Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
The gap between home values for Hispanic and white homeowners is now the smallest on record, as Hispanic homeowners have made strides over the past two years to recover from pandemic setbacks, according to a Zillow analysis released Monday.
Currently, the typical Hispanic-owned home is valued 11.9 percent less than that of non-Hispanic white households, down from 12.1 percent last year and 12.4 percent in December 2021.
Zillow Economic Research
Zillow’s analysis also shows a modest narrowing of the home value gap for Black homeowners, down to 17.7 percent from 17.9 percent last year. However, the gap remains wider compared to mid-2022 (17.2 percent) and pre-housing crash levels in 2007 (16.3 percent).
Following the 2007–2009 financial crisis, the home value gap for Hispanic homeowners reached a high of 18 percent in 2012, as many minority communities were hit hard by foreclosures. Despite this, these communities are now rebounding.
“Homeownership stands as a cornerstone for building wealth, yet systemic barriers have unfairly hindered many people of color from acquiring homes valued comparably to those of their white counterparts,” Zillow Senior Economic Research Scientist Treh Manhertz said. “Efforts to improve access to down payment assistance, credit-building programs, zoning reforms, and affordable housing construction and preservation in desirable areas are key initiatives to help this progress continue.”
Similar to homeowners of other ethnicities, much of Hispanic homeowners’ wealth is tied to their primary residence. Zillow reports positive movement toward equity at a local level, with two-thirds of the nation’s 100 largest metro areas seeing a decrease in the home value gap for Hispanic homeowners, particularly in Florida markets, including Miami, Orlando and Tampa.
In 31 of the 40 largest metros with gaps larger than the national average, the divide shrunk more than the national rate. Los Angeles, which has the largest gap at 32 percent, saw it shrink by 0.75 percentage points over the past year. Bridgeport, Connecticut, with a 28.5 percentage gap, saw a similar reduction.
Despite these strides, homeownership remains a challenge for Hispanics. According to Zillow’s 2024 Consumer Housing Trends Report, 18 percent of prospective buyers are Hispanic, but only 13 percent successfully purchased homes.
They also face higher fees, averaging $2,812 compared to the national average of $2,072, and a mortgage denial rate of 18.8 percent, compared to 10 percent for non-Hispanic whites, often due to high debt-to-income ratios.
