Last month, Nielsen released a report focusing on the growing Hispanic influence in America. In their report, they highlight the fact that “In 2015, Hispanics controlled $1.3 trillion in buying power,” which is an increase of 167% since the turn of the century. Additionally, it is an increase of more than twice the 76% growth in non-Hispanic buying power during the same period. These numbers are expected to continue their growth, and it is projected that Hispanics will control $1.7 trillion in buying power by 2020.
Why the increase?
Part of the reason, as we mentioned last week, is that the average household income among Hispanics has risen. This rise in income is giving the Hispanic community the opportunity to put some extra money toward investments. If we look back according to The Pew Research Center, “Hispanic household wealth fell by 66% from 2005 to 2009,” and for many Hispanics, their wealth came from their home.
During the bust in the housing market, many Hispanics lost everything when they lost their homes. Despite this, one thing that the Hispanic community has not lost is the belief in the “American Dream,” and now that their income is increasing and more money is available, they are ready to invest again in real estate.
There is proof that this is already happening; The U.S. Census Bureau, reported that the homeownership rate among Hispanics is 45.1% for the second quarter of 2016 (last numbers reported).
If you are a Hispanic who lost your home, but now have the income and the willingness to buy again, call a local real estate professional and see what options are available for you right now.