Hispanic Homeownership Rate Drops to Lowest Level Since 1999

*This may be a little too nuanced for general media, but we think it’s important. Latino employment, education and income are growing, but home ownership is falling? In fact, before the Great Recession Latino homeownership was outpacing the national average. So why the change? The main reason cited, according to the National Association of Hispanic Real Estate Professionals, is “tight mortgage credit and higher financing costs.” In other words, the tighter mortgage rules put in place because of the recession now block many Latinos from buying homes.

It’s a double-edged sword with serious consequences. The loose lending practices of the past led to the deepest recession in several generations. But the tightening of those practices is stifling Latino home buying, and homeownership is central to wealth creation.  Creating wealth in the Latino community – homeownership, education, business development – is vital to the growth of the nation’s overall economy. Employment, education and income alone aren’t enough. VL

By Samantha Guzman, MReport

The Hispanic homeownership rate has dropped to its lowest level seen since 1999 primarily due to tight mortgage credit and higher financing costs, according to the National Association of Hispanic Real Estate Professionals (NAHREP). According to summary info from the 2014 State of Hispanic Homeownership report, the Latino homeownership rate dropped from 46.1 to 45.4 percent in 2014.

“The State of Hispanic Homeownership Report shows gains in employment, education, and income for Latinos, representing the huge influence Latinos have, not only in the housing market, but on the U.S. economy as a whole,” said Jason Madiedo, president of NAHREP in a press release. “Access to affordable mortgages for Latino homebuyers would help sustain a healthy housing market and benefit a general economic recovery.”

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