Despite the political and social turmoil facing the nation’s Hispanic population, data suggests the demographic remains resilient in their pursuit in achieving the American dream of homeownership.
In fact, according to a recent report from the National Association of Hispanic Real Estate Professionals, the demographic now accounts for more than 60% of the growth of nation’s homeownership rate within the last 10 years.
“Over the past decade, Hispanics have accounted for 62.7% of net U.S. homeownership gains, growing from 6,303,000 homeowners to 7,877,000, a total increase of 1,574,000 Hispanic homeowners,” NAHREP writes. “This upward trajectory for Hispanic homeownership is consistent with projections made by the Urban Institute that Hispanics will account for more than half of all new homeowners over the next several years and for 56% of all new homeowners by 2030.”
This may be true, as the organization’s data indicates Hispanics were responsible for over 30% of the overall U.S. household formations in 2018 alone. This means Hispanics added 362,000 homeowners to the U.S. housing market, raising the Hispanic homeownership rate to 47.1%.
Not only is this percentage an increase from last year’s 46.2%, but it also marks the largest net gain for Hispanics since 2005, according to the report.
“In 2018, Hispanics formed 485,000 new households, accounting for 32.4% of total U.S. household formations,” NAHREP writes. “According to Harvard’s Joint Center for Housing Studies, Hispanics are projected to increase by 4.6 million households between 2015 and 2025. Hispanic household growth continues to outpace that of overall U.S. household growth and is anticipated to do so for the foreseeable future.”
Fannie Mae’s 2018 annual housing survey supports these claims, as the analysis highlights a growing demand for homeownership among Hispanic Americans.
The 2018 survey, which gauges American homeownership characteristics, revealed 88% of Hispanics believe owning a home is the best housing investment plan. Furthermore, Hispanic survey respondents consistently indicate aspirational goals toward homeownership.