Hispanic home buyers are buoying the home sales industry outpacing all other demographics in buying houses.
Three years ago, Hispanic homeownership was at a 50-year low. Since that time, Hispanic homeownership has grown 3.3%, whereas the overall American population has grown only 1.3%. Hispanics are 18% of the population, but are 63% of homeowner gains in the last 10 years, according to an article in the Wall Street Journal.
The WSJ article mentions that a rapid growth in education and income among Hispanics has led to this growth, but it has been hindered by a lack of affordable starter homes.
Hispanics and other minority groups were significantly impacted by the housing crisis of 2008.
"Local and national lenders have courted a Hispanic clientele, who represent an appealing growth market as overall loan volume has slowed," the article states. "Lenders have added Spanish-speaking loan officers and devoted additional resources to underwriting loans to borrowers who are self-employed or where multiple generations in a family are buying a home together."
In spite of the growth of homeownership and a desire to own homes among Hispanics, particularly young Hispanic people, homeownership is still lower than non-Hispanics (47% to 73%).
For Hispanic home buyers, this growth in the availability of lending sources will make purchasing easier. This, combined with lower interest rates and increasing inventories, might spark a new growth in homeownership among this important and growing group of Americans.