Upscale Latinos and Housing

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Upscale Latinos & Housing | The KCM Crew

Last year Nielsen and the Association of Hispanic Advertising Agencies (AHAA) identified Upscale Latinos as the most influential segment since the Baby Boomers. Upscale Latinos are becoming a powerful population segment and have grown by more than two million since 2010.

“Recognizing the diversity within the Hispanic population in the U.S., Nielsen and AHAA embarked this year on a second study to further understand the behavior of upscale Latino households, what drives them toward upscale-luxury purchases and what drivers and detractors they share—or don’t share—with non-Hispanic upscale households.” Here are some important points that they found:

  • The number of Upscale Latinos with an annual income range from $50,000 to $100,000 is growing.
  • They account for 29% of Hispanic homes and more that 15 million Hispanics.
  • They spend about $500 billion each year, which represents 40 percent of the $1.3 trillion in Hispanic purchasing power.
  • At least 60 percent say they have strong ties to their Latino culture, and 30 to 40 percent voice a strong cultural duality.

According to “the upscale Latino 2.0” study by Nielsen/AHAA, this is the percent of upscale Hispanics that say within the next 12 months they will have sufficient resources to:

  • 47% to pay rent/mortgage
  • 39% to live in safe neighborhood/good public school
  • 33% to pay off credit card debit
  • 18% to qualify for a mortgage

One Powerful Segment, Three Different Mindsets

Nielsen and AHAA identified three distinct sub-mindsets with in this group and this is how they describe them:

  1. Luxury Seekers (42%) are mostly drawn to high-end products for individual rewards and to feel good about themselves. Thirty-four percent of upscale non-Hispanics fall into this sub-segment, making them less likely than upscale Hispanics to be luxury seekers.
  2. Sensible Seekers (40%) are pragmatic about their purchases and make high-end decisions when it makes sense. There is a greater distribution of upscale non-Hispanics in this sub-segment at 48 percent.
  3. Social Seekers (18%) see high-end goods and services as timeless and classic; they seek recognition and social status. Upscale non-Hispanics also make up 18 percent of this sub-segment.

Yes, we are all Hispanic/Latinos but we don’t like the same things! You can notice a difference among the 3 distinct sub-groups. So understand the differences and for those working the Luxury market, remember 29% of the Hispanic homes are upscale Latinos.

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