Hispanics fuel sales of homes

Hispanics are the fastest-growing group of first-time homebuyers and have the purchasing power to push the U.S. housing recovery into high gear now if not for inventory shortages and other challenges, according to the 2012 State of Hispanic Homeownership Report.

“Despite a difficult economic environment and a tight mortgage market, Latinos are making gains in all the ways that make them ready for homeownership,” said Juan Martinez, president of National Association of Hispanic Real Estate Professionals, which published the report.

“Their biggest obstacle now coming into the market isn’t the credit crunch, it’s the lack of available housing to purchase,” he said. “They will play an increasingly significant role in the nation’s home-purchase market, if conditions permit.”

According to the report, the number of Hispanic homeowners grew from 4.24 million in 2000 to 6.69 million in 2012, an increase of 58 percent at a time while the rest of the U.S. population saw a net increase of only 5 percent.

The data indicate the Hispanic homeownership rate has dropped from 47.5 percent to 46.1 percent since 2010, largely due to an increase in population. The overall homeownership rate nationwide was 66.1 percent in 2011.

New Mexico has historically had the highest rate of Hispanic homeownership in the country, roughly the same as the overall population at 69.6 percent in 2011. Hispanics make up 47 percent of the state’s population, compared to 17 percent nationwide.

Other key statistics in the report revealed that Hispanics have accounted for more than half of the U.S. population increase over the past decade. In addition, Hispanics dominate household growth. More than 1 million Hispanic households were formed in 2012, compared to a decrease of 704,000 non-Hispanic white households.