Hispanics are fueling homeownership growth in the U.S. They represented 62.7 percent of the increase in the U.S. net homeownership rate from 2008 to 2018, 81 percent of the U.S. labor force growth, and 32 percent of U.S. household formations, according to the 2018 State of Hispanic Homeownership Report, released Tuesday.
“Hispanic household growth continues to outpace that of the overall U.S. household growth and is anticipated to do so for the foreseeable future,” the report notes. Overall, the U.S. homeownership rate among the Hispanic population grew to 47 percent in 2018, marking the largest net gain since 2005.
“Despite concerns about housing inventory and changing government policies related to homeownership, the leading indicators, such as household formation, income trends, age, and consumer sentiment, suggest that Hispanics will continue to drive homeownership gains in America,” according to the report.
Hispanics have been the only ethnic demographic group to increase their homeownership rate in each of the past four years, the report notes. The Urban Institute has predicted that Hispanics will account for more than half of all new homeowners over the next several years and for 56 percent of all new homeowners by 2030.
The states and territories with the highest homeownership rates of Hispanics include Puerto Rico (68.56%), New Mexico (65.5%), Texas (56.86%), Wyoming (56.63%), and Michigan (56.13%).
This year's report also notes additional findings, including:
- Household formation: Hispanics formed 485,000 new households in 2018, accounting for 32.4 percent of total U.S. household formations. Between 2015 to 2025, Hispanics are projected to increase by 4.6 million households in the U.S.
- Population trends: At 58.9 million people, the Hispanic population represents a rising share of the U.S. population at 18.1 percent of the overall population. Hispanics are the nation’s largest ethnic minority and have accounted for more than half of total U.S. population growth since 2000, according to the report.
- Household composition: At an average of 3.7 persons per household, Hispanic households tend to be larger than the U.S. average of three. Hispanic households are also more likely to be multigenerational.
- Income trends: The Hispanic median household income grew to $50,486, the largest increase in income among all racial or ethnic population groups.
Source: “2018 State of Hispanic Homeownership Report,” National Association of Hispanic Real Estate Professionals (April 9, 2019)
