Last week we talked about the buying power of Hispanics in the U.S. and how in 2015, Hispanics controlled $1.3 trillion in buyer power. But where is that money coming from?
Recently, Vivala published a blog discussing the luxurious lives of young, affluent Latinos who make up a segment of the Hispanic community that is growing quickly. Of course some of them are getting money from their parents, but there are people like Carlos Slim, considered the second-richest man in the world by Forbes, or Jorge M. Perez, the founder of The Relate Group Real Estate Company, and many others, who have made their wealth on their own.
We mentioned in a previous blog that the average income of Hispanic households is increasing, and in a survey conducted by Think Now Research, they revealed that “on average, Hispanics earning $100K+ a year are 7 years younger than non-Hispanics in that income bracket.” Even more impactful is the fact that these Hispanics “represent 12.2% of all Hispanic earners.”
Not only are they spending their money on vacations and recreational activities, but they are also investing their money in real estate. The National Association of Realtors’ (NAR) 2016 Profile of International Activity in U.S. Residential Real Estate mentions that in 2016, non-residents purchased $44 billion worth of residential property and residents purchased $59 billion. Of these buyers, 21% came from Latin America and the Caribbean, and most of the foreign buyers from Latin America and the Caribbean purchased properties in Florida (36%), Texas (36%), California (14%), New York (14%) and Arizona (6%).
Now, some of these affluent Hispanics are U.S. citizens and business owners who create their wealth through their own hard work. Our point is that the Hispanic community is here, working hard and contributing to the U.S. economy in a greater way than they have been in decades.