The Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals (NAHREP) have released their annual State of Hispanic Homeownership Report, reporting that Hispanics continue to outpace the overall U.S. population in homeownership gains, household formation and work force participation.
According to the Census Bureau, the homeownership rate among Hispanics increased to 46 percent in 2016, from 45.6 percent in 2015. Meanwhile, the nation’s overall homeownership rate declined to 63.4 percent, a 51-year low.
The Bureau of Labor Statistics has reported that between 2010 and 2016, Hispanics accounted for 76.4 percent of the growth in the U.S. labor force. Hispanics also formed 330,000 new households in 2016, representing about 38 percent of the total growth in the U.S.
“The data clearly shows that absent Hispanic homebuyers, the post-recession housing recovery would be substantially weaker,” NAHREP President Leo Pareja said in a news release. “With a median age of 28 years and a higher workforce participation rate than any other demographic, Hispanics will continue to drive growth in the housing market for decades.”
The report highlights data that provides a comparative analysis of both the past year and since 2000. It specifically analyzes the demographic and economic trends that shape the homeownership market, including the cultural nuances and purchase habits of Hispanic homebuyers.
The report noted that access to credit remained a significant barrier for first-time homebuyers and cited record shortages of homes for sale in many markets.
Major barriers to Hispanic homeownership included need for improved access to affordable mortgage credit, the need to substantially increase the number of culturally competent professionals in the industry and policies that address the shortage of housing inventory in many major markets.
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