Hispanic home ownership saw its largest annual increase in two decades last year.
As buyers – especially younger ones – flooded the market in 2020, the number of households with Hispanic homeowners rose more than 700,000 to nearly 9 million, according to the National Association of Hispanic Real Estate Professionals. The Wall Street Journal reported the first analysiswhich was released on Wednesday.
Hispanics account for more than half of US home ownership growth over the past decade, despite making up only 18 percent of the population. An estimated 48 to 49 percent of Hispanic households owned their homes in 2020, up from 47.5 percent in 2019.
That number has risen for six straight years, and the trend is expected to continue. According to a forecast by the Urban Institute, between 2020 and 2040, 70 percent of new homeowners’ households will be Spanish.
Future home ownership growth is forecast to be driven by minorities. Black home ownership also rose to 45 percent last year after 42 percent in 2019.
Areas with the greatest growth in Hispanic homeowners include Houston, Dallas, Orlando, Seattle, and Fresno. Hispanic Americans tend to be younger and have less student debt than other groups, including non-Hispanic whites.
The median real estate value of homes Latinos bought with a mortgage in 2020 was $ 265,000, according to the report. It was $ 313,000 for all races. The discrepancy is due in part to a 29 percent difference in median household income between white and non-white Hispanics.
The report also found that closing costs for Hispanic buyers were $ 599 higher than white buyers paid for conventional mortgages and $ 1,410 higher for Federal Housing Administration mortgages, in part because their median down payment versus 3.5 percent 10 percent for the general population. FHA loans require lower down payments but are more expensive.