More than 600,000 Latinos purchased a home with a mortgage in 2020, resulting in a 13% purchasing increase compared to 2019. Realtor.com notes that the pandemic accelerated many Latinos’ plans to become homeowners with low mortgage rates and lower monthly payments being an added incentive. The National Association of Hispanic Real Estate Professionals’ CEO says this marks the sixth consecutive year Latinos have driven homeownership growth in the U.S. According to data from the Urban Institute, Latino buyers made up more than 50% of homeownership growth during the past decade.
Homeownership has been particularly important in helping Hispanic families build wealth. The equity in that property accounts for 57.6% of Latino wealth. Those who own their homes have a median net worth of $164,000—versus $36,050 for Latino families overall.
"For Latino households, owning a home is a central part of building a solid financial foundation, and increasing wealth over time," says realtor.com® Senior Economist George Ratiu. "This preference became even more important during 2020, as the COVID pandemic accelerated many people’s reach for the safety of a home and the space to work, live, and school children."
Who's buying what kinds of homes?
Many Latinos are simply at the point in their lives when folks typically want to own homes. The median age of Latinos in this country is 29.8, which is typically when people start coupling up, starting families, and entering the housing market. Almost 1 in 3 Latinos is between the ages of 25 and 44, according to the report. That means many of them are first-time buyers.