Hispanics are said to be driving homeownership growth in the U.S. more than any other demographic.
In the latest 2018 State of Hispanic Homeownership Report published this week by the National Association of Hispanic Real Estate Professionals, three compelling stats stand out: Hispanics represented 62.7% of the increase in the U.S. net homeownership rate between 2008 and 2018; 81% of the U.S. labor force growth; and 32 percent of new U.S. household formations, the report found.
“Hispanic household growth continues to outpace that of the overall U.S. household growth and is anticipated to do so for the foreseeable future,” the report notes.
Overall, the U.S. homeownership rate among the Hispanic population grew to 47 percent in 2018, marking the largest net gain since 2005.
“Despite concerns about housing inventory and changing government policies related to homeownership, the leading indicators, such as household formation, income trends, age, and consumer sentiment, suggest that Hispanics will continue to drive homeownership gains in America,” the report added.
Interestingly, Hispanics are the only demographic that’s managed to increase its homeownership rate during each of the last four years, according to the report.
The findings are backed by a prediction from the Urban Land Institute, which recently said Hispanics will account for over half of all new homeowners during the next several years. By 2030, Hispanics will account for 56 percent of new homeowners, the Institute forecast.
Hispanic homeowners tend to be concentrated within certain parts of the U.S., with Puerto Rico, New Mexico, Texas, Wyoming and Michigan all reporting rates over 50%.
Some other interesting findings in the report include that Hispanics formed 485,000 new households in the last year, accounting for 32.4% of the overall total. Hispanics are expected to add another 4.6 million households by 2025.
The Hispanic population is rising faster than most other demographics, the report said, and with 58.9 million people now accounts for 18.1% of the U.S. population.