This week, we have been introducing what we believe will be five mid-to-long-term opportunities in real estate over the next few years. Today is #3 – The Hispanic Segment of the Market. – The KCM Crew
To begin, we want to be sensitive to the feelings of all Americans who trace their roots to Spanish-speaking countries. We realize that the more than 50 million Latinos in the U.S. have many different cultures rather than a common culture (more on this). However, for the sake of this blog post we will use the words Hispanic or Latino to identify those recognized as having a heritage originating in a Spanish-speaking country.
We believe that there is a tremendous opportunity in helping the Hispanic population with all of their housing needs as we move forward. Let’s explain why.
The Opportunity
One in six Americans are currently of Latino decent and that number will continue to grow over the next decade. In a Pew Research Report last month, they explained that Hispanics are already the largest minority in the country and this segment of population is the fastest growing:
“Hispanics are the nation’s largest minority group, representing 16.4% of the U.S. population. By comparison, non-Hispanic blacks, who are the nation’s second largest minority group, represent 12.3% of the nation’s population and non-Hispanic Asians rank third at 4.7%.”
“Hispanics are also … one of its fastest growing populations. According to the Census Bureau, Hispanic population growth between 2000 and 2010 accounted for more than half of the nation’s population growth.”
This segment of the population also truly believes in homeownership. In the National Association of Hispanic Real Estate Professionals’ (NAHREP) most recent report, State of Hispanic Homeownership, the organization explains:
“For Latinos, homeownership represents a highly motivating source of pride and accomplishment. It provides the means to accumulate wealth and enhances a family’s capacity to achieve higher levels of education and income. Homeownership also embodies the promise of greater control over one’s living environment, and provides the basis for positive social and economic outcomes, including stability, security, and improved neighborhood amenities. In particular, 85 percent of Latinos consider a home of one’s own a good place for raising children and providing them with a good education.
Latinos also consider homeownership a reliable, long-term savings vehicle, and the primary source of wealth to pass along to their children. They consider home equity an excellent source to borrow against in order to send their children to college, start businesses, and supplement retirement.”
Obviously, any large segment of the population with a strong belief in homeownership is an opportunity for any real estate professional that is willing to help this demographic attain their real estate goals.
Why Act Now?
Numbers in the NAHREP report show us that the increase in Latino homeownership has outpaced any other minority and even non-Hispanic white homeownership in the past decade.
“Latinos accounted for more than half the growth in the country over the last decade…Because of more home purchases by the younger and larger Hispanic population, Hispanic homeownership increased from 46.0 percent to 47.5 percent during the past decade, rising more sharply than total minority and non-Hispanic White homeownership.”
An article in Forbes explains that Hispanics will account for up to fifty percent of first time home buyers in the next ten years:
“Predictions indicated that between now and 2020, Hispanics – the second largest ethnic group in America — will account for 50 percent of new buyers. Currently, 75 percent of first time buyers are white while Hispanic home buyers constitute 11 percent, a 38 percent increase over 2010 figures. And as their purchasing power increases, a “mega rise” may be on the way.”
The NAHREP report shows it won’t just be first time buyers who will impact the housing market over the next decade.
“Hispanics are expected to account for 40 percent, or 4.8 million, of the estimated 12 million net new households within the next 10 years.”
Again, we believe that this segment of the market shows great opportunity over the next few years.
The 5 Things You Must Do to work this demographic.
- Learn how large the Hispanic population is in your state and county by visiting here
- Think about adding a bilingual agent to your team of professionals
- Read surveys and news items concerning the Hispanic population at The Pew Hispanic Center
- Consider becoming a member of the National Association of Hispanic Real Estate Professionals
- Become a member of Keeping Current Matters. Our monthly reports are also available in Spanish.
