Hispanics, already leading the first-time home buyer market, could be an even greater force if inventory shortages don't get in their way, according to a new report.
Researched and produced by the National Association of Hispanic Real Estate Professionals, the 24-page paper traces the rise of the Hispanic market. It was released here at the group's annual housing policy and lending conference at the Four Seasons Hotel at the foot of Georgetown.
The document follows the minority group's gains in household formation, jobs, income and education—all variables that make them ownership ready. "The biggest obstacle now coming into the market isn't the credit crunch," said Juan Martinez, NAHREP's newly elected president. "It's the lack of available housing to purchase."
Based in San Diego, NAHREP represents Hispanic in all housing-related fields. It claims more than 20,000 members.
In a continuation of a trend that started a dozen years ago, the report says Hispanics led the surge in U.S. homeownership last year, accounting for 355,000 of the net increase of 693,000 owner households. That's 51% of the gain.
NAHREP says the main reason Latinos purchase homes is that it represents a symbol of success and achievement to them. Only a third of all Americans currently believe that.
According to the report, Hispanics have registered gains in owner households in all but two of the last 12 years. And that's despite the losses suffered during the foreclosure crisis.
The number of Hispanic homeowners grew from 4.24 million in 2000 to 6.69 million in 2012, an increase of 58% compared to just a 5% increase for the other population demographics. At the same time, however, the overall Latino ownership rate fell slightly, from 47.5% in 2000 to 46.1% last year.
But the NAHREP paper says the drop off is the result on a net increase of more than 1 million households over that two-year stretch. And as the Latin population continues to grow, it says the most important benchmark will be the total number of owner-occupied units purchase, not the ownership rate.
The report highlights these key trends:
Population – Hispanics continue to lead the nation's population growth. Over the past decade, the "minority" accounted for more than half the total gain. Every month, 50,000 young Latinos reach the age of 18. Even more notable, perhaps, is that more than one million Hispanic households were formed in 2012, compared to a decrease of 704,000 non-Hispanic White households.
Education – Hispanics also are now the largest minority group on the country's college campuses. In 2011, the number of Hispanics 18- to 24-year-old enrolled in colleges exceeded 2 million, accounting for a 16.5% share of all college enrollments.
Income – Latinos are earning more. Some 40% earned more than $50,000 last year, and the number earning above that benchmark is growing faster than that of the total U.S. population.
Employment – Hispanics also are dominating the growth in the nation's workforce, accounting for roughly half of the total.
