The largest one year spike in more than a decade
The Hispanic Wealth Project, in collaboration with the National Association of Hispanic Real Estate Professionals (NAHREP), revealed data recently in their State of Hispanic Home-ownership Report that shows an increase in both Hispanic home-ownership rates and in the number of owner Hispanic households while overall U.S. home-ownership rates have declined for the 12th consecutive year.
According to the U.S. Census Bureau, the Hispanic home-ownership rate averaged 45.6 percent in 2015, two-tenths of a percent higher than in 2014, however in the 12 months ending this past December, the increase was much more dramatic, surging from 44.5 percent to 46.7 percent – the largest one year spike in more than a decade.
“The Hispanic home-ownership numbers were very encouraging and all leading indicators strongly suggest that the trend will continue,” said Joseph Nery, NAHREP 2016 president, “Policy makers and the housing industry need to recognize that the face of home-ownership in America has changed and it is in everyone’s interest to ensure that these new consumers have access to relevant lending products, affordable housing stock and culturally competent service providers in the coming years.”
In addition, the report showed that Latinos also led the nation in workforce participation and household formation growth which indicates that Hispanics will likely be the primary driver of new homeowners for the next decade and beyond.
Industry leaders recognize the significance of Hispanic homebuyers to the nation’s economy:
“The State of Hispanic Home-ownership should be required reading by everyone in housing, especially lenders and realtors,” said David Stevens, president and CEO Mortgage Bankers Association, “The Latino community is massive, it’s ready to own, and it’s now. The significance of Hispanics to housing and the economy will only grow, creating opportunity for all who focus on this vibrant, dynamic, and impactful part of the U.S. economy.”
“The (report) highlights how important the Hispanic population has become in driving overall housing demand in the US, and how this influence will only continue to grow as their share of the population increases,” said Chris Herbert, managing director, Harvard Joint Center for Housing Studies, “Crafting housing policies that are attuned to meeting the needs of this important demographic group is essential to ensure they have access to decent and affordable housing.”
The report highlights data that shows a comparative analysis of the past year and since 2000. It specifically analyzes demographic and economic trends that shape the home-ownership market, including the cultural nuances and purchase habits of Latino home buyers.
It also identifies major barriers to Latino home-ownership such as the need for improved access to affordable mortgage credit, the need to substantially increase the number of culturally competent professionals in the industry and policies that address the shortage of housing inventory in many major markets.
NAHREP, a nonprofit 501(c) 6 trade association, is dedicated to advancing sustainable homeownership among Latinos by educating and empowering the real estate professionals who serve them. NAHREP is the premier trade organization for Hispanics and has more than 20,000 members in 48 states and 35 affiliate chapters.