A new report reveals that although home ownership in the U.S. Hispanic community increased in 2014, the growth rate slowed down in respect to previous years.
On Monday, the State of Hispanic Home ownership Report published a study showing that the rate of homeownership among Hispanics fell from 46.1 percent in 2013 to 45.4 percent in 2014. According to the study, this reduction was caused by the overall growth in the number of Hispanic households across the country. As a result, this shows that the net creation of Hispanic households increased at a faster pace than the number of homes owned actually by Latinos.
“Hispanics achieved modest gains in net new owner households this past year. However, the number of net homeownership gains for Hispanics has slowed over the past three years from an increase of 347,000 in 2012 to a notably smaller increase of 54,000 in 2014,” says the report, a publication of the National Association of Hispanic Real Estate Professionals, or NAHREP.
However, “from 1994 to 2005 the national homeownership rate increased by five percentage points but Hispanics gained nearly seven percentage points over that same period of time,” states the report.
From 2000 to 2014, Hispanics made up 50 percent of the “net growth of overall owner households” in the country. The Urban Institute forecast also released a research study in 2014 showing that Latinos will account for 55.5 percent of new homeowners between 2010 and 2020.
“The report also suggests that even higher Hispanic homeownership growth could be achieved under a stronger economy and policies that expand credit to lower- and middle-income Hispanics,” the report adds.
In 2014, the number of Hispanic homes in the U.S. grew by 320,000. That figure represents 40 percent of the total household growth in the nation and gives Hispanics the lead over any other group when it comes to household growth percentage. This means that Latinos will occupy seven million of the 17 million new homes that will be created between the years 2010 and 2025.