RISMedia's Real Estate Magazine

APR 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/958872

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Page 53 of 126

The Hispanic homeownership rate in- creased to 46.2 percent in 2017— just 3.5 percent away from the 49.7 percent it was in 2007, prior to the recession. To compare, though the country's homeownership rate in- creased to 63.9 percent in 2017, it remains 4.2 percent under the 68.1 percent it was 10 years ago. Accord- ing to the report, last year marked the third straight year Hispanics grew their homeownership rate—the only demographic group to make a three-peat. Commingling factors are at play. The Hispanic population is skyrocket- ing, expanded last year by 1.1 million to 58.6 million, and expected to rise to 119 million by 2060. Another six million Hispanic households alone are expected to materialize by 2024. Beyond broader economic indica- tors, 30 percent of Hispanics are mil- lennials, and 60 percent of Hispanic households with married occupants are comprised of at least two par- ents and one child. Additionally, the desire for a home of their own is palpable. Eighty-one percent of Hispanics believe home- ownership is a good investment long- term, and 88 percent believe that, in the future, they are more likely to be homeowners than renters. Hispanics, however, are concen- trated in California (15.3 million), Florida (5.1 million) and Texas (10.9 million)—three states with fast-grow- ing home prices and shorter supply. Even with above-average homeown- ership rates in Florida (50.9 percent) and Texas (56.5 percent), these con- straints curbed progress, the report states. California, Florida and Texas were also greatly impacted by natural di- sasters in 2017, and have consider- able DACA (Deferred Action for Child- hood Arrivals) grantees. According to the report, of the DACA program's 800,000 recipients, 25.7 percent live in California, 5.2 percent live in Florida and 14.1 percent live in Texas. "The continued shortage of afford- able housing inventory, coupled with prolonged natural disasters concen- trated in the nation's most populous Latino states and increasing uncer- tainty over immigration policy, have created significant hurdles for Latino homeownership and economic sa- liency," the report states. "As the nation's primary driver of population growth and labor force growth, and the nation's historical driver of homeownership gains, His- panics are critical to the U.S. econo- my, and their access to homeowner- ship is a key element to the nation's economic growth." RE For more information, please visit www.nahrep.org. Even With Headwinds, Hispanic Homeownership Rises H ispanics are a dominating force in homeownership, closing in on their pre-downturn homeownership rate sooner than the U.S. as a whole, according to the annual National Association of Hispanic Real Estate Professionals (NAHREP) report. by Suzanne De Vita Create for the Human

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