NAHREP 2021 State of Hispanic Homeownership Report Predicts the Future of Hispanic Homeownership in the U.S.

Despite tumultuous housing market conditions since the onset of the COVID-19 pandemic in 2020, the Hispanic homeownership rate has continued to rise. Notably, there also are increasingly more Latino first-time buyers entering the market. Homeownership is identified as the leading strategy Latinos use to build wealth.

The National Association of Hispanic Real Estate Professionals (NAHREP) released its 12th annual State of Hispanic Homeownership Report in partnership with the Hispanic Wealth Project, presenting data collected in 2021 to reflect the changing patterns in homeownership among the Hispanic community.

“From buying a first home to upsizing after years of creating memories, real estate continues to be a leading source in creating generational wealth for Latinos,” says Mike Reagan, RE/MAX Senior Vice President of Industry Relations and Global Growth & Development. “RE/MAX is proud to be a partner of NAHREP and support the shared goal of sustainable homeownership for all.”

Here are a few key takeaways from the 2021 State of Hispanic Homeownership Report:

The rate of Hispanic homeownership is increasing

In 2021, the rate of Hispanic homeownership increased to 48.4% with more than 8.8 million Hispanic-owned households existing throughout the U.S. This demonstrates a consistent and steady annual increase since 2014 when the rate was at 45.4%.

Owning a home – which can create wealth and build equity – was identified as a driving factor for Latinos the ethnic and racial wealth gap during the 2022 NAHREP National Convention and Housing Policy Summit. Hoping to continue the upward trend, the report predicts the rate of Hispanic homeownership could reach 50% by 2025.

The Latino demographic makes up a higher percentage of younger homebuyers

According to the report, Latinos are buying homes at a younger age compared to the rest of the population. The U.S. Census Bureau shows that while 18.7% of the country’s population is Latino, the percentage they occupy in each age cohort increases as age decreases. Latinos make up 20.9% of the Millennial generation, 24.6% of Generation Z and an astounding 25.8% of Generation Alpha – the country’s youngest demographic.

The median age of a Latino individual in the U.S. is 30 and nearly two in three Latinos are 40 or under, placing the majority of Latinos in optimal homebuying years or readily positioned to become first-time homebuyers.

Latino homebuyers are most affected by low inventory

Since the shift to a persistent seller’s market in early 2020, homebuyers – including Hispanic buyers – have faced setbacks like low inventory, bidding wars, and getting priced out of housing stock due to cash buyers and institutional investors. The RE/MAX National Housing Report for February 2022 found that there is a near 30% decrease in the quantity of homes for sale in the U.S. compared to the same time last year.

The financial barriers to entry in the current housing market include unequal loan capabilities. The NAHREP report unveiled that Latinos were 81% more likely to be denied for a conventional loan than non-Latinos applying.

Another looming barrier to homeownership today is the national shortage of existing homes. Some of the markets that are struggling with significantly low inventory, like Florida and Arizona, for example, are home to a higher concentration of the Hispanic population. Despite an ongoing battle against low inventory, Latinos added more than 1 million new households in the U.S. between 2019 and 2021.

On a mission to advance sustainable homeownership through education and empowerment, NAHREP – along with partners like RE/MAX – is working to ensure the real estate and mortgage industries continue to support diverse homeownership throughout the U.S. For six straight years, RE/MAX has had the highest representation in NAHREP’s Top 250 Latino Agents ranking, and the global real estate franchisor also sponsors the organization’s English/Spanish Glossary of Real Estate Industry Terms annually.

To view the full 2021 State of Hispanic Homeownership Report, click here.

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