WASHINGTON (6/3/15)--The homeownership rate for Hispanics in this country has not kept up with the minority population’s rate of growth, according to a recent report from The Demand Institute.
Of the 4 million Hispanics who would like to purchase a home, only 1.5 million have the ability, the report found (National Mortgage News May 29).
And the disparity between those who want to purchase a home, and those who can, may only continue to widen, as by 2020 nearly 40% of all new households will be Hispanic.
“Hispanic households are still most likely to be family households,” said Jeremy Burbank, vice president at the Demand Institute and lead on the American Communities Demand Shifts Program, which authored the report (National Mortgage News). “Hispanics are moving to the suburbs for more space, better schools and more affordable housing--they’re looking for a place to raise their families.”
Some of the obstacles standing in the way of homeownership for Hispanics include poor credit, low income and insufficient funds for a down payment, according to the report.
Since hitting its peak of 50% in 2007, the homeownership rate for Hispanics has fallen to 44%.
“Hispanics were hit especially hard by the financial crisis and housing crash, and the outlook for homeownership is uncertain,” said Louise Keely, president of The Demand Institute, which is operated by The Conference Board and Nielsen.