The National Association of Hispanic Real Estate Professionals (NAHREP) released the 12th publication of its annual State of Hispanic Homeownership Report during its National Convention & Housing Policy Summit in Washington D.C.
In 2021, the Hispanic homeownership rate increased to 48.4 percent, consistent with the trendline of the past seven years—an average increase of nearly one percentage point every two years. This growth came despite a hostile real estate market, particularly harsh for low-wealth first-time homebuyers who rely on low down payment loan products.
“While the homeownership rate for Hispanics continues its upward trajectory, recent market conditions have made it challenging for new homebuyers, particularly those who rely on low down payment products,” NAHREP co-founder and CEO Gary Acosta said in a release. “Housing inventory dipped to record low levels, and rising price points pushed homeownership out of reach for many first-time buyers. A failure to address the housing supply crisis could result in a steep decline in the overall homeownership rate and a devastating impact to the nation’s GDP and economic well-being.”
While Latinos accounted for the majority of homeownership growth between 2011 and 2017, the proportional share of new homeowners attributed to Latinos decreased from its peak of 68 percent in 2015 to 18.1 percent in 2021. This slowdown coincides with the lowest rates of housing inventory in history. Given the relative youth of the Latino community, coupled with population and labor growth projections, the country will increasingly depend on Latinos to carry U.S. homeownership growth, the report stated.
The report also showed Latinos accounted for 20.6 percent of homeownership growth since 2017, compared to 78.5 percent of homeownership growth between 2011 and 2017. Since 2017, the non-Hispanic white population created a record 2.7 million net new households, accounting for 41.5 percent of new household formations. This is in contrast to earlier in the decade when Latinos made up the largest share of household formation growth.
Other key takeaways were:
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