Not even a global pandemic could stymie the growth of Hispanic homeownership, according to a report by the National Association of Hispanic Real Estate Professionals (NAHREP).
NAHREP recently released its 2020 State of Hispanic Homeownership Report, which found that the homeownership rate among Latinos increased to roughly 49% in 2020, up from 47.5% the year prior. That accounts for an additional 725,000 new household owners in 2020 and marks the sixth consecutive year that the demographic has seen growth.
“Despite significant headwinds, Latinos drove homeownership growth in America for the sixth consecutive year,” said Gary Acosta, NAHREP co-founder and CEO. “This was especially consequential in 2020 because it was housing more than any other sector that pulled the country out of the coronavirus-induced recession.”
According to NAHREP, the report examines several metrics to determine the organization’s progress in the previous year toward its mission of increasing sustainable Hispanic homeownership.
While the Hispanic population didn’t go unscathed amid pandemic-induced surges in unemployment and razor-thin inventory, age played a critical role in increasing the homeownership rate.
One in three people were within prime home-buying age—29.8—-last year, making the group the youngest demographic in the market. Nearly half—43.6%—of Latino homebuyers were under 34 compared to 37.3% of the general population.
Overwhelming demand and record-low mortgage rates also contributed to the wave of new homeowners, according to the report, which found that more than 600,000 people purchased a home with a mortgage—an increase of 13% from 2019.
“A strong work ethic lifted Latino homebuyers to near-record numbers,” said Sara Rodriguez, NAHREP 2021 national president. “Improvements to housing supply and mortgage credit rules will ensure robust growth for the next decade and beyond.”
Over the past decade, Latinos have accounted for over 50%of homeownership growth in the U.S.
It appears that trend will continue into the next two decades, as the report predicted that 70% of new homeowners would be Hispanic in that period, adding 4.8 million new homeowners to the mix.
Jordan Grice is RISMedia’s associate content editor. Email him your real estate news to email@example.com.