Celebrating Hispanic Heritage Month

Did you know that Hispanic Heritage Month is not the calendar month of September? It's actually the 30-day period between September 15 through October 15. Hispanic Heritage Month is an annual celebration of the history and culture of the U.S. Latin and Hispanic communities. During this month, we commemorate how those communities have influenced and contributed to American society at large as well as the real estate industry.

The day of September 15 is significant because it is the anniversary of independence for Latin American countries Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico and Chile celebrate their independence days on September 16 and September18, respectively. Also, Columbus Day or Día de la Raza, which is October 12, falls within this 30 day period.

Did you know that on a national level Hispanics/Latinos accounted for 11% of REALTORS® in 2021, the largest of any non-White ethic group? For Texas REALTORS®, the percentage is 17% according to our data. And did you know that the Hispanic Homeownership rate is 48.4% and that Latinos will account for 70% of the homeownership growth over the next 20 years? You can learn more about the current homeownership rate and its impact on the real estate industry in NAHREP's 2021 State of Hispanic Homeownership Report.

Here are some key takeaways from the report:

Homeownership Trend Remains Consistent

The Hispanic homeownership rate increased to 48.4%, up nearly one point from 2019’s 47.5%, and remains on track of an average increase of nearly one percentage point every two years.

Latinos Accounted for Lower Share of Homeownership Growth

Latinos accounted for 20.6% of homeownership growth since 2017, compared to 78.5% of homeownership growth between 2011 and 2017.

First-Time Buyers Facing Challenges Using Low Down Payment Options

Latinos are twice as likely to use Federal Housing Administration financing, yet FHA borrowers faced a competitive disadvantage in last year’s tight housing market. Nearly half (44%) of respondents in NAHREP’s 2021 Top Real Estate Practitioners Survey reported working with FHA clients to switch them to conventional products, and 17% reported that FHA borrowers gave up on their home search and continued renting.

Regional Insights

Despite a housing inventory shortage and affordability issues, Texas, Arizona, and Tennessee had the largest influx of Latinos in 2021, while California saw the greatest decrease in net migration.

Chances for Growth

Texas markets such as McAllen, El Paso, and Brownsville showed the greatest opportunity for growth for mortgage-ready Latinos.