Hispanic Homeownership Is on The Rise: know it, own it!
Hispanics today are actively seeking homeownership opportunities. They view owning a home as part of their social and economic well-being, and are more than ever financially prepared for it.
Hispanics are not only the fastest growing minority in the United States, but according to the Hispanic Wealth Project’s (HWP) 2016 State of Hispanic Homeownership Report, they’re young, educated, entrepreneurs, business owners that over index on mobile use, and 9 out of 10 would prefer to own a home rather than rent.
Hispanics need no convincing when it comes to homeownership
Because the Hispanic culture places such a big value on family well-being as a whole, wanting to own a home is part of the Hispanic DNA. Hispanics firmly believe that it is the best option for their future. From a 2016 Fannie Mae Housing Survey stated in the HWP report:
- 79% of Hispanics say they are better off owning rather than renting
- 87% say they prefer owning a home as a good place to raise children
- 82% say it’s the best way to build wealth
- 77% say it’s the best investment plan
Clearly, most Hispanics will strive for homeownership at some point in their life, as they inherently believe that owning a home is best for their family’s future. With no convincing needed, it’s mostly a matter of when and how will the right home-buying opportunities be presented to them to make their dream come true.
Hispanics have economic buying power
Hispanics’ wallets have been growing at a steady rate, with no signs of slowing. Quite the contrary, a recent Stanford Latino Entrepreneurship Initiative (SLEI) study shows:
- An increase in Latino-owned businesses from 3.3 million in 2012 to approximately 4.2 million by the end of 2016.
- Half of Latino-owned firms are owned by millennials, with 48% holding degrees from four-year institutions.
Hispanics don’t just have healthy wallets, they’re young and educated too. And even more noteworthy, these figures are double those of the national rate, according to SLEI.
Also, according to the HWP:
- Hispanics have a higher labor force participation rate than any other ethnic demographic.
- In 2015, the Hispanic household annual median real income across all income brackets had the largest gain among all other demographics, while poverty among Hispanics further declined.
Hispanic shopping, including for homes is increasingly mobile
You can reach and own the Hispanic home buying market from the palm of their hand, literally. Reaching the Hispanic market through mobile isn’t anything new. However, winning over their home-buying hearts will depend on:
- Brands speaking to them in their language and “getting” their culture. Millennials are English dominant or bilingual but “they intentionally interact with brands and companies that appeal to them through culture,” says the HWP report.
- Marketers who find a way into their unique digital and mobile behaviors, like how they interact and who they interact with on social.
- Companies that provide user-friendly digital platforms with an array of financial and homeownership opportunities. When it comes to tech-savvy millennials, financial institutions and the real estate sector need to step up their Hispanic mobile game.
All in all, while the Hispanic homeownership market is practically being served on a silver platter, financial institutions are just now catching on. The HWP report states that “Hispanics are declined for conventional home loans at a rate that is 7 percentage points higher than the national average.” And, that according to the 2016 Fannie Mae National Housing Survey “most (67 percent) say that it is a difficult time to get a home mortgage.”
It’s time for real estate agencies and financial institutions to equip themselves with a staff and digital platform that can cater to and unlock the home-purchasing power of the fastest growing demographic in the United States today. Hispanic millennials, and Hispanics in general place great value and become loyal to brands that they can identify with culturally, and that understand their preference and need for digital mobile interaction.