As a first-generation Latina who works in the mortgage industry and who’s also a homeowner, I’m proud to provide some cultural insights and progress updates on how Hispanics are overcoming challenges in today’s market so you can be better prepared to help them achieve their homeownership dreams.
Let’s start by looking at recent data about Hispanic homeownership.
The Hispanic population is the youngest in the U.S.1
Age may be just a number, but when you’re considering the Hispanic demographic, it’s clear that age is the catalyst for homebuyer demand (and for significant business opportunities for years to come).
As reported by NAHREP’s 2024 State of Hispanic Homeownership Report, there are 65.1 million Hispanics in the U.S., with a median age of 31. That’s 8 years younger than the general population, which has a median age of 39. Young Hispanics have formed 676,000 new household formations in 2024 alone, and 8.5 million Hispanic households are headed by Gen Z or millennials who are entering their prime homebuying years. Additionally, Hispanics tend to buy homes at a younger age than typical first-time homebuyers, who average 38 years old.2
To put it mildly, there’s a lot of first-time homebuyer demand from the Hispanic population, as well as the need for guidance on preparing them for the homebuying process. (If you need any assistance with that, MGIC has plenty of Hispanic homebuyer resources in both English and Spanish!)
We all know that today’s homebuying market, with its low inventories and rising home prices, has challenges beyond the typical down payment hurdle. Here are 2 unique things Hispanic homebuyers are doing to mitigate those market challenges:
1. Many Hispanic households are multigenerational.
32% of Hispanic households were multigenerational in 2023.1 As I mentioned in a previous blog post, Hispanics have very tight-knit family units that provide physical, emotional, and financial support – especially when it comes to buying a home. Whether they're living with family members to save money for a future down payment of their own or co-buying a home with family members to qualify for a mortgage, Hispanics are open to multigenerational living as a strategy to overcome homeownership obstacles.
By the way, although my parents currently do not live with me (and my husband and 2 children), I keep that possibility in mind as my parents age. Any new house in the future will have to include space for them!
2. Hispanics are willing to move to more affordable markets.
Hispanics are moving from the western and coastal regions of the U.S. to opportunity markets that are considered more affordable, with “affordability” being based on whether a median-level income can afford a median-priced home.1 Currently, the top 5 opportunity markets include:1
- St. Louis, MO
- Pittsburgh, PA
- Beaumont–Port Arthur, TX
- Wichita, KS
- Amarillo, TX
Are you prepared to serve young Hispanic homebuyers?
The next generation of homebuyers will benefit from lenders and originators who are willing to share their personal expertise. Become their trusted advisor by guiding them through the homebuying process and providing resources about low-down-payment mortgages, down payment assistance (DPA) programs, mortgage insurance, how to improve borrower credit scores and more.
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