In March 2024, the National Association of Hispanic Real Estate Professionals (NAHREP) released its 2023 State of Hispanic Homeownership Report. Using data from surveys conducted by various public and private entities, as well as qualitative interviews with top-producing buyer’s agents, this report provides insight into the homeownership trends of the Latino population in the U.S. In this article, we synthesize the main points from this report and highlight its key takeaways.

1. Hispanic homeownership rate nears 50 percent.

In 2023, the number of Hispanic-owner households went up by 377,000 from the previous year, rising to 9.5 million households, and the homeownership rate reached 49.5 percent. This rate almost reached its pre-housing market crisis high in 2007. Historically, Latinos have relied on low down payment mortgage options for home purchases. But there are signs that this trend may be shifting. In 2022, only 24.7% of Latinos purchased a home using FHA products, compared to 31.3% of Hispanic home purchase originations done through FHA. An increasing number of Latinos are opting for second homes and investment properties, signaling the desire and potential for wealth building among the population.

2. Latinos make up the youngest demographic in the U.S. and are driving household formation growth in the country.

With a median age of 30.7, Latinos make up the youngest racial or ethnic demographic in the country. More than two-thirds of the Hispanic population are Millennials or younger. Over the last ten years, Latinos formed an additional 4.6 million new households, an increase of 31%. Household formation is a key precursor to homeownership, and it has consequently led to Latinos being responsible for 25.6% of overall household formation growth in the U.S. Additionally, higher educational attainment and higher incomes are also helping fuel the homeownership growth trends among Latinos.

3. High interest rates and accelerated home price growth had a massive impact on prospective Hispanic home buyers.

In addition to the debilitating effects of high home prices on affordability, the high mortgage interest rates of 2023 made it increasingly difficult for potential Hispanic home buyers to qualify for mortgages. For people who were able to qualify, the loan amounts they got approved for dropped, while expected monthly payments went up. This required them to adjust their expectations in terms of home size or location.

4. Latinos tried to overcome housing challenges by moving to lower-cost areas, leveraging co-borrowers, or using localized financial incentives.

While affordability challenges persist, many Hispanic home buyers have moved their home search to more affordable locations—sometimes moving to different states or just to more affordable neighborhoods or areas in their current region. States that saw the highest Hispanic net migration between 2022 and 2023 were Texas, Pennsylvania, and Georgia. Many markets in the country saw an increasing share of Latino buyers using co-borrowers to mitigate the housing cost burdens. Furthermore, Hispanic home buyers have made significant use of localized financial incentives, such as rate buy-downs, down payment assistance, and other programs offered by homebuilders, state and local governments, and financial institutions.

5. Buyer’s agents play a vital role in helping potential home buyers navigate the complex financial transaction of purchasing a home.

Finally, the report emphasizes on the value of real estate agents in helping make homeownership a reality for their clients. They help their clients identify potential homes for purchase, guide them on financial incentives that are available, and even help get them financially prepared to qualify, to name a few of the services that a qualified real estate agent brings to the process. Given the cultural nuances and language barriers that exist among the Latino community, the guidance provided by real estate agents is particularly crucial in the homebuying process.

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