Despite rising interest rates and tight inventory, Hispanics purchased homes in droves during the first quarter of 2018 according to the U.S. Census Bureau. The Hispanic homeownership rate increased from 46.2 percent in Q4 of 2017 to 48.4 percent in Q1 of this year. The increase corresponded with a net gain of more than 250,000 new homeowners, nationwide. While one quarter does not make a trend, the news helps validate the predictions made by Harvard, The Urban Institute, and NAHREP, that Hispanics will be the driving force in homeownership gains in the coming years. As mortgage companies are finally seeing the refinance boom come to an end, the purchase market will drive the industry and Hispanics are the key to growth. Will the housing industry make bigger investments to reach and serve Hispanic customers? My guess is ‘yes’, although I also expect some new players to emerge that recognize the opportunity and create new innovative models to reach this exploding market.
Realtors help families navigate the largest and most intimidating financial transaction of their lifetime. They serve as guides, counselors, cheerleaders, and protectors. Many of them remain friends of their clients for life. America is at its best when its citizens are stakeholders.
The usual solutions will not solve the current housing affordability crisis. Any solution that does not begin and end with a sustainable plan to radically increase housing supply is just noise. The barriers to increasing housing supply are complex and require the crucial cooperation of both public and private sectors, and more education.
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.