How the U.S. economy misses out on an untapped Latino potential

By Victor Landa, NewsTaco (1.5 minute read)   

Fortune reports that a Zillow study released Thursday found that “In Hispanic communities, about 48% of income goes to the monthly rent check, up from 41% in 2011.”

Let’s put this in perspective. The rule of thumb is that in a healthy household budget one-third of the income should go toward housing. Let’s open this up a little further: “But that rule is currently holding true only for residents of primarily white communities, who pay less than a third—or about 31% of their income—to cover rent, the Zillow report said.”

Read more stories about the U.S. Latino economy in NewwsTaco. >> 

The problem is three-fold.

On the one hand, the percentage of income that Latino renters pay for housing has increased in the past 5 years, at the same time their wages haven’t kept up. That’s why the slice of their pay that goes toward rent has grown – that and the fact that rent has gone up.

And if Latinos are paying more for rent, they have less to save, if at all, for a down payment on the purchase of a house. This is true while the rate of Latino homeownership is growing – which is evidence of the narrative that Latinos are resourceful: we’ll find ways to make things happen, start a business, make ends meet, move to where the jobs are.

ACT NOW!

Sign a petition to tell U.S. Mayors: Protect Undocumented Immigrants – Declare Your City a Sanctuary of Safety! 
Click HERE 

The bootstrap myth

And also, it’s hard to get ahead when you start so far behind. Poverty is self-perpetuating because it lacks opportunity. If you’re making more money and paying less of a percentage on housing your bootstraps are bigger, that’s a fact. When your income is minimal and you pay almost half of it on rent, you have no bootstraps.

[Photo courtesy of Zillow]

Subscribe today!

  • This field is for validation purposes and should be left unchanged.

Must Read

Analysis: Julián Castro’s unsuccessful bid for president wasn’t really an ending

Victor Landa January 7, 2020

Julián Castro is out of the race for president, but that effort left him well-positioned for future runs, including the one for the second spot on a national ticket later this year. […]

Deadly earthquake rocks Puerto Rico, causing widespread power outage

Victor Landa

San Juan — A 6.4-magnitude earthquake struck Puerto Rico before dawn on Tuesday and was followed three hours later by an aftershock measuring 6.0. They were the largest in a […]

Latino-Owned Businesses May Be the U.S. Economy’s Best Bet

Victor Landa January 23, 2020

They’re called LOBs for short, but they’re working on a fastball. Latino-owned businesses are starting faster than the rest of the startup population and becoming a bigger part of the […]

At 100, Odon Cardenas, ex-POW still hears the ‘Screaming Mimis’

Victor Landa February 3, 2020

Excited at the chance to mark the milestone of his birth to the minute, Odon Cardenas stayed up until midnight, even as the whole family fell asleep. He was, after […]