Building generational wealth is a major driver of home
purchases, with 73% of survey respondents saying they plan to pass
a home down to their children
SANTA CLARA, Calif.,
March 16, 2022 /PRNewswire/
-- While Hispanic Americans have historically underrepresented
as homeowners, progress is being made toward closing the gap. A new
survey released today 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.
Realtor.com® and HarrisX surveyed 1,002 Hispanic
Americans online in Jan. 2022 to
learn about their views on home buying and homeownership.
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.
"As Latinos are predicted to account for 70% of new homeowners
over the next 20 years, insights into Latino homebuying will be
critical to understanding how to sustain growth in the housing
market," said Gary Acosta,
Co-founder and CEO of NAHREP.
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%)
For more information, download NAHREP's State of Hispanic
Homeownership Report or visit realtor.com/espanol
Survey methodology:
This survey was conducted online
within the U.S. from Jan. 14-25, 2022
among 1,002 U.S. adults who identify as Hispanic by HarrisX. The
sampling margin of error of this poll is plus or minus 3.1
percentage points. The results reflect a nationally representative
sample of Hispanic U.S. adults. Results were weighted for gender,
age, region, education, and income where necessary to align them
with their actual proportions in the population.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 20 years ago, and today through
its website and mobile apps is a trusted source for the
information, tools and professional expertise that help people move
confidently through every step of their home journey. Using
proprietary data science and machine learning technology,
Realtor.com® pairs buyers and sellers with local agents
in their market, helping take the guesswork out of buying and
selling a home. For professionals, Realtor.com® is a
trusted provider of consumer connections and branding solutions
that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
license from the National Association of REALTORS®. For more
information, visit Realtor.com®.
Media Contact
nicole.murphy@move.com
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SOURCE Realtor.com