According to an article in Housingwire, Hispanic homeownership rates are increasing for the first time since 2009 while in comparison the overall homeownership rates in the US decreased for the twelfth time. This is according to data from the State of Hispanic Homeownership Report.
Figures from the US Census Bureau show that Hispanic homeownership rates were 45.6% in 2015 which is 0.2% higher than in the previous year. However, in the year ending in December 2015, homeownership rates increased from 44.5% to 46.7% which is the largest yearly increase seen in more than a decade.
It’s an increase that is seen as being very encouraging and experts are keen to point out that the housing industry and policymakers need to recognise that homeownership is changing in the United States and it is important to ensure that these new consumers have access to affordable homes and lending products and to competent service providers in the future.
Between 2000 and 2007, Hispanic homeownership increased by 300,000 each year, but unfortunately much of this growth was due to sub-prime mortgages and wasn’t sustainable. From 2007 onwards, homeownership rates dropped for three consecutive years. This has changed since 2010 as homeownership rates have averaged an increase of 178,000 owner households each year. According to the report, since 2000 Hispanics have accounted for 52% of the growth in US homeownership rates. During the past 15 years the numbers of Hispanic homeowners has increased from 4.2 million in 2000 to over 7 million in 2015, a gain of 2.8 million and a growth rate of 67%. In comparison, homeownership rates amongst non-Hispanic white homeowners have decreased by 85,000 during the same time period.
These figures confirm the findings of the Urban Institute who carried out a recent study predicting that Hispanics would account for 52% of new homeowners between 2010 and 2030. The Hispanic population has increased in California, as well as in less traditional markets such as Tennessee, South Carolina and Alabama.
During last year, the homeownership rate in the United States increased during the third quarter with Hispanics accounting for 486,000 new household formations. This figure represented 37% of the total new household formations in the country. Employment rates in the US are steadily improving and Hispanics have been instrumental in workforce participation as well as household formation growth. The article points out that it’s likely that this trend will continue into the next decade at least. The Hispanic community is viewed as being vibrant and dynamic and is an important part of the economy in the US.