Mortgage Connects
Hispanics make viable homeowners
Why does the Hispanic community represent an untapped opportunity for the housing market?
With a growing population and a strong desire for homeownership, Hispanics are a key demographic that should not be overlooked. By considering their unique strengths and qualities, you can position yourself to better serve this burgeoning market and foster mutually beneficial relationships.
Download our infographic to delve into why Hispanics make viable homeowners and how you can leverage this opportunity to expand your lending portfolio.
Explore six compelling reasons why you should pay attention to this vibrant and dynamic group of potential homebuyers.
1. Populating boom and economic power
Hispanics have been the main driver of U.S. population growth over the last decade. With the highest labor force participation rate for more than two decades, Latinos have consistently experienced rising incomes and educational attainment, two economic factors that contribute to homeownership readiness.
2. Climbing homeownership rates
Hispanic homeownership rates are steadily rising reaching 49.5% in 2023, the largest increase across racial or ethnic groups. This upward trend indicates that more Hispanics are achieving their dreams of owning a home and are actively engaging in the housing market.
3. Resilient and resourceful
While rising interest rates and home prices created affordability barriers, Hispanic homebuyers' resiliency and ingenuity have led to sustained homeownership growth. In 2023, Latinos added a net gain of 377,000 owner-households, the largest single-year gain since 2005. This fortitude contributes to creating a reliable pool of potential borrowers.
4. Willing to adapt
Unable to afford in some areas, Hispanic are willing to relocate to more financially viable regions demonstrating an adaptability and commitment to homeownership. Latinos are also taking advantage of multigenerational living, leveraging co-borrowers in their financing arrangements and capitalizing on specialized local programs, all contributing to realizing their homeownership dreams.
5. Income levels climbing
Hispanic household incomes are outpacing the general population and growing faster than most other racial or ethnic demographics, providing a solid foundation for potential homeownership.
6. Youthful exuberance
While Latinos are forming new households at a faster rate than other racial or ethnic demographics, they are also buying homes at a younger age. The largest share of Hispanic homebuyers falls into the 25-34 age bracket with 41.2% of originations in 2022 going to someone under the age of 35, showing a youthful eagerness to dive into homeownership early.
The Hispanic community checks all the boxes
A booming population, increasing wealth, strong desire to own, and the willingness to make it happen. Overlooking this lucrative market would be a huge, missed opportunity. It's time to start catering to the rising force of Hispanic homebuyers.
SOURCE: NAHREP’s 2023 State of Hispanic Homeownership Report
