Latino purchasing power will drive housing sector growth—and the U.S. economy—for years to come. Latinos have an annual purchasing power of $1.7 trillion, and housing represents over 16% of the U.S. GDP. The Urban Institute estimates that 70% of homeownership growth in the next 20 years will come from Latinos. Here’s how to become the trusted real estate advisor in this massive and ever-growing niche.
- Gain and keep trust. A Latino client will stay with you for generations once trust is established. This will require time and patience in providing the tools and resources they need, which often aren’t directly related to home buying. School, community, banking, language assistance and even just an ear to listen to life’s challenges will often make the difference. Have a compassionate and long-term view in mind.
- Partner for growth. Having the correct partners will make the process for the customer and you much easier. It is essential to partner with a lender that understands first-time homebuyer products such as down payment assistance and affordable down payment products. This doesn’t mean that every client you work with will be taking advantage of the down payment assistance program, but providing options demonstrates that you are truly looking out for their best interests.
- Curate the product. Latinos are among the most entrepreneurial in the U.S. and, therefore, often in need of self-employed loan products. There is also a high demand for individual tax identification number (ITIN) loan options for non-resident or international buyers. The demand for these products is at an all-time high, especially for those waiting for their immigration process to finalize.
- Plan for larger families. A high percentage of Latino homebuyers are purchasing with the goal of having multiple generations under one roof. The National Association of Hispanic Real Estate Professionals’ (NAHREP®) 2021 State of Hispanic Homeownership report showed that Latino homebuyers are willing to move farther away in order to get a bigger home to accommodate larger families. The option for a bigger home with more land will many times outweigh the option of a shorter commute to work, making it important to open up the search to the suburbs. During the search, it’s not uncommon to find that the decision-maker may not even be the one purchasing the home.
Over the past decade, Latinos accounted for over half of the nation’s population growth and over 80% of labor-force growth. There are also 8.3 million Latinos aged 45 and under who are mortgage-ready but aren’t homeowners. Are you ready to become their trusted advisor and grow for years to come?
For more information, please visit https://nahrep.org.