Latinos Forge New Paths To Ownership – NMP
As a group, for example, they are the most likely to pool their income to buy a home, according to the latest edition of the State of the Hispanic Wealth Report produced by the National Association of Hispanic Real Estate Professionals. The report was released this morning at the NAHREP ATTITUDE conference in San Diego.
The survey found that 41% live in a multigenerational household supported by at least three incomes. Half said they combined all of their income to pay all or at least some expenses, including their mortgages.
It is the highest of all racial groups, according to the report. And that’s just one of the reasons why, even though the demographic has a lower savings capacity, the Hispanic homeownership rate is expected to reach 50% over the next five years. The rate now stands at 48%.
The survey of 6,000 people was conducted on behalf of NAHREP by Morning Consult this summer. The sample group was weighted to represent the national population by age, race, sex, educational level, and region to coincide with Census Bureau surveys.
He revealed that the wealth Latinos have gained is primarily due to real estate, with residential properties accounting for 52% of their assets. About 73% have owned a home for 15 years or less.
Landlords have 28 times the equity of renters, $ 171,900 compared to $ 6,210. But the net worth of their white counterparts is $ 299,000, a difference of $ 127,000.
At a median age of just under 30, Latinos are about nine years younger than the general population. About one in three people are currently in premium purchase age, and many have just bought their first home. Therefore, as the Urban Institute reported earlier this year, much of the growth in overall homeownership rates is likely to come from them.
In another finding indicating that Latinos are likely to play a major role in sustaining the housing market, more than half of renters surveyed said they plan to buy a home within the next 5 years. That’s twice as many as white non-Hispanic renters. And the trend is even more pronounced among those who own a business or currently live in multigenerational households.
But Latinos are also acquiring investment property at a faster rate than any other ethnic group. Between 2016 and 2019, Hispanics increased their ownership of investment property by 33%, the only group to increase their portfolio of real estate investments. Indeed, investment property ownership has declined over the same four-year period among the general population as well as within the white and black demographics.
And this trend is expected to continue, according to the survey, which found that Latinos prefer real estate to any other investment. Thirty-six percent plan to buy investment property in the next five years, and one in five is already planning to buy in the next 12 months.