Closing the Wealth Gap and Strengthening Latin American Homeownership – RISMedia |
Latinos are on track to meet the Hispanic Wealth Project (HWP) goal of a median household wealth of $ 45,450 by 2024, further narrowing the wealth gap between non-Hispanic whites and latinos.
According to the 2021 State of Hispanic Wealth Report, recently released by HWP and the National Association of Hispanic Real Estate Professionals (NAHREP), several factors contribute to the wealth of this segment of the population, but real estate is taking the lead. : Residential property values account for over half (52%) of Latino assets, driven by both homeownership and investment property ownership.
Home equity continues to build up, with Latino net worth levels hitting a median of $ 95,000 in 2019. Between 2016 and 2019, there were 818,000 new net Latin American households, the largest increase on three years since before the Great Recession.
Homeownership continues to drive wealth gains, with landlords reporting 28 times the wealth of renters. According to the report, while Latino renters have a median net worth of $ 6,210, the net worth of Latino homeowners is $ 171,900.
Homeownership trends include dependence on family, with Latinos being the demographic group most likely to live in multigenerational households. Forty-one percent report having at least three incomes to support their household and 50% pool all the income to pay for all or at least some expenses, including rent or mortgages, the highest of all. demographic groups.
Latinos are also investing heavily in real estate, with demographics increasing their ownership of investment property by 33.1% between 2016 and 2019.
While there has been progress, however, obstacles remain. The down payment remains the main obstacle to homeownership. Over 36% say they haven’t saved enough for a down payment as the main reason for not buying a home.
Additionally, the pandemic has introduced additional challenges for existing owners. As of March 2021, 8.4% of Latino mortgage borrowers were in forbearance and 0.7% of Latino borrowers were at least 60 days past due. According to the report, the demographic is 2.3 times more likely to abstain and 1.5 times more likely to be delinquent than non-Hispanic white borrowers.
Despite these hurdles, the report says 53% of those surveyed expect to buy a home in the next five years, with 36% of Latinos considering buying investment property within that timeframe, continuing to strengthen demand. of real estate.
Liz Dominguez is the Senior Online Editor for RISMedia. Send him your ideas for real estate news by e-mail at [email protected].