Number of U.S. Hispanic Homeowners at All Time High, According to Report

Despite 2022 bringing high home prices, low inventory and increased mortgage rates to the U.S. housing market, Hispanic homeownership continued to make gains during the year. The 2022 State of Hispanic Homeownership Report by the National Association of Hispanic Real Estate Professionals (NAHREP) reveals that the rate of homeownership for Latinos was 48.6%, the highest number in 14 years. It has now grown for eight straight years.

The 13th annual report, created in partnership with NAHREP and the Hispanic Wealth Project, unpacks housing opportunities and barriers among the U.S. Hispanic population.

“Real estate agents are in a profession designed to help build community, and they go to work each day committed to helping individuals and families achieve homeownership,” says Abby Lee, RE/MAX Senior Vice President of Marketing and Communications who oversees the brand’s partnership with NAHREP. “RE/MAX shares in NAHREP’s goal of advancing sustainable Hispanic homeownership. This annual report from NAHREP is a comprehensive resource with insights that can benefit anyone.”

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, and descent from other Spanish-speaking countries.”

Latino homebuyers were resilient

Persistence was a theme throughout the report.

“The combination of higher interest rates and rising home price appreciation made affordability for first-time buyers more difficult than at any time in recent history. Notwithstanding strong headwinds, Latinos remain the only demographic to post eight continuous years of steady homeownership gains,” the report says.

In addition to the rising 48.6% homeownership rate, 2022 also saw the highest number of Hispanic owner households to-date in the U.S., with a total of nearly 9.2 million.

This increase in homeownership among the Latino community is a key factor in the trend of non-White households driving homeownership gains in the U.S.

“The majority of homeownership growth since the Great Recession has been driven by non-White households. In 2022, homeownership rates for minority households reached 50.0%,” the report shares. “Since 2014, non-White households have accounted for more than half (54.6%) of overall U.S. homeownership growth.”

Forward strides in Latino homeownership don’t seem to be stopping any time soon. The report cites that Latinos continue to form more new households than any other demographic group.

Increasing interest rates slow opportunity for some Latino homebuyers

In 2022, Hispanic homebuyers were more likely than the general population to use FHA financing options – despite ongoing challenges with approvals.

“While there is still a stark discrepancy between denial rates for Latinos and their non-Hispanic counterparts, the gap is narrowing. In 2021, Latinos were still 47% more likely to be denied financing for a home purchase than non-Hispanic applicants, however, this figure dropped from 58% in 2018,” the report says.

As of 2021, debt-to-income (DTI) ratios were the leading reason for Latinos being denied financing on a prospective home. The persistence of the issue could be a collateral effect of many financial hardships brought on by the COVID-19 pandemic. The good news is that, according to the report, the share of lenders reporting credit quality as the main denial reason for Latino applicants has dropped significantly in the past few years.

There are standout barriers to Latino homeownership be aware of

Affordability has been an issue for many attempting to buy a home during the seller’s market of the past few years – and even continues to be an issue as today’s market continues to cool. But depending on the locale, the inflated cost of homes can disproportionately effect the Hispanic population.

According to the report, the top five U.S. states with the highest year-over-year home price appreciation are Florida, South Carolina, Georgia, North Carolina, and Tennessee. Several of these states are home to a concentrated population of Latinos.

“Florida, home to 5.8 million Latinos, saw the highest year-over-year growth in November of 2022 at 18.0%,” the report reveals.

It also shines light on how the challenges with affordability have a strong impact on all lower- and middle-income prospective homebuyers. Inflated home prices as well as persistent competition have tipped the scales in favor of those who can pay above asking price – or in some cases, in cash. And the more recent rise in interest rates, prompted by the Federal Reserve, continues to slow market activity with borrowing at a higher cost.

Despite the barriers to homeownership outlined in the report, the Hispanic population continues to be resilient through the current market by forming new households and making homeownership dreams a reality.

Learn more about the state of Hispanic homeownership by downloading the full NAHREP 2022 State of Hispanic Homeownership Report.

Get RE/MAX News delivered to your inbox! Sign up for News Alerts in the footer below.