Every year the National Association of Hispanic Real Estate Professionals (NAHREP) releases their Annual State of Hispanic Homeownership Report. A 24-page report designed to highlight “the homeownership growth and household formation rates of Hispanics as well as their educational achievements, entrepreneurial endeavors, labor force profile, and purchasing power in the United States”.
This month I will focus on their findings, and today I would like to highlight household formation and homeownership. To download the entire 2014 report, you can click here.
The growth of Household formations is one of the predictors of potential homeownership gains. In 2014, the number of Hispanic households grew by 320,000, accounting for 40% of the total U.S Household formation growth in that year alone. This represents the largest share of household growth for any racial or ethnic population group in the country.
What about homeownership?
In the last year, the rate of homeownership among Hispanics dropped from 46.1% in 2013 to 45.4%. The decrease, according to this report, was due in part to the faster pace of growth of the total Hispanic household formations, causing an overall drop in the Hispanic homeownership rate.
Here is a graph showing the rate of homeownership by year:
What we will see in the future?
The number of Hispanic owner households are expected to account for 180,000 – 220,000 new homeowners per year between 2010 and 2020, and even more in the subsequent years. In that same timeframe, The Urban Institute estimates Hispanics will account for 55.5% of new homeowners nationwide.