Hispanics and Homeownership
A snapshot of the demographic force and potential impact of Hispanics on the housing market
- 42.7 million: The estimated Hispanic population of the United States as of July 1, 2005, making people of Hispanic origin the nation’s largest ethnic or race minority. Hispanics constituted 14 percent of the nation’s total population. (This estimate does not include the 3.9 million residents of Puerto Rico.)
- About one of every two people added to the nation’s population between July 1, 2004, and July 1, 2005, were Hispanic.
- A 3.3 percent increase in the Hispanic population between July 1, 2004, and July 1, 2005, making Hispanics the fastest-growing minority group.
- The projected Hispanic population of the United States as of July 1, 2050 will be 102.6 million. According to this projection, Hispanics will constitute 24 percent of the nation’s total population on that date.
- Twenty seven was the median age of the Hispanic population in 2005. This compares with 36.2 years for the population as a whole.
Hispanic Purchasing Power
- Hispanic Purchasing Power increased to over $865BB in 2007, and is anticipated reach over $1 Trillion by 2010, an increase of 457% since 1990
- The growth rate for Hispanic Purchasing Power of 8.6% is the highest of all minorities, and is over 2.5 times greater than the 175% projected for whites
- Hispanic incomes are growing the fastest in the $75,000 to $99,000 category
- The Number of Hispanic households earning over $75K are increasing faster than the number of Hispanic households earning less than 75K
- 50% of all U.S. Hispanic Households earn $50K or more
- Affluent Hispanic buying power is estimated to be 2/3 of the entire U.S. Hispanic buying power
- Homeownership equity accounts for 63% of Hispanic household wealth – the highest of any group. (Federal Reserve Board’s Survey of Consumer Finances 2001
Source: U.S. Census
- Homeownership among Hispanics increased more quickly and for a longer time than homeownership overall. The Latino homeownership rate peaked at 49.8% in 2006, compared with 42.1% in 1995. It was unchanged in 2007 and fell to 48.9% in 2008. (Pew Hispanic Center)
- Immigrant householders are less likely to be homeowners than those who are native-born, but their losses in recent years were relatively modest. Homeownership among immigrant householders increased from 46.5% in 1995 to 53.3% in 2006 and then fell to 52.9% in 2008. (Pew Hispanic Center)
- Among native-born householders, the homeownership rate increased from 66.1% in 1995 to 71.5% in 2004, peaking two years earlier than for immigrants. The native-born homeownership rate in 2008 was 70.0%. (Pew Hispanic Center)
- Foreign-born Latinos have not experienced a reversal in homeownership. Their homeownership rate increased from 36.9% in 1995 to 44.7% in 2007 and was unchanged through the first half of 2008. (Pew Hispanic Center)
- Native-born Hispanics raised their homeownership rate sharply, from 47.2% in 1995 to 56.2% in 2005. But they also experienced a sharp turnabout, as their homeownership rate dropped to 53.6% in 2008. (Pew Hispanic Center)
- More than 60% of U.S. born Hispanics own their own home, a rate that is much closer to that of non-Hispanic whites (76%) than that of Hispanics overall (49%) and especially that of Hispanic non-citizens (34%). (“Hispanic Housing in the United States 2006”, Institute for Latino Studies)
- Hispanic homeownership is expected to increase 27 percent from 5.9 million in 2005 to 11.1 million by 2020, a net increase of 5.1 million homeowners. (Harvard Joint Center for Housing Studies)
- 60 percent of all new homebuyers over the next 20 years are expected to be minorities; Hispanics will make up 40 percent of those buyers. (Harvard Joint Center for Housing Studies)
- The average age of a Latino homebuyer is 24 compared to 32 among Caucasians. (National Association of Realtors)