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Hispanic Americans have historically been underrepresented as homeowners, however progress is being made toward closing the gap. Realtor.com, in conjunction with The National Association for Hispanic Real Estate Professionals (NAHREP), released a survey that found that 58% of Hispanic American home shoppers are looking to buy their first home.
According to the National Association of Realtors, this number is substantially higher than the population at large, where first-time buyers make up 34% of all home buyers nationally. The survey also showed that homeownership can be viewed as a way to build generational wealth, that many Latinos plan to pass a home on to their children, and that they are likely to consider extended family in their home search process.
Realtor.com and HarrisX surveyed 1,002 Hispanic Americans in January to learn about their perception on home buying and homeownership.
The survey found that 41% of respondents own the home that they live in, which is lower than the national average of 66%, according to census data. However, 39% of those surveyed are currently looking to buy a home, which suggests that Hispanic Americans are making strides toward closing the homeownership gap.
"As Latinos are predicted to account for 70% of new homeowners over the next 20 years, insights into Latino homebuying will be critical to understanding how to sustain growth in the housing market," said Gary Acosta, Co-founder and CEO of NAHREP.
Twenty-three percent of those surveyed said that they are or would be the first generation in their family to own a home. Additionally, 71% of respondents/their siblings haven't inherited a family home, but an incredible 73% plan to pass a home on to their children someday. With home values increasing at staggering rates over the last few years, wealth gained from owning a home over the long term could be significant. The 2017 Census showed that homeowners' median wealth was 89 times higher than that of renters.
"Homeownership can be a way to build generational wealth for families, but there are significant barriers to entry, especially in today's high-priced and fast-moving housing market," said George Ratiu, Manager of Economic Research at Realtor.com. "There are a number of programs available to help first-time buyers break into the market, but many people either don't know that these programs exist or don't know where to start in finding one that works for their situation."
Although down payment assistance can help, awareness is low. There are a number of programs available to help first-time homebuyers break into the market, but awareness of these programs is low. Some 55% of non-homeowners have neither used nor heard of these programs. However, 35% of homeowners surveyed had successfully used one of these programs, showing that the programs do work and increasing awareness of them is important in continuing to close the homeownership gap for Hispanic Americans.
"At Realtor.com we believe that everyone should be able to create a comfortable home for themselves and their families. We want to be a resource for information that helps people feel empowered to buy their first home," said Mickey Neuberger, CMO, Realtor.com. "To help first-time homebuyers navigate this tricky process, we developed a free First-time Homebuying 101 ebook, which is now available in English and Spanish, that provides information and tips on everything from financial readiness, to picking the right home, to navigating the offer stage and the closing process."
The survey also found that while 83% of respondents don't live in a household with more than two generations, family is an important consideration during the homebuying process. Two-thirds of respondents would consider extended family in their home search.
The most important considerations are:
- Buying a home that is close to extended family (27%)
- Having room for overnight visitors (22%)
- Buying a home that can accommodate extended family living in the home long-term (17%)
For more information, download NAHREP's State of Hispanic Homeownership Report or click here for all details in Spanish.
