Latinos Aren’t Just Home Buyers, but Real Estate Investors and Builders
Numbers don’t lie and they show a skyrocketing trend for Latinos.
Hispanics are poised to penetrate all levels of real estate. That was the message a panel in the 2020 digital edition of L’Attitude tried to get across to all viewers.
The panel America’s Housing Market is Built on a New Foundation was hosted by CNBC Real Estate Correspondent, Diana Olick, who pointed to exciting numbers in terms of home purchases.
While only 47.5% of Latino households owned homes — compared to the overall rate of 65% — the Latino segment is showing sustained growth.
“This is the fifth consecutive year of growth in Latino homeownership and here is an amazing statistic I think, between 2009 and 2019, Latinos made up fifty one and a half percent of net growth in homeownership and that’s compared with just one and a half percent of non-Hispanic white growth in homeownership,” Olick said. “So, that seems to be what’s seems to be driving homeownership in this nation.”
Gary Acosta, co-founder and CEO of the National Association of Hispanic Real Estate Professionals (NAHREP), and expanded on the reason behind the new tendency of Latinos becoming homeowners.
“I think there are two things primarily that are driving that. Number one is a real passion for homeownership that Latinos tend do have, and I think that is driven by their commitment to the family: family is central to Latino culture.” Acosta said. “Secondly is the youth of the Latino population, a full decade younger than the general population, fourteen years younger than the non-Hispanic white population. They are just entering their prime home-buying years.”
However, this demographic will eventually need guidance on the market, and, as Ryan Schneider, CEO and President of Realogy, said, Latinos are ready to explode as realtors.
“Just like we like the trend of Latino home purchases that you talked about driving a lot of growth in the market, we like the growth in Latino agents representing all customers out there, but it’s still got room to go, and we’ll be a stronger economy if we have more direct representation there,” Schneider said.
Olick also noted that there’s been enormous growth in Latino investment property purchases.
This encouraging statistic was released earlier during the conference as part of the State of Hispanic Wealth Survey that found Latinos were 25% more likely to own an investment property outside their primary residence than their non-Hispanic white counterparts.
“I think the fact that it’s a tangible asset has a lot to do with that,” Acosta said, “Latinos are less likely to invest in things like stocks and securities; they want to invest in things that they can touch, they understand, that have utility as well.”
Another opportunity which is growing is home building.
“Not just investors, buyers, etc, but Latinos are home builders, by a large percentage,” Olick added, also noting Latinos have been especially hit by COVID-related lost jobs in home construction.
In this particular matter, Ryan Marshall, President, and CEO of Pulte Inc., one of the nation’s leading home builders, added Latinos have a critical role in home construction.
“The Latino population is so important to new home construction. It’s a population that is over-represented in the labor force in general,” Marshall said. “They tend to be more fully employed than other ethnicities which is just a wonderful benefit certainly to our business.