Hispanic homeownership on the rise
According to new data, 70% of new homeowners will be Hispanic by 2040. This statistic affects all Americans – homebuyers, sellers, mortgage professionals, real estate industry professionals, and more. The market will hinge largely on consumer guidance and representation, according to the report.
Rent vs. own
Hispanic families who own their homes have, on average, 26.4 times the net worth of those who rent. It’s important to note that while existing homeowners have benefited greatly from home price appreciation in recent years, renters currently face greater barriers to homeownership.
The state of Hispanic household wealth
More Latinos than ever before have become homeowners during the past decade, and rapidly rising home values have helped those who can afford to buy grow wealth through home equity.
Wealth has tripled in past decade
Latinos were the only racial or ethnic demographic to increase their wealth more than threefold, significantly outpacing the general population.
However, a sizable wealth gap between Hispanic and non-Hispanic white households persists. The general population still holds more than twice the wealth of Hispanic households.
Hispanic owned business and the U.S. economy
Latinos continue to start new businesses at a faster rate than any other demographic group, a trend that was only amplified during the COVID-19 pandemic. Yet, accessing capital remains a challenge for Hispanic entrepreneurs, which limits opportunities to scale and build wealth.
The Hispanic community continues to outpace every other racial and ethnic group in starting small businesses, representing both an opportunity to build wealth and the potential for new job creation.
Review the report
For more insight into Hispanic wealth, read the full report.
