58% of Hispanic Home Shoppers are Buying Their First Home

While Hispanic Americans have historically underrepresented as homeowners, progress is being made toward closing the gap. A new survey released by Realtor.com in conjunction with The National Association for Hispanic Real Estate Professionals (NAHREP) found that 58% of Hispanic American home shoppers are looking to buy their first home. This is substantially higher than the population at large, where first-time buyers make up 34% of all home buyers nationally according to the National Association of Realtors. The survey also showed that homeownership can be viewed as a way to build generational wealth, that many Latinos plan to pass a home on to their children, and that they are likely to consider extended family in their home search process.

Closing the homeownership gap for Hispanic Americans

The survey found that 41% of respondents own the home that they live in, which is lower than the national average of 66%, according to census data. However, 39% of those surveyed are currently looking to buy a home, which suggests that Hispanic Americans are making strides toward closing the homeownership gap.

Building generational wealth

Twenty-three percent of those surveyed said that they are or would be the first generation in their family to own a home. Additionally, 71% of respondents/their siblings haven’t inherited a family home, but an incredible 73% plan to pass a home on to their children someday. With home values increasing at staggering rates over the last few years, wealth gained from owning a home over the long term could be significant. The 2017 Census showed that homeowners’ median wealth was 89 times higher than that of renters.

“Homeownership can be a way to build generational wealth for families, but there are significant barriers to entry, especially in today’s high-priced and fast-moving housing market,” said George Ratiu, manager of economic research, Realtor.com®. “There are a number of programs available to help first-time buyers break into the market, but many people either don’t know that these programs exist or don’t know where to start in finding one that works for their situation.”

Down payment assistance can help, but awareness is low

There are a number of programs available to help first-time homebuyers break into the market, but awareness of these programs is low. More than half (55%) of non-homeowners have neither used nor heard of these programs. However, 35% of homeowners surveyed had successfully used one of these programs, showing that the programs do work and increasing awareness of them is important in continuing to close the homeownership gap for Hispanic Americans.

“At Realtor.com® we believe that everyone should be able to create a comfortable home for themselves and their families. We want to be a resource for information that helps people feel empowered to buy their first home,” said Mickey Neuberger, CMO, Realtor.com®. “To help first-time homebuyers navigate this tricky process, we developed a free First-time Homebuying 101 ebook, which is now available in English and Spanish, that provides information and tips on everything from financial readiness, to picking the right home, to navigating the offer stage and the closing process.”

Considering extended family in the home buying process

The survey also found that while most respondents don’t live in a household with more than two generations (83%), family is an important consideration during the homebuying process. Two-thirds (66%) of respondents would consider extended family in their home search. The most important considerations are:

• Buying a home that is close to extended family (27%)
• Having room for overnight visitors (22%)
• Buying a home that can accommodate extended family living in the home long-term (17%)