Last week we covered household growth and capacity, the first two of the three key drivers that were considered when projecting the potential impact of Hispanic homeownership gains on the overall U.S. Economy. Today we are going to go over the last key driver: Sentiment.
When NAHREP talks about sentiment in their 2016 Hispanic Wealth Project Annual Report, they are referring to whether or not Hispanics want to buy a home.
According to the report, “In a recent Fannie Mae National Housing Survey, 80 percent noted homeownership as the best investment and 70 percent indicated it is the best way to build wealth…At a 50 percent Hispanic Homeownership rate, the median Hispanic household would be an owner household, adding home equity to their asset base, which is often the resource of seed funding for small business and college tuition for the children of homeowners”.
But there are a few barriers that need to be resolved in order to help the members of the Hispanic community become homeowners. The report continued, saying that:
“Since the Hispanic population is also driving household and homeowner gains in the U.S. it is imperative for the housing industry to resolve these barriers. Failure to do so could make homeownership unattainable for many Hispanics, materially impacting the health of the overall U.S. housing economy and further widening the wealth gap”.
Some of the barriers are increasing financial cost, limited inventory, and tight credit. Tomorrow we will go into more detail about the barriers and the objectives of NAHREP to solve these issues.