Property values ​​represent 52% of Latino household assets, due to both Latin American principal ownership and investment real estate assets.

Latinos have achieved historic levels of real estate and property gains in recent years, putting demographics on track to meet the Hispanic Wealth Project (HWP) goal of achieving a 50% homeownership rate in the country. over the next five years, according to the National Association of Hispanic State of Wealth Report of Hispanic Real Estate Professionals (NAHREP) (SHWR).

Currently, Latinos have a homeownership rate of over 48%. The median wealth of households in the demographic group also made great strides from 2013 to 2019, going from $ 15,150 to $ 36,050.

Property values ​​represent 52% of Latino household assets, due to both Latin American principal ownership and investment real estate assets.

Gary Acosta

“Latinos continue to lead business start-ups, labor market participation and homeownership growth, surpassing that of other segments of the population,” said Gary Acosta, CEO and co-founder of NAHREP, in a statement.

Latinos increased investment property ownership rates between 2016 and 2019, increasing their investment property ownership by 33.1%, the highest proportion of any demographic. Meanwhile, ownership rates for non-Hispanic investment properties have declined over the same period.

Over the next five years, 36% of Latinos plan to buy investment property, according to the HWP 2021 survey. This year alone, the number of Latinos looking to buy investment property was almost three times greater than the number of white non-Hispanic buyers looking to purchase investment property.

Among Latino renters, not being able to save enough money for a down payment is the biggest barrier to home ownership. “Polls suggest that there are inaccuracies in perceptions about the amount of a down payment needed to buy a house, especially among Latinos,” the NAHREP report notes.

Despite the gains in homeownership, household wealth, and other real estate assets, Latinos still struggle to save and invest overall. The demographic group reduced its pension contributions by 14.1% between 2016 and 2019, remaining the group with the lowest retirement account participation rate in the United States.

A limited understanding of how the stock market works has also contributed to low participation in retirement accounts, with 25% of Latinos saying they do not know how to invest in retirement accounts, 10% believing that investing in retirement accounts is not sure and 9% have no idea what it is. retirement accounts are.

“Latinos have kept track of all other demographics in retirement account participation, small business owners are not accessing capital at the rates needed to effectively grow their businesses, inventory shortages are slowing home buying and Latinos have been disproportionately affected by the pandemic, “a statement released by NAHREP said. “However, even with the setbacks, Latino household wealth is expected to continue on an upward trajectory, with wealth derived from real estate acquisitions offsetting some of the losses in corporate equity, savings and investment.”

Email Lillian Dickerson


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