Hispanic households are bucking the trends.
According to the 2016 State of Hispanic Homeownership Report, last year, more than 7 million Hispanic households were homeowners, an increase of 209,000 from 2015, and representing 74.9 percent of net growth of homeownership. The increase in homebuying also led to an increase in Hispanic homeownership rate, which rose from 45.6 percent to 46 percent, while the overall homeownership rate decreased to 63.4 percent. Hispanics also were responsible for 333,000 new household formations, a 38 percent representation of all household foundations.
Since 2000, Hispanics have represented around 3.1 million new homeowners, a 73 percent increase, and have represented more than 50 percent of the population growth in the country. It is estimated that between 2010 and 2030, Hispanics will account for 52 percent of new homeowners. Between 2000 and 2015, 90 percent of the Hispanic population was from native births and 10 percent from immigration. Nearly 60 percent of Hispanics in the U.S. are millennials or younger.
Hispanics have a positive attitude towards homeownership. Eighty-seven percent reported it is a way to achieve having control over one’s space and the same percentage reported they prefer owning a home, as it is a good place to raise children. Eighty-two percent said it’s the best way to build wealth, while 81 percent said it is a way to live in a nicer home. Seventy-nine reported they are better off owning than renting, while 77 percent said it’s the best investment plan.
The Hispanic population is also responsible for 76.4 percent growth in the U.S. from 2010 to 2016, and have a higher labor force participation rate than any other ethnicity, the report found. Non-Hispanic whites were down 426,000 jobs in the labor force during the same period. The median incomes for Hispanics increased 6.1 percent in 2015, while the level of poverty fell to 21.4 percent. More Hispanics are valuing education as well, with a high school graduation rate of 78 percent, just below the national average of 82 percent. Additionally, 15 percent of the Hispanic population 25 and older had a bachelor’s degree or higher.
However, there are still hurdles Hispanic homebuyers face. They are 7 percent more likely to be declined for loans, despite almost half of first-time homebuyers being Hispanic.