Though overall U.S. homeownership rates are at their lowest level in decades, amongst Hispanics, rates of homeownership are actually on the rise.
According to data recently released from the National Association of Hispanic Real Estate Professionals (NAHREP), 2016 marked the second year in a row the rate of Hispanic homeownership increased. In 2015, 45.6 of the U.S. Hispanic population owned a home; by the end of 2016, 46 percent did.
“With credit remaining tight and limited housing inventory in several markets, these numbers are extremely encouraging and a testament to the economic resilience of the Hispanic community,” said 2016 NAHREP President Joseph Nery. “As the mortgage industry continues to recognize the exceptional opportunities in serving the Hispanic market and adjusts accordingly, we expect these numbers to only improve.”
The only demographic to see growth in homeownership, Hispanics led the country in household formations for 2016, adding a total of 330,000 households across the year. Homeownership rates amongst African Americans dropped from 43 to 42 percent, while the rate for Asian Americans fell from 56.5 percent to 55.5 percent.
On the whole, homeownership rates across the country are declining. According to the U.S. Census, only 63.4 percent of Americans owned a home in 2016—that’s down from 62.7 percent in 2015.
The growth of Hispanic participation in the real estate and mortgage banking industries has likely played a role in the recent rate growth in the demographic, as well as numerous initiatives promoting Hispanic homeownership, like the California Latino Homeownership Initiative and the Hispanic Wealth Project.
NAHREP will release more data regarding Hispanic homeownership in its forthcoming State of Hispanic Homeownership Report, due out March 28 at the organization’s annual Housing Policy & Hispanic Lending Conference in Washington D.C. To learn more about the report or the event, visit NAHREP.org.