A majority of Hispanic Americans now own a home, a milestone that was reached in part thanks to demographics and income growth.
(Bloomberg) — A majority of Hispanic Americans now own a home, a milestone that was reached in part thanks to demographics and income growth.
The ownership rate among the group rose 4 percentage points in ten years to top 50%, according to a report by the National Association of Realtors. It means almost 3 million more Hispanics owned a home in 2021 than in 2011.
The rate for Hispanics remains well below the national average of 65.5% — and that of White Americans, at 72.7%. Owning a home is a major factor of building wealth over a lifetime. Lower ownership rates among minorities, who often face racial disparities in the mortgage market, has been source of widening inequalities for generations in the country.
The growth in Hispanic homeownership was boosted in part by the rising number of people reaching prime home-buying years.
Latino buyers have a substantially higher level of income than any other groups, the NAR report also found. They are younger than White and Black owners, and are more likely to be married and to opt for a multi-generational home with greater square footage.
“One of the biggest factors in Latino homeownership is basic demographics,” said Rick Arvielo, co-founder and chief executive officer of mortgage lender New American Funding. “Not only does the population of Latinos in America keep growing but their age skews younger.”
By 2030, an estimated 56% of all new homeowners will be Hispanic, according to a Freddie Mac report.
Half of Hispanic home buyers hold at least a Master’s or professional degree, a bigger share than anyone else, according to the NAR report. About 70% have at least two income earners in the household, also higher than the other demographic groups.
“The relationship between education and income is strong,” said Nadia Evangelou, NAR’s director of real estate research. “Educational obtainment among Hispanics has been changing rapidly.”
The US Census Bureau recently also found that the median income of Hispanic households was 12% higher than it previously calculated, based on novel research. Should this experimental measurement hold, it may have helped some afford a home.
The homeownership rate for Hispanic Americans varies widely by state in the NAR report. The highest ones are in West Virginia, New Mexico, and Vermont.
The NAR survey is based on 4,854 responses from primary-residence buyers.
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