Hispanic Homeownership Rate Continues Rising Despite Setbacks

New data from the Census Bureau confirms that Hispanic households continue to make significant gains despite the challenges they face in the hot housing market.

The National Association of Hispanic Real Estate Professionals (NAHREP) released a statement celebrating the finding of the U.S. Census Bureau’s Current Population Survey/Housing Vacancy Survey.

The survey found that Hispanic homeownership rates rose to 48.4% in 2021, up by 657,000 households since 2019. Of the total, a net 1,025,000 were new households, which account for 27% of household formation growth in the last two years.

Additionally, Hispanics added 1,025,000 net new households, accounting for 27% of household formation growth over the last two years.

However, potential Hispanic homeowners face many challenges. Latino homeowners trailed the overall market for the first time in three years.

“While the data shows that Latinos will account for the super-majority of growth in U.S. homeownership, the Latino market remains the most undercapitalized segment in the housing economy,” said Gary Acosta, NAHREP Co-Founder & CEO.

NAHREP notes that Latinos overwhelmingly live in areas strangled by the housing stock shortage. Many are also first-time buyers, a group that faces huge hurdles as they compete with equity-rich current owners and investors.

Furthermore, the industry’s lack of diversity can make the process especially difficult for homebuyers who need help translating documents or understanding their rights as immigrants.

Janet Murguía, president of UnidosUS, the country’s largest Hispanic civil rights organization, recently asked Congress to empower the community by promoting Hispanic homeownership.

“The moment has never been more critical: Latinos are more likely to die from COVID-19, less likely to have health insurance, and more likely to struggle to make ends meet. Importantly, the systems that exacerbate inequality and keep Latinos from building wealth can be addressed,” she said in written testimony to the Committee on Economic Disparity and Fairness in Growth.

“[Homeownership] is the single most powerful strategy for closing the racial and ethnic wealth gap.”