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Hispanic Americans have historically been underrepresented as homeowners, but that could soon change. If predictions hold true, longstanding homeownership gaps may be closing.
Fifty-eight percent of Hispanic home shoppers are first-time buyers, significantly higher than the rest of the U.S. population (34%). A new survey conducted by realtor.com® and the National Association for Hispanic Real Estate Professionals found an increasing presence of Hispanics in the housing market, and the organizations predict that number will continue to grow.
Latinos are predicted to account for 70% of new homeowners over the next 20 years, the study shows. “Insights into Latino home buying will be critical to understanding how to sustain growth in the housing market,” says Gary Acosta, co-founder and CEO of NAHREP.
Homeownership is an important tool for building generational wealth, and many Latinos want to pass a home on to their children. Seventy-three percent of survey respondents say they plan to pass a home on to their children someday.
Hispanic buyers also consider factoring in their extended family as they search for the right home. Seventeen percent of respondents say they want to buy a home that can accommodate extended family. Twenty-three percent of respondents said they are or would be the first generation in their family to own a home.
“There are significant barriers to entry [for homeownership], especially in today’s high-priced and fast-moving housing market,” says George Ratiu, manager of economic research at realtor.com®. “There are a number of programs available to help first-time buyers break into the market, but many people either don’t know that these programs exist or don’t know where to start in finding one that works for their situation.”
Realtor.com® has developed a free “First-Time Homebuying 101” e-book, available in English and Spanish, that provides tips on financial readiness, down payment assistance, and tips for navigating the process.