance to note, Hispanics were the only group in the country to record an increase in their rate of homeownership for the last five years, which marks the longest period of consistent growth for Hispanics since the 2000s. Over the last ten years, Hispanics have accounted for about 51.6 percent of the overall U.S. net homeownership growth.
Nonetheless, while the non-Hispanics Whites continue to surpass the Hispanics both in wealth gains and homeownership rates among other demographics, Hispanics and other diverse populations continue to be among leaders driving the most growth in homeownership.
It is worthwhile noting that, to this point, the non-Hispanic Whites have contributed to only 1.5 percent of the overall U.S. net homeownership gains over the last ten years. Additionally, the homeownership growth rate among the Hispanics remains a strong upward trajectory, and signs show that the gap between the Hispanics and the non-Hispanic White homeownership is rapidly shrinking. The post-2008-09 financial crisis, 2019, marked the year with the lowest gap in homeownership rates.
Homeownership by State
All across the country, individual states are seeing an increase in their Hispanic homeownership rate. For instance, in 2018, 61.5 percent of the states saw an increase in the Hispanic homeownership, including states like California and New York, where the cost of living has skyrocketed. Take a look at the following graphic;
Homeownership by Age
Like many other groups in the country, a vast majority of the homeowners among the Hispanic community are young and vibrant. As such, homeownership rates are likely to rise in congruent with Hispanic aging. Hispanic homeownership rates increase with age. Between ages 66 and 70, Hispanics have the highest homeownership rate at 65.9 percent.
The Hispanics over 70 have a homeownership rate of 64.6 percent. But more surprisingly, Hispanics surpass both the general populations and the non-Hispanic White population in their homeownership rates for the young adults between the ages of 18 and 21. This suggests that young Hispanics have a strong aspiration for homeownership, which has driven purchases at a tender age.
“The vibrancy of the Latino homebuyer population helped to pull our industry out of recession in 2012 and continues to drive growth in markets all across the United States,” said David Acosta, 2020 NAHREP President. “This year’s report will give the industry a complete picture of Hispanic buyer nuances and geographic concentrations.”
Hispanics have come a long way. Right now, they are among the top wealth drivers in the country, leading in most sectors of the economy. To achieve such stability, homeownership is integral. Wealth creation has to start from homeownership; it’s a central component that, as a community, you cannot do away with.
As such, if you’d like an opportunity to connect with the most qualified industry professionals to help you on your journey towards homeownership, connect with our VIP agents. To check whether we have agents in your county click the following link https://www.thepowerisnow.com/vipagentsservices/. You can also contact me directly for a referral if we do not have an agent in your area. Stay up to date with current real estate news and housing developments, by visiting our blogs page at https://www.thepowerisnow.com/blog/ daily. If you’d like to set an appointment and speak to me directly, use the following link, https://calendly.com/thepowerisnow/ericfrazier.
Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent views of First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier MBA is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.frazier@fbol.com. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.
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