Freddie Mac recently released a study on Hispanic homeownership titled, “Will the Hispanic Homeownership Gap Persist?”. The study aimed to forecast how Hispanic homeownership rates would fare over time. Currently, about 46 percent of Hispanic households are owner-households as compared to 68 percent for non-Hispanic White households. Freddie Mac looked at age, income, educational data and other metrics to conclude that, over time, the homeownership gap would close, albeit slowly. However, the study states that if you exclude recent immigrants from the rate, the gap closes more swiftly, nearly matching the homeownership rate for Whites over the next 30 years. On the surface, this looks like encouraging news however, the study did not take into account other variables such as the availability of affordable housing stock or access to mortgage credit. That said, while it is only one study, the report gives us some confidence that all things being equal, a lot more Hispanics will be homeowners in the coming years. You can download a full copy of the study here.
It has been long understood that a nation of stakeholders makes for a strong union, and for that reason, closing the minority homeownership gap has been a goal and a topic of discussion for decades.
Between 2008 and 2012, more than six million people lost their homes to foreclosure, property values lost almost 40%, and non-distressed home sales fell to all-time lows. It was, without question, the worst real estate market since the great depression. Not surprisingly, the historic dip in the market was followed by a decade-long bull market, the likes of which we have never seen before. Residential real estate is a cyclical market. The...
There is a saying that goes “when the tide rolls back, you can see who is swimming naked”. When the market is strong, it covers a lot of weaknesses. With interest rates moving up, inflation on the rise, and the economy heading towards a possible recession, we’ll find out soon how solid the foundation of the real estate market has been, and more importantly, which companies and agents have built a strong, recession-proof business.