Report: U.S. Hispanic Homeownership Has Risen to Nearly 50%

The Hispanic population throughout the U.S. continues to make remarkable strides toward homeownership – and has neared a new milestone in doing so. According to the National Association of Hispanic Real Estate Professionals (NAHREP) 2023 State of Hispanic Homeownership Report, the rate of Latino homeownership has reached 49.5%, a number that has steadily risen over the past decade. Plus, there are now nearly 10 million Hispanic owner-households throughout the country.

The 14th annual report, created in partnership with NAHREP and the Hispanic Wealth Project, uses timely data to explore housing opportunities and barriers among the U.S. Latino population.

Here are a few key findings from the 2023 NAHREP report:

It’s important to note that the report uses the terms “Hispanic” and “Latino” interchangeably “to refer to people of Mexican, Puerto Rican, Cuban, Central American, South American, Dominican, Spanish descent, and descent from other Spanish-speaking countries.”

2023 saw the largest single-year gain of Hispanic owner-households in nearly two decades

From 2022 to 2023, there was a net gain of 377,000 Hispanic owner-households throughout the U.S., bringing the total to 9,555,000.

To highlight the upward motion of this trend, there were only 6,792,000 Hispanic owner-households across the country 10 years ago.

Hispanic households are key drivers in the country’s homeownership growth

“U.S. homeownership growth is disproportionately being driven by Latinos,” the report shared. “Over the last 10 years, Hispanic households have been responsible for 25.6% of the country’s overall homeownership growth, despite only making up 14.8% of households.”

It was also revealed that the median age of Latino individuals in the U.S. is 30.7, making them the youngest racial or ethnic demographic throughout the country. In terms of housing, the majority of Latino homebuyers are between the ages of 25 and 34. This means that not only is the Hispanic population driving homeownership growth, but they’re generally younger than their non-Hispanic counterparts when doing so.

Hispanic homebuyers continue to see higher denial odds when financing a home

According to the report, Hispanic homebuyers are more likely to be denied mortgage financing (with FHA and conventional loans) than their non-Hispanic counterparts.

“In 2022, Hispanic or Latino applicants were 54% more likely to be denied than non-Hispanic applicants. This figure increased to 75% for those applying for a conventional purchase loan,” NAHREP shares. “[Debt-to-income] ratios were noted as the number one denial reason for Hispanic home purchase applicants for the last two consecutive years.”

Another barrier the Latino community is facing in their housing is the ongoing phenomenon of lower inventory and higher interest rates.

“The rapid rise in interest rates following the historic lows seen during the COVID-19 pandemic had a massive impact on prospective Hispanic homebuyers, making qualification more difficult and increasing mortgage payments,” the report said. “While rising interest rates affected all homebuyers, this impact was more pronounced among Hispanic households, many of whom are first time buyers with lower median incomes and who live in higher priced markets.”

But despite navigating these factors, Latino homebuyers remain resilient in their pursuit of house ownership – with some taking creative measures to make it possible. A recent study from RE/MAX found that purchasing a home with family (or friends) is one route today’s homebuyers would consider to make owning property a reality. Accordingly, NAHREP reports, Latinos continue to be among the most likely to live in multigenerational households.

What’s also helping Hispanic buyers achieve homeownership: having professional guidance throughout their real estate journey. And as the report points out, the expertise of an agent is a major asset in the homebuying process. Professionals are educating consumers and helping them make informed decisions based on the needs of themselves and their families.

Committed to fair housing for all, RE/MAX is a proud partner of NAHREP and shares in its mission of advancing sustainable homeownership for the Hispanic community.

Learn more about the state of Hispanic homeownership throughout the U.S. by downloading the full NAHREP 2023 State of Hispanic Homeownership Report.

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