Recent trends point to an upward tick in Latino home ownership. Over the next decade, Hispanics are expected to account for 40 percent of the estimated 12 million net new U.S. households. Coupled with the fact that HIspanics have the highest labor force participation rate (two thirds of all working-age Latinos are employed), this augurs well for the still recovering housing market. Its primary growth could come from Hispanics looking for a new home.
Gary Acosta, the Co-Founder of the National Association of Hispanic Real Estate Professionals, admits that Hispanics’ share of homebuying was surprising, given that they were also disproportionately affected by the subprime lending crisis. He states, “They view homeownership as a vehicle for stabilization to create a better living environment for their family and not as much as an investment”. During the third quarter of 2011, the Hispanic homeownership rate rose to almost 48 percent, accounting for more than half of the total growth in homeownership over that period.
It is also noted that one barrier to home buying for Hispanics is credit. They don’t have bad credit, as the article emphasizes, they just have little credit. Once Latinos have access to credit, their homeownership rate should continue to rise.