The Mortgage Bankers’ Association recently released a report: ‘Housing Demand: Demographics and the numbers behind the coming multi-million increase in household’. In this study they “utilized a comprehensive analysis of data from 1976 to 2014, a period encompassing several market and housing cycles, to provide a projection of much stronger housing demand over the next decade.”
According by the report, “by 2024, demographic and economic changes will bring what could be one of the largest expansions in the history of the U.S housing market with a 13.9 million additional households.” But, what did they said about the impact of the Hispanic community?
The impact of demographics on the housing demand.
- The report mentioned that, over the next decade, demographics alone should account for 13.9 million additional households in the United States and that household growth will be led by 5.7 million more Hispanic households in 2024 than in 2014.
- Among homeowners, the number of new minority owner households will be more than one third higher than the number of new non-Hispanic white households.
- Of the projected growth in population among Hispanics, the homeownership rate is greater than the current average rate of 46 % for those age 40 and over.
- The millennials will be a key component of growth raising the ranks of households age 18 to 44 by 4.1 million. And, as we mentioned a couple of week ago, 21% of the millennials in the U.S. are Hispanic.
Many companies having seen the importance of these numbers are not waiting a decade to start to work with the Hispanic community. For example, just this week Wells Fargo announced a $125 billion lending goal to Support NAHREP’s Hispanic wealth Project which seeks to triple Hispanic household wealth.