The Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals (NAHREP) recent report on the State of Hispanic Homeownership shows an increase in Hispanic homeownership rates while overall U.S. homeownership rates have declined for the twelfth consecutive year.
According to the U.S. Census Bureau, the Hispanic homeownership rate averaged 45.6 percent in 2015, two-tenths of a percent higher than in 2014. In 2015 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 homeownership 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 homeownership 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 Homeownership 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 State of Hispanic Homeownership 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 State of Hispanic Homeownership Report highlights data that provides a comparative analysis of the past year and since 2000. It specifically analyzes the demographic and economic trends that shape the homeownership market, including the cultural nuances and purchase habits of Latino home buyers.
The State of Hispanic Homeownership Report also identifies major barriers to Latino homeownership 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.
As a result of the report’s findings, NAHREP issues its 2016 policy priorities which it will share with legislators during Congressional Hill visits at its policy conference on Thursday, March 17.
