For the second year in a row, Hispanics were the only ethnic demographic that experienced an increase to their home ownership rate, according to new data from the National Association of Hispanic Real Estate Professionals (NAHREP). In 2015, the Hispanic homeownership rate was 45.6 percent. It is increased to 46 percent in 2016. Hispanics also led in net household formations, adding a total new increase of 330,000 households, according to NAHREP.
Overall homeownership rates in the U.S. are at their lowest levels in almost 50 years. Hispanics have broken from this trend due to their high workforce participation and the fervent desire to own a home, according to NAHREP. The group also cited initiative from major corporations focused on Hispanic homebuyers, and a sharp growth of Hispanic entrepreneurs in mortgage banking and the real estate brokerage business as helping to advance this growth.
“With credit remaining tight and limited housing inventory in several markets, these numbers ae extremely encouraging and a testament to the economic resilience of the Hispanic community,” said 2016 NAHREP President Joseph Nery. “As the mortgage industry continues to recognize the exceptional opportunities in servie the Hispanic market and adjust accordingly, we expect these numbers to only improve.”
According to the Census Bureau data, the overall homeownership rate dropped from 63.7 percent in 2015 to 63.4 in 2016. The African-American rate also dipped from 43.0 percent to 42.2 percent, and the Asian-American rate dropped from 56.5 percent to 55.5 percent.