Hispanic Homeownership Growth Bucks National Trend

Hispanics are earning more money, becoming better educated, and forming households at a faster pace than any other demographic, according to the 2016 State of Hispanic Homeownership Report. They also continue to demonstrate a strong desire for homeownership and we can expect the rate to rise. The Hispanic community is already responsible for 75 percent of the country’s recent homeownership growth. In fact, while the overall homeownership rate declined to its lowest in more than 50 years, the Hispanic homeownership increased from 45.6 percent in 2015 to 46.0 percent in 2016. keep reading

Hispanic homeownership on the rise

There’s been much focus on millennials and their importance on the housing market, but when we look at where homeownership growth has been the strongest, it’s among Hispanics, including Hispanic millennials.

In fact, 2015 marked the fifth consecutive year that Hispanic homeownership has been on the rise, according to the recently released State of Hispanic Homeownership Report. Since 2000, Hispanics have accounted for 52 percent of the growth in U.S. homeownership. And, the Urban Institute predicts Hispanics will account for more than half of new homeowners by 2030.

Over the past 15 years, Hispanics achieved a net gain of 2.8 million homeowners— a growth rate of 67 percent. Conversely, among non-Hispanic White homeowners we find that there are now 85,000 fewer than in 2000. The demand for homeownership remains strong as well, with 67 percent of Hispanics preferring homeownership to renting.

“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.

While Hispanic millennials are well positioned to buy sooner than expected because of their higher incomes and levels of education, the report also highlights barriers to homeownership for Hispanics, including access to affordable mortgage credit and saving for a down payment. keep reading