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The Importance of the Latino Market in RE

Fannie Mae’s National Housing Survey examined the attitudes among the Hispanic population toward homeownership, getting a mortgage and the expectations for future homeownership, in order to have a better understanding of the potential impact of this fast-growing population on future homeownership demand.

In their report “Hispanics: A Key Driver of Future Homeownership Demand” they show that “Hispanic expectations for buying in the next three years are an encouraging sign for the ongoing housing market recovery.”

Over the last two years, Hispanics have become more likely than the general population to say that lifestyle benefits are the best reason to buy a house. Hispanics are more likely to prefer owning, particularly for lifestyle reasons:

  • 65% cite having less stress
  • 82% cite having flexibility in future decisions
  • 92% cite having a good place for your family or to raise your children

Hispanics are likely to be drawn to the financial benefits of homeownership:

  • 90% believe that it is the best investment plan
  • 84% believe it will help with saving for retirement
  • 84% want to build wealth

Among Hispanics who earn less than $50K per year, 75% have a perceived difficulty of obtaining a mortgage, that number drops to 50% with those earning over $50K.  The study also looked at age as a perceived factor in obtaining a mortgage:

  • 68% of those aged 18-34
  • 62% of those aged 35-44
  • 71% of those aged 45+

Hispanic owners (27%) and renters (53%) both are more likely than their general population counterparts to say they plan to buy a home in the next three years

“Despite greater concern about their ability to get a mortgage, Hispanics are more likely to expect to buy a home in the next three years.” Include the Hispanic market in your business plan, they are ready to buy!


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3 replies
  1. Todd Melcher
    Todd Melcher says:

    Those who underestimate the buying power of Latinos are destined to follow in the footsteps of those who underestimated the voting power of Latinos. The Latino population in 2010 was 16% nationally and significantly higher in the states bordering Mexico, by 2040, Latinos will make up 28% of the US population and over half the populations of Texas, California and New Mexico. Arizona will trail behind in those numbers as they continue to follow their anti-Latino obsessed leadership and continue to fail in benefiting from the surge in Latino buying power.

    Excellent article, I also very much enjoyed her article “Latinas and the Financial Power Shift”.

    Reply
  2. Fernando Herboso
    Fernando Herboso says:

    Hispanics now comprise the country’s largest and fastest growing minority group and as a business person that also speaks the language, I;m encouraged by the attention this is getting. .our biggest hurdle is mortgage availability and a comprehensive Immigration Reform. The plight from all immigrants has become a political football that is fumbled over and over again by both parties in Washington DC. The irony of this is the potential impact to our national economy.
    Great article Jeymy!

    Reply

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