Three key drivers were considered when projecting the potential impact of Hispanic homeownership gains on the overall U.S. Economy in the 2016 Hispanic Wealth Project Annual Report, released by the National Association of Hispanic Real Estate Professionals (NAHREP). Yesterday we covered the first key driver and today we will focus on the second.
The report defined capacity as: the job growth, educational attainment and most importantly, workforce participation. So, what does capacity look like for this segment of the population?
Job Growth and Workforce Participation
According to the report, “Hispanics continue to drive U.S. employment growth, accounting for 66% of U.S. labor force growth and 73% of the increase in U.S. workers employed between 2000 and 2015.
In February 2016, the rate of unemployment for Hispanics was at its lowest since 2007 at 5.4%. The labor force participation of Hispanics is expected to increase, while that of non-Hispanic whites is expected to continue to decrease as the population ages and boomers exit the workforce, entering retirement.”
The report mentioned that, “The number of Hispanics ages 18 – 24 enrolled in college has more than tripled since 1993, increasing their access to higher paying jobs. Latinas in particular, made greater earning advancements between 2004 and 2014. Given these trends, Hispanics are expected to continue to be a primary driver of employment growth in the U.S. for the foreseeable future.”
As we have mentioned before, Hispanic millennials and Latinas can have a significant impact on the growth of homeownership. If you are a Hispanic thinking of buying a home, you should call your local real estate professional and take advantage of the opportunities available in your market.
*Next Wednesday we will cover the last key driver, Sentiment!