Hispanic Homeownership in 2022: A Growing, Younger, Vibrant Market

November 15,2021
What’s brewing in the Hispanic homeownership market for 2022? A handful of recent studies published in October 2021 provide a beneficial overview of this expanding buyer and seller segment.
 
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When it comes to Hispanic homebuyers in the U.S. purchase market, researchers at the National Association of Realtor’s (NAR) reported in the 2021 Hispanic Homebuyers Boost Sales study:
 
  • Buyers are a sizable and expanding share of the housing market, with women and Millennials being the fastest growing sub-groups.
  • Female buyers consistently grew faster than their male counterparts every month from May 2018 – October 2021, a 12.7 percent average year-over-year growth.
  • Millennials were the fastest-growing generation each month since 2018.
  • Hispanic buyers were 12.1 percent of all home purchasers from July 2020 – June 2021.
  • The number of buyers grew faster than non-Hispanics from June 2018 – February 2020, a 6.5 percent average year-over-year growth.
Hispanic buyers experienced more challenges at the beginning of the COVID-19 pandemic than their non-Hispanic peers.
Moreover, today’s typical Hispanic homebuyer is young, with 55 percent under 35 years-old compared with just 37 percent within the overall homebuyer population, 2021 Hispanic Homebuyer Profile report:
 
  • Almost half (49 percent) of buyers live in urban areas while 42 percent live in suburban communities. About 47 percent reported incomes over $50,000 a year, with 21 percent earning over $100,000.
  • The majority of buyers, 67 percent prefer remote-work arrangements.
  • Mirroring broader trends, buyers are searching for three-bedroom homes having two-and-a-half bathrooms.
  • Nearly 60 percent of buyers seek homes priced at $350,000 or less, with approximately the same proportion planning to move away from their current city or town.
  • Buyers seek homes near extended family, as well as spaces accommodating extended-family visits.
  • About 81 percent of buyers find it helpful to consider their family and friends’ opinions on homes they want to purchase.
 
Additionally, most Hispanic new-homeowners are likely to be married or single, between 18 – 34 years old, with nearly half having school-age children, 2021 Hispanic New Homeowner Profile report:
 
  • Similar to the overall market trend, 39 percent of recent buyers paid over the asking price and only 25 percent paid under. Also, 43 percent surpassed their original budget.
  • More than half of recent buyers were first-time homebuyers.
  • Most homeowners who bought within the last year were satisfied with their purchase, with 55 percent feeling they “neither underpaid or overpaid” for their home.
  • The pandemic was influential in 57 percent of recent homeowners’ decision to buy.
 
Finally, Hispanic potential home sellers tend to be young, married, and considering the needs of school-aged children on average, 2021 Hispanic Home Sellers Profile report:
 
  • Potential home sellers are more likely to be employed and less likely to be retired than the general population.
  • A higher proportion of homeowners who are considering selling in the next year live in urban areas compared to the total population.
  • Sellers are moving quickly to prepare and get their homes on the market, hoping to take advantage of the market’s current advantages and make a profit.
 
As there is a growing interest in Hispanic homeownership, this is a great opportunity for credit unions to leverage this information. Now is the time to reach out to members and share how a credit union can help Hispanic individuals and families be one-step closer to making their homeownership dreams come true.
by CU Members

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