The rate of home ownership in the Hispanic community is not catching up with the growing rate of the demographic’s population in the United States.
In fact, the distance between the two is gradually growing further.
A new report from the Demand Institute suggests, among other things, that while many Hispanics aspire to own a home, they lack the necessary savings and credit needed for such a purchase.
“Hispanics were hit especially hard by the financial crisis and housing crash,” Louise Keely, president of the institute, said in a statement.
The outlook for home ownership in the demographic is “uncertain,” she added.
The home ownership rate among Hispanic households currently stands at 44 percent and continues to decline, Keely said. Compare that to pre-housing crash numbers in 2007, when the Hispanic home ownership rate peaked at almost 50 percent.
Despite the declining numbers of homeowners in the demographic, Hispanics, by and large, are still a fast-growing segment of the housing market. Keely said “their distinct demand for communities and housing could stimulate innovation for a wide range of businesses, including financial services.”
For those who are purchasing homes, the suburbs are becoming the location of choice, according to the Demand Institute report. And, like other home owners in the same areas, Hispanics are looking for similar amenities — more space, better schools and more affordable housing to raise their families.
The report said Hispanics will make up roughly 40 percent of new households created in the U.S. between now and 2020, more than any other single racial or ethnic group. With that kind of presence, the Hispanic demographic is expected to become a key driver of home rental and purchasing activities over the next several years.
The Demand Institute is a non-profit think tank operated by the Conference Board and Nielsen.
Join Realtor and radio host Diane Brennan for That Real Estate Show Sundays at 8 a.m. on KTAR News 92.3 FM.