Thursday, September 8, 2016

The vital and growing role of Hispanics in US housing.

The month’s time between September 15 to October 15 is designated as Hispanic Heritage Month annually, a period of recognition accomplishments of Hispanic Americans in the United States. During this time, we can take a moment to celebrate the dynamic and important culture of Hispanic and Latino Americans including their vital contributions to the housing market and economy – which we’ll cover in this blog.

 The Hispanic population 

There are 57 million people of Hispanic origin in the United States, with California and Texas the #1 and #2 states with the highest Latino populations.

The United States is truly a melting pot of diversity, with more than half of all babies born last year minorities or multiracial.

In California, Hispanics and Latinos are expected to make up 44% of the population by 2020, 50% by 2030, and 56%, or a sound majority, by the year 2040.

 Hispanic spending power and the economy

In recent years, Hispanic job growth accounted for about 50% of total U.S. job growth.

There are about 3.5 million Hispanic-owned businesses now in the U.S, contributing more than $465 billion to the economy annually and employing more than two million workers of all nationalities.

Hispanics also have significant levels of wealth and income, with 43% of Hispanic households earning more than $50,000 annually, 35% making more than $75,000 per year, and 14% of Hispanic households bringing in $100,000 or more annually.

In 2015, Hispanic household median income reached $42,490 as poverty declined to 23.7%.

Between 2012 and 2014, Hispanics were the only major U.S. population group to lower their poverty rate and increase their annual household income simultaneously.

Hispanics are now the second-largest consumer group in the United States (behind only Whites/Caucasians.)

Since 2010, the combined purchasing power of U.S. Hispanics has grown from $1 trillion to $1.5 trillion, and economists forecast Hispanic purchasing power to grow to $2 trillion by 2020.

Hispanic homeownership rates

32% of Americans consider buying a home the symbol of success, while 56% of Hispanics believe the same thing.

From 2000 to 2012, Hispanic home ownership rates grew by 51.7% while the non-Hispanic and overall rates fell slightly.

Mirroring the overall numbers for homeownership through the real estate boom and bust, Hispanic homeownership rates climbed to an all-time high of 49.5-49.7% from 2005 to 2007, but declined in the subsequent years of the Great Recession.

There are plenty of signs that homeownership is on the rise again among Hispanics, such as the fact that from December 2014 to December 2015, homeownership boomed from 44.5% to 46.7% among that population, which was the largest one-year spike in more than a decade.

In 2015 alone, Hispanic home ownership rose by 245,000 households. In fact, Hispanics accounted for 69% of total net growth in U.S. homeownership!

Hispanic attitudes towards the American Dream of homeownership 

Hispanic households are twice as likely to be comprised of a married couple with children as non-Hispanic white households.

Since 2000, the Hispanic population accounts for more than 50% of all homeownership growth.

In fact, second-generation Hispanics have a strong 50% homeownership rate.
 Owning a home is still highly coveted among Hispanics, with 67% of those polled saying that they prefer homeownership to renting.

68% of Hispanics believe that purchasing a house is a good financial opportunity, compared to only 57% of all Americans.

73% of Hispanics believe that owning a home is a good way to accumulate wealth that can be passed to their families,

Hispanics and first time homebuyers 

Since 2006, about 77% of first time homebuyers have been white/Caucasian, with Hispanics accounting for about 8% of all first time homebuyers.

But now, 75% first-time homeowners are White/Caucasian and 11% are Hispanic.

That’s an increase of 38% since 2010 for Hispanic first time homeowners, the largest increase among any racial group or population.

Shifting demographics within the Hispanic population

Hispanic women now have a huge positive impact on our economy that’s increasing rapidly. In fact, 91% of Hispanic women believe that buying a home is the best financial investment they can make, and 61% believe they will play a more important role than their partner in the next real estate purchase.

There is also a significant and fast growing population of affluent Hispanics and Latinos, There are now about 15 million Hispanics that earn $50,000 to $100,000 a year, accounting for 29% of all Hispanic households. This group of strong-earning Hispanics spends about $500 billion every year, representing 40% of the total $1.3 purchasing power.

Hispanics and homeownership going forward 

Continuing that trend, Hispanics are expected to account for 52% of all new homeowners between 2010 and 2030.

By 2020, at least four out of every ten U.S. households will be Hispanic.

Over the next decade, Hispanic household growth is expected to increase by 5.7 million, out of a total expected household gain of 12-14 million.
Hispanic Heritage Month fact

Why does Hispanic Heritage Month start September 15, instead of just being in September, or October? The date September 15 is significant in Hispanic and Latino culture because it’s the anniversary of independence from the Spanish for many Latin American countries, including Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. Likewise, Mexico celebrates their Independence Day September 16.

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