Growth in homeownership is coming on strong from Hispanic homebuyers, according to a new report.
The Hispanic Wealth Project recently released a report finding the homeownership growth rate among Hispanics outpaces every other racial demographic, citing data from the Census Bureau’s Housing Vacancies and Homeownership Survey. By the end of 2015, there was a net increase of 245,000 Hispanic households, comprising 69 percent of the total net growth of homeowners in the nation.
To say this sector of the market is important is an understatement. Every other major population group saw a decrease in homeownership growth by nearly 1 percent or more during the same time period studied, which was between the fourth quarter of 2014 and the fourth quarter of 2015.
Since 2000, the rate of Hispanic homeownership growth has jumped 52 percent, according to the report. And in 2015, the U.S. Hispanic population grew 1.6 million annually to a toal of 57 million — meaning Hispanics make up 18 percent of the nation’s population.
Throughout the U.S., three states in particular saw the highest Latino population: California, Texas and Florida. These states are home to a respective 15 million, 10.4 million and 4.8 million Latinos. All together, these three states comprise more than 55 percent of the nation’s entire Latino population.
Bigger incomes, more opportunity
The Hispanic population has considerably lowered its poverty rate, and as of 2014 it was reported at 23.7 percent. For two years in a row, the Hispanic popluation saw both a decrease in the poverty rate and an increase in annual household income.
From 2012 to 2014, the annual median income for Hispanic households went up 7.3 percent to $42,491. And by 2014, 43 percent of Hispanic households were bringing in more than $50,000 annually.
The next generation up to bat for homeownership comprises 21 percent Hispanics. The millennial generation is 72.2 million strong, and 15.1 million of them are Hispanic.
This group is not only very tech-savvy, but they are family-centric and likely to be looking for a home with a high rate of walkability and quality of life. The age group, regardless of demographic, is interested in living in an area close to school, work, shopping, restaurants and parks.
Second-generation Hispanics have reached a 50 percent rate of homeownership, and these individuals are more likely to earn higher wages and purchase a home faster than expected
