Latino Homeownership Is on the Rise (Even in a Pandemic)

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In spite of the countless burdens of COVID-19 on Latinos, rates of increased household wealth have been on the rise.

In fact, 40% of Latinos who do not own a home plan to become homeowners by 2025, according to a recent survey conducted by the National Association of Hispanic Real Estate Professionals (NAHREP). This presents a shift, not only in the housing market but in the state of race and class in the U.S., according to Veronica Figueroa, a veteran realtor in Orlando.

“In recent years, Latinos have proven to be more confident than ever when it comes to homeownership and entrepreneurship,” Figueroa told Click Orlando. “We are also seeing overwhelming confidence in Latino investors who choose to invest in real estate. Latinos are overcoming the stigma of being considered an at-risk class, and are making a positive impact on homeownership and the economy.”

The Latino Homeownership Survey Highlights

Experts now say young Latino entrepreneurs and their businesses could sustain economic growth during and even after the pandemic.

This comes even as Latinos have historically faced systemic and social barriers to health and homeownership. Moreover, they are experiencing the hardest coronavirus impacts and outcomes across the nation. 

The NAHREP recent survey indicates that:

• Latino households were twice as likely (18%) as non-Hispanic White households (9%) to report having had at least one household member laid off due to the pandemic.
• Latinos were 25% more likely than their non-Hispanic White counterparts to own an investment property.
• More than 40 % of Latinos who don’t currently own a home anticipate purchasing a home in the next 5 years.

According to the US Census Bureau, the Latino homeownership rate rose to 48.9% during the first quarter of 2020 – the highest first-quarter start for Latinos since 2008.

Future of Latino Entrepreneurship and the U.S. Economy

The survey shows the recovery and continued economic growth of Latino households, workers, and businesses are inseparable from the country’s long-term growth and stability.

It should not come as a surprise that Latinos are key to powering the U.S. economy to a better future.

According to the data, despite a 16% point homeownership gap between Latinos and non-Hispanic Whites, Latinos were 25% more likely to own a real estate investment outside of their primary residence than non-Hispanic White households.

“Today, the wealth gap between Latinos and non-Hispanic White households threatens the long-term viability of the U.S. economy, particularly as it creates downward pressure on demand growth,” the survey stated. “According to the Survey of Consumer Finances (SCF), in 2016, non-Hispanic White households held $8.30 in wealth to every $1 for Latino households, a 20% gap reduction than three years prior.”

The numbers also pointed out that U.S. Latinos are young in age, and so are their assets. 

Furthermore, a separate report by the Latino Donor Collaborative also “found that Latino GDP grew 72 percent faster than non-Latino GDP over the entire period from 2010 to 2018.”

Barriers of Latino Economy Growth During Pandemic

Despite these big gains, Latino and other people of color still experience higher poverty rates and greater gaps in education and health opportunity than their White peers. The coronavirus pandemic has had an overwhelming impact on many Latinos. COVID-19 also stands to exacerbate the nation’s sizable affordable housing shortage.

Millions of Americans are facing housing cost burdens, especially amid the current state of economic instability, according to America’s Rental Housing 2020 report.

Over half a million sleep on the streets any given night.

Black renters had the highest-burden rate in 2018, at 55%, followed closely by Latino renters at 53%. The cost-burdened shares of minority renters climbed sharply from 2001 to 2018. Indeed, the share of Hispanic renters facing cost burdens jumped by 7.2 percentage points over this period.

Latinos also are more likely to face child care deserts, hospital deserts, and food swamps.

Despite having some of the most important jobs in the country, countless essential workers face serious risks without much help during the pandemic, and coronavirus is quietly killing off Latino workers.

According to recent data from the National Bureau of Economic Research (NBER), job loss impacts Latinos at higher rates than their peers during the pandemic.

Moving forward, lawmakers and community leaders must focus on an equitable approach to solving the issues highlighted by the pandemic. Many believe that while barriers persist, the goals are not unachievable.

In the end, experts say Latinos will power the U.S. economy to a better future.

“We are excited to have statistical evidence that proves what Latinos living in the U.S. have always known to be true: we are a hard-working, productive, and essential part of American economic growth and American society,” Ana Valdez of the Hispanic Chamber of Commerce, recently told CNBC.