Hispanic Homeownership Sees Continued Growth Despite Market Challenges
2020 marked the beginning of large-scale, consistent market fluctuations, but despite that, the Hispanic homeownership rate has continued to rise. The National Association of Hispanic Real Estate Professionals (NAHREP) has released its annual report for 2022. See the full report.
Five Key Takeaways for Hispanic Homebuyers
Latino Homeownership Continues to Rise, Rapidly
Hispanic homeownership has increased by 2.3 million since 2014, reaching 48.6%. 2022 itself saw the largest growth in homeownership in over a decade. Today there are now over 9.2 million Hispanic homeowner households.
Hispanic homeownership rates have increased for nearly a decade, creating a sizeable gap. The rate for Hispanic homeownership is now 25.8% points lower than the non-Hispanic White homeownership rate of 74.4%.
The Youngest Homebuying Generation
On average, Latinos make up the youngest homebuying generation with 70% of homebuyers falling under the age of 45. This compares to 64% of the general population and 61% of non-Hispanic White buyers.
Latinos Are More Mortgage-Ready
Latinos have been found to take up the largest share of near mortgage-ready individuals from any racial group at 2.8 million potential buyers. Large metropolitan areas with dense Latino populations, such as Los Angeles, New York, and Miami, see the highest number of mortgage-ready Latinos.
Everyone Is Facing Market Challenges
While the Hispanic population experienced homeownership growth in 2022, the community is not immune to the current market challenges facing all homebuyers. Home price appreciation, a decrease in homes for sale, and a rise in interest rates pose barriers for homeownership.
Hispanic Community Resilience Drives Continued Growth
According to NAHREP, a key driving force behind continued homeownership growth and mortgage readiness among the Hispanic population comes down to resilience. Those surveyed for the report shared that Latino buyers show a particular willingness to make sacrifices such as finding a more affordable neighborhood, moving to a more affordable state, working with family members to pool resources, and living in multigenerational households.
Latinos Twice as Likely to Use FHA Loans
A key to homeownership success is working with an experienced loan officer to find the right mortgage product to match your needs. For Hispanic buyers, they are more likely to use FHA loans for their purchase transactions.
At CrossCountry Mortgage, we’re committed to making home a reality for Hispanic homebuyers. Visit our Hispanic Homebuying portal for resources, guides, and consumer insights geared toward the Spanish-speaking community.