The National Association of Hispanic Real Estate Professionals® (NAHREP®) has issued analysis of 2021 homeownership data from the U.S. Census Bureau’s Current Population Survey/Housing Vacancy Survey, released this week. The data shows that Hispanic households saw an upward trajectory in 2021 despite facing one of the most difficult housing markets for first-time homebuyers in history.
In 2021 the Hispanic homeownership rate increased to 48.4%, adding a total of 657,000 new Hispanic owner households since 2019. Additionally, Hispanics added 1,025,000 net new households, accounting for 27% of household formation growth over the last two years.
While the Latino homeownership gains were positive, they trailed the overall market for the first time in three years, NAHB noted. This trend underscores critical barriers Latinos face in the market: Latinos are overwhelmingly concentrated in the areas of the country with the most acute housing shortages, first-time homebuyer products such as Federal Housing Assistance (FHA) faced historic hurdles particularly for those who are self-employed, the real estate industry lacks representation and diversity reflective of its consumer base, and Latinos remain the most under-invested demographic today.
“While the data shows that Latinos will account for the super-majority of growth in U.S. homeownership, the Latino market remains the most undercapitalized segment in the housing economy,” said Gary Acosta, NAHREP co-founder & CEO.
For a full breakdown and analysis of Hispanic homeownership trends, the National Association of Hispanic Real Estate Professionals will be releasing its 2021 State of Hispanic Homeownership Report on March 16, 2022, at the 2022 National Convention and Housing Policy Summit.