The 12th annual National Association of Hispanic Real Estate Professionals State of Hispanic Homeownership Report showed upward movement for Hispanic homeownership but also the difficulties first-time homebuyers are facing in the real estate market. See the highlights below, and click here for the full report:
Homeownership Trend Remains Consistent
The Hispanic homeownership rate increased to 48.4%, up nearly one point from 2019’s 47.5%, and remains on track of an average increase of nearly one percentage point every two years.
Latinos Accounted for Lower Share of Homeownership Growth
Latinos accounted for 20.6% of homeownership growth since 2017, compared to 78.5% of homeownership growth between 2011 and 2017.
First-Time Buyers Facing Challenges Using Low Down Payment Options
Latinos are twice as likely to use Federal Housing Administration financing, yet FHA borrowers faced a competitive disadvantage in last year’s tight housing market. Nearly half (44%) of respondents in NAHREP’s 2021 Top Real Estate Practitioners Survey reported working with FHA clients to switch them to conventional products, and 17% reported that FHA borrowers gave up on their home search and continued renting.
Despite a housing inventory shortage and affordability issues, Texas, Arizona, and Tennessee had the largest influx of Latinos in 2021, while California saw the greatest decrease in net migration.
Chances for Growth
Texas markets such as McAllen, El Paso, and Brownsville showed the greatest opportunity for growth for mortgage-ready Latinos.