According to a recent report entitled, “Hispanics & Home Ownership: Closing the Gap” from the Demand Institute, Hispanics will account for “roughly 40% of all new household formations in the U.S. between now and 2020.” The report’s key finding is that homeownership is important to Hispanics, but only a fraction of the population is prepared to purchase a home.
These are the report’s findings:
- 76% of Hispanics think housing is an excellent investment.
- 68% of Hispanics say homeownership is an important goal.
- 52% of Hispanics considering moving would like to purchase a home, but only 19% are prepared to purchase one. That represents a gap of 2.5 million between those wanting to purchase and those prepared to purchase.
- For this population, the biggest barriers to purchase are down payment (31%), income (18%), and credit (15%).
Hispanics are “the future” of homeownership
In a recent article, U.S. Department of Housing and Urban Development Seretary Julian Castro elaborated on the significance of the Hispanic home buying population stating, “for the work that HUD does, and the housing market in general, Hispanics truly are the future.” Secretary Castro made those comments in reference to a 2014 report from the National Association of Hispanic Real Estate Professionals that highlighted an increase in 320,000 Hispanic households in 2014. That represented 40% of the total U.S. household growth for the year.
Supporting a path to homeownership
As the Hispanic population grows, the housing industry will have to respond to the traditional home buying barriers that exist: income, credit, and down payment.
TSAHC has programs and resources to help make homeownership a reality. We created the Texas Financial Toolbox which is an online directory of nonprofit housing and financial counselors who provide home buyer education, financial education and credit counseling to consumers who may not be ready to purchase a home.
And, for those who have good credit but still lack the down payment, TSAHC provides a grant for down payment assistance to low and moderate income home buyers who qualify. In addition, eligible first-time home buyers can also take advantage of an annual mortgage tax credit program that helps make homeownership more affordable.
For lenders and REALTORS® looking to market to Hispanics whose primary language is Spanish, TSAHC provides program brochures in Spanish. TSAHC staff is available to answer questions in English and Spanish from consumers who need assistance navigating the home buying process. Implementing services and programs like these ensures we are preparing the next generation of homeowners in Texas.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.