In Lighter News: Latinx’ are Dominating the Housing Market
With children in detention centers, families being separated at the border, ICE raids, and general xenophobia and racism causing a lot of pain in the Latin American community, it’s not very often that one will read good news related to this group – a group that happens to be the backbone of our country’s economy. Many people are quick to blame Latin Americans for a number of things, despite the fact that there is no evidence to back up any of those claims.
But, there is one thing that Latin Americans are responsible for, and that’s growing the housing market, according to the Wall Street Journal. Hispanics now account for 63 percent of new U.S. homeowners, and without this group, the housing market would be a lot different – just like many of our country’s industries – which would be destroyed overnight if it weren’t for the leading labor force made up of Latin Americans.
Facing the Facts – (Not Fake News)
Based on the 2018 State of Hispanic HomeOwnership Report, there were nearly 60 million Hispanics living in the United States, which is roughly 18 percent of the entire population. Of this number, 47.1 percent of Hispanics own homes, which is the largest increase out of any other demographic in recent years. Latin Americans accounted for 32.4 percent of all U.S. household formations that year. In figures, that was 485,000 new homeowners who were Hispanic.
Currently, although, non-Hispanic White homeownership is still the highest out of any group at 73 percent in the first quarter of 2019 according to the Wall Street Journal, it’s predicted that by 2045 Whites will no longer be the majority. And, as the number of Hispanics in the U.S. will increase, so will their numbers in homeownership. In fact, according to Realtor Magazine, by 2030, 56 percent of all new homeowners will be Hispanic.
Why is This the Trend?
Hispanics are keeping the housing market alive. Why? Well, most people in this demographic find that homeownership is important, and in many ways, it’s just part of the culture. Many families will come together to buy real estate, with the hopes of eventually renting out their properties. Hispanics also often live together in larger family units, which can help with the mortgage and other costs associated with owning a home. According to the 2018 State of Hispanic Homeownership Report, the average Hispanic household is 3.7 persons. This is higher than the average U.S. household, and it’s usually multigenerational.
Why This is Important as a Real Estate Agent
As an agent, it’s always important to keep an eye on the trends and pay attention to the demographics. It’s also important to be culturally sensitive, and leave all preconceived notions “at the door” – or, back home. Hispanics do not see language as a barrier preventing them from owning a home – yet, it might be a good idea to learn some Spanish if you don’t know it already. Additionally, more and more young people are educated about the ins and outs of real estate, assuring that they won’t be taken advantage of by lender sharks – which, historically, has unfortunately happened to several minority groups.
Though, there is one barrier, and that’s deportation. According to the report, 95.7 percent of deportations are of Hispanics. Though being undocumented can present certain obstacles for any group, there are smaller lenders that are helping Latinxs to purchase homes safely. They do this by asking for information that an undocumented person can provide, for instance, a Tax ID number instead of a Social Security number.
So, the next time anyone in your network has something negative to say about Hispanics, just unload the facts. The housing market is right now – and the future of the market – relies heavily on this group, and it’s necessary that Latin Americans are given the same respect, attention, and care as any other human being – regardless of these statistics.