The National Association of Hispanic Real Estate Professionals’ recently released their The State of Hispanic Homeownership Report. The 24-page document offers an update on the Hispanic homebuyer market and traces Hispanics’s rise in household formations and reveals the variables that make them homeownership-ready and able to drive demand in the current homebuyer market.
According to the report, Hispanics continue to lead the surge in U.S. homeownership and accounted 51% of the total net increase of owner households. The number of Hispanic homeowners grew from 4.24 million in 2000 to 6.69 million in 2012, a remarkable increase of 58 percent at a time when the rest of the U.S. population saw a net increase of only 5 percent.
Some of the key statistics highlighted in the report include:
Hispanics continue to lead population growth in America. Hispanics have accounted for more than half of the U.S. population increase over the past decade. Every month, 50,000 young Hispanics reach the age of 18. More notably, Hispanics dominate household growth. Over one million Hispanic households were formed in 2012, compared to a decrease of 704,000 non-Hispanic White households.
Forty percent of Hispanic households earned over $50,000. Hispanic households earning more than $50,000 are growing at a faster rate than that of the total number of U.S. households.
Surveys show they remain passionate about homeownership. Fifty-six percent of Hispanics said that a major reason to buy a home was because it represents a symbol of success or achievement, compared to only 32 percent of all Americans.
Realizing the impact the Hispanic population will have on real estate in the future is crucial. Mike Fratantoni, Vice President of Research and Economics for the Mortgage Bankers Association explains:
“It is critical to understand the demographic trends which are likely to impact housing demand in the years ahead. This report provides information for lenders, builders, and policymakers regarding the future shape of housing demand, which will be substantially impacted by the housing choices of Hispanic households.”