Hispanics to Begin Bridging Gap in Homeownership Rate

CENTURY_21_Affiliated_Hispanics_to_Begin_Bridging_Gap_in_Homeownership_Rate

The Hispanic homeownership rate is trailing behind the white homeownership rate, at 26 percent below the white homeownership rate in 2015—a catch-up, though gradual, from 29 percent in 1995.
 
Hispanics could, however, make strides to bridge the gap in the future, according to a recent Insight from Freddie Mac. The Insight determines the disparity between the Hispanic homeownership rate and the white homeownership rate will lessen 3 percent by 2025 and 5.1 percent by 2035, with differing shares for long-time residents and new immigrants. (Homeownership rates tend to be low among new immigrants, but become higher with time.)
 
Age, education, and income impact the homeownership rate, attributable to the majority of the gap. There is an 11-year difference, for instance, in the average age of whites and Hispanics of Mexican origin.
 
"For decades, the homeownership rate of Hispanics has remained more than 20 percentage points below the rate for whites," says Sean Becketti, chief economist at Freddie Mac. "This gap has narrowed in the last 25 years, but very slowly.
 
"These populations are growing and aging at different rates, with the average age of whites increasing by six years over the next 45 years compared to nearly 10 years for Hispanics. If these Census projections about age distributions are realized, the white/Hispanic homeownership gap is likely to narrow by 20 percent by 2035. In addition, changes in other factors like income and education should further reduce the Hispanic homeownership gap."
 
Source: Freddie Mac  
Reprinted with permission from RISMedia. ©2017. All rights reserved.

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