For the second consecutive year, Hispanics were the only ethnic demographic who increased their homeownership rate, according to a recent release from the National Association of Hispanic Real Estate Professionals.
The homeownership rate for Hispanics rose from 45.6 percent in 2015 to 46 percent last year. The release also said that Hispanics had the highest net household formations, with 333,000 more households added, increasing the total net numbers for homeownership.
Across all demographics, the overall homeownership rate fell .4 percent, from 63.7 percent in 2015 to 63.4 percent in 2016. Asian-American homeownership fell from 56.5 percent in 2015 to 55.5 percent in 2016, while African-American homeownership decreased from 43 percent in 2015 to 42.4 percent last year.
“With credit remaining tight and limited housing inventory in several markets, these numbers are extremely encouraging and a testament to the economic resilience of the Hispanic community,” said 2016 NAHREP President Joseph Nery.
While homeownership rates have fallen in the last few years, NAHREP suggested that Hispanics continue to buy thanks “to their high workforce participation and the fervent desire to own a home.” Additionally, in recent years, there has been an increase of Hispanics joining the real estate industry, either in mortgage banking or the brokerage business.
“As the mortgage industry continues to recognize the exceptional opportunities in serving the Hispanic market and adjusts accordingly, we expect these numbers to only improve,” Nery added.
More information on Hispanic homeownership will be available next month, when NAHREP releases its annual State of Hispanic Homeownership Report®.