Homeownership Rate Increases Among Latino Population

Homeownership Rate Increases Among Latino Population

By Kevin Graham

According to data from the U.S. Census Bureau compiled by the National Association of Hispanic Real Estate Professionals (NAHREP), homeownership among Hispanics rose from 45.6% to 46.0% in 2016. This resulted in the formation of 330,000 new households.

This is extremely important because although it’s a great time to be a homeowner for many reasons (low rates and increasing property values among them), the homeownership rate has been decreasing nationwide, down to 63.4% from 63.7% in 2015 according to the same census data.

We spoke with a couple of people in the Hispanic community about why homeownership is such a big deal for them.

Pride of Homeownership

For Airto Zamorano, owning a home gives him and his family a place to call their own, while at the same time opening up a variety of options.

“Owning your own home gives you a sense of pride,” he said. “You can maintain it, and make updates as you please. And one day, should you make smart financial decisions, your home should be paid for, which will help with retirement.”

Zamorano, who said he grew up in various rental properties, has even found a way to involve his family in projects around the house.

“Painting, patching drywall, replacing light fixtures, replacing sink faucets and more – our family has really come to enjoy working on home projects,” he said. “Best of all, it gives my wife and me a chance to teach our children how to maintain a home while providing an opportunity to do something together.”

What’s Driving the Trend?

What’s driving this Hispanic homeownership trend when homeownership is falling in other segments of the population?

Monica Rivera, a REALTOR based just outside Los Angeles, works mostly with millennial Hispanic home buyers. One factor she says might be pushing the rise is cultural values.

“Family is of the utmost importance when it comes to Hispanic culture and it is no surprise that as such, a high value would also be placed on homeownership as a home is associated with being a good place to raise a family,” Rivera said.

According to Rivera, technology, like Rocket Mortgage® by Quicken Loans®, has helped remove some of the barriers that kept this group from buying homes in the past.

“Another key factor that may serve the upward trend is that many bicultural and bilingual Hispanic millennials are coming of age to buy a home or help their families make the purchase,” she said. “Language barriers often prevent Hispanics from being able to understand the homeownership process. However, these tech savvy digital natives can navigate the process more easily and have the support of their families in making the purchase, including down payment assistance.”

Interestingly, many of Rivera’s clients aren’t looking merely at their current situation, but also looking for homes with an eye toward the future. This becomes apparent in the types of homes they’re looking at.

“The majority of my clients are Hispanic millennials and many are searching for multi-unit residences,” she said. “The American Dream for them no longer revolves around simple homeownership, but rather as an investment in their future and a potential home for not only themselves, but also elderly parents and other family.”

Source: Zing! by Quicken Loans