Hispanics have a strong influence in homeownership,
exceeding national statistics as they purchase homes at an increased rate for
the second consecutive year.
According to the National Association of Hispanic Real
Estate Professionals’ (NAHREP) recently released 2016 State of Hispanic
Homeownership Report, the Hispanic homeownership rate increased to 46 percent
last year, in spite of a decreasing overall rate of homeownership across the
nation. The Hispanic homeownership rate
was 45.6 percent for 2015 and 45.4 percent in 2014. Over 7.3 million Hispanic households owned
their homes in 2016, with 330,000 new households added – 38 percent of all
households formed.
The drivers that are compelling Hispanics to purchase a home
are the pursuit of the American Dream and the fact that the majority of
Hispanics view homeownership as a viable investment vehicle for building
wealth, as well as the ideal for raising children. “The significance of a
strong desire for homeownership cannot be overstated,” the report states. “Where there is a will, there is generally a
way.”
More members of the real estate industry are also working to
meet the unique needs of Hispanic homebuyers, particularly in terms of
obtaining financing. “While the Hispanic
market has outgrown the ‘niche’ segment designation, the housing industry is
just beginning to fully recognize its significance to the vitality of the
overall market and is responding with products and services that are more
relevant to the needs of Hispanic consumers,” states the report, citing recent
initiatives spear-headed by Bank of America, Fannie Mae and Freddie Mac, and
Wells Fargo.
Some hurdles to Hispanic homeownership, such as financing
and a lack of knowledge regarding Hispanic cultural norms amongst members of
the housing industry, still exist.
“Hispanics tend to reside in a multigenerational household of a typical
nuclear family and include additional family members like grandparents or other
adult relatives, all of whom contribute to household expenses,” the report
states. “These influencing factors are
interconnected with their culture and affect how they bank…Access to culturally
competent real estate and mortgage professionals who speak Spanish and can recommend
appropriate solutions to meet their needs creates a level playing field.”
For real estate professionals, Hispanics signify a
sustainable and massive opportunity.
Ninety percent of Hispanics favor owning a home over renting one in the
future, and 62 percent are more likely to purchase a home than rent one upon
their next move. In 2016, Hispanics had
a purchasing power of $1.4 trillion – a number that will continue to grow as
incomes and Hispanic-owned businesses increase and expand.
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