NAHREP: Hispanics The Only Demographic To Increase Homeownership In 2016

Posted by Patrick Barnard on February 06, 2017 No Comments
Categories : Residential Mortgage

For a second consecutive year, Hispanics were the only ethnic demographic in the U.S. to see an increase to their homeownership rate, which surged to 46.0% in 2016, which is up from 45.6% in 2015, according to the National Association of Hispanic Real Estate Professionals (NAHREP).

Also, Hispanics led in net household formations, adding a total of 330,000 households in 2016, NAHREP says in its annual State of Hispanic Homeownership Report, which will be officially released on March 28 at the organization’s Housing Policy & Hispanic Lending Conference in Washington, D.C.

This trend is rather remarkable when one considers that the overall homeownership rate in the U.S. is at the lowest level in almost 50 years. Hispanics have broken from this trend due to their high workforce participation and the fervent desire to own a home, NAHREP says.

In addition, initiatives from major corporations focused on Hispanic home buyers and a sharp growth of Hispanic entrepreneurs in mortgage banking and the real estate brokerage business are helping to advance this growth.

“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,” says Joseph Nery, president of NAHREP for 2016. “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.”

According to Census Bureau data, the overall homeownership rate dropped to 63.4% in 2016, which is down from 63.7% in 2015. At the same time, the African-American rate also dipped to 42.2% from 43.0%, and the Asian-American rate dropped to 55.5% from 56.5%.

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