West Palm Beach, FL – The National Association of Hispanic Real Estate Professionals (NAHREP) generates a yearly report, the State of Hispanic Homeownership Report, that examines the increasingly pivotal role that Hispanic consumers play in the U.S. Housing market and the economy in general. The numbers from 2015 speak for themselves: the number of Hispanic-owner households saw a net increase of 245,000, accounting for 69 percent of the total net growth in U.S. homeownership; altogether, Hispanic household formations rose by 486,000 in 2015, which comprised 37 percent of all U.S. household formations. The report cites five major areas that influence this shift in the Hispanic share of the marketplace.
- The Rising Homeownership Rate – In 2015, the rate of homeownership for nearly every major population group declined. Hispanics, however, resisted that trend, and in a major way. According to Census Bureau numbers, the Hispanic homeownership rate rose more than 2 percentage points in 2015, jumping from 44.5 to 46.7 percent
- Historical Precedent – Those 2015 numbers were no anomaly. Hispanic homeownership has been skyrocketing for some time now. Since 2000, NAHREP reported, Hispanics have accounted for 52 percent of U.S. homeownership growth. In the last 15 years, the number of Hispanic homeowners has grown 67 percent, rising from 4.242 million to 7.089 million (a net gain of 2.847 million homeowners); according to a study from the Urban Institute, Hispanics will account for 52 percent of new homeowners from 2010 to 2030.
- A Population Boom – Hispanics are also driving the overall population growth in the U.S. Hispanics now comprise 18 percent of the country’s total population. Roughly 21 percent of the Millennial generation’s 72.2 million people are Hispanic. According to the Mortgage Bankers Association, Hispanic households will grow by as many as 5.7 million in the next decade, and will drive total U.S. household growth through 2024.
- Rising Incomes – From 2012 to 2014 (the most recent year for which we have data), Hispanic median income rose 7.3 percent, increasing from $39,600 in 2012 to $42,492 in 2014. Along with rising incomes – in 2014, 43 percent of Hispanic households earned over $50,000, 35 percent earned over $75,000 and 14 percent earned over $100,000 – Hispanic poverty also declined, falling to 23.7 percent.
- Economic Power – Finally, with its population and income rising strongly, the Hispanic population’s spending power has increased considerably. NAHREP reported that in 2015, Hispanic purchasing power was $1.5 trillion, a 50 percent increase from 2010; by 2020, Hispanic purchasing power is expected to rise 33 percent more to $2.0 trillion.
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