According to the 2018 State of Hispanic Homeownership Report from the National Association of Hispanic Real Estate Professionals (NAHREP), Hispanics are fueling homeownership growth in the U.S.
The report finds that Hispanics represent 62.7 percent of the increase in the U.S. net homeownership rate from 2008 to 2018, 81 percent of the U.S. labor force growth, and 32 percent of U.S. household formations.
“Hispanic household growth continues to outpace that of the overall U.S. household growth and is anticipated to do so for the foreseeable future,” according to the report. Overall, the U.S. homeownership rate among the Hispanic population grew to 47 percent in 2018, marking the largest net gain since 2005.
“Despite concerns about housing inventory and changing government policies related to homeownership, the leading indicators, such as household formation, income trends, age and consumer sentiment, suggest that Hispanics will continue to drive homeownership gains in America,” the report claims.
The Urban Institute predicts that Hispanics will account for more than half of all new homeowners over the next several years and 56 percent of all new homeowners by 2030.
The states and territories with the highest homeownership rates of Hispanics include Puerto Rico (68.56 percent), New Mexico (65.5 percent), Texas (56.86 percent), Wyoming (56.63 percent), and Michigan (56.13 percent).
- Household formation: Hispanics formed 485,000 new households in 2018, accounting for 32.4 percent of total U.S. household formations. Between 2015 and 2025, U.S. Hispanic households are projected to increase by 4.6 million.
- Population trends: At 58.9 million people, the Hispanic population represents 18.1 percent of the overall U.S. population. Hispanics are the nation’s largest ethnic minority and have accounted for more than half of total U.S. population growth since 2000, according to the report.
- Household composition: With an average 3.7 persons per household, Hispanic households tend to be larger than the U.S. average of three. A higher percentage are also multigenerational.
- Income trends: The Hispanic median household income grew to $50,486 – the largest increase in income among all racial or ethnic population groups.
Source: “2018 State of Hispanic Homeownership Report,” National Association of Hispanic Real Estate Professionals (April 9, 2019)
© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688