Report Charts Bold New Goals for 2034 and Demystifies Myths
SAN DIEGO, Sept. 13, 2024 /PRNewswire-PRWeb/ -- The Hispanic Wealth Project (HWP) and the National Association of Hispanic Real Estate Professionals (NAHREP) released their 2024 State of Hispanic Wealth Report, marking a decade of progress in advancing Hispanic economic mobility and household wealth. Established in 2014, the Hispanic Wealth Project proposed a bold goal to triple Hispanic household wealth by 2024. The goal was achieved two years ahead of schedule, underscoring the economic power of the Hispanic community.
The report provides a comprehensive analysis of the factors contributing to its success. It sets its sights on a new and equally ambitious objective: reducing the proportional wealth gap between Hispanic and non-Hispanic White households by 50 percent by 2034. To achieve this, the Hispanic Wealth Project has identified four key areas of focus: real estate, business ownership, financial assets, and asset protection. The expanded focus on asset protection newly acknowledges the importance of preserving the intergenerational transfer of wealth.
The 2024 report also addresses the misconceptions that fuel misleading narratives about Hispanic economic contributions. It debunks these myths with data-driven insights to better understand and encourage greater investment in Hispanic businesses and communities.
Myth 1: The wealth gap between Hispanic households and non-Hispanic White households is growing.
- Fact: While the nominal difference in median net worth remains significant, the proportional wealth gap has shrunk by nearly half since 2013. The gap narrows even further among households headed by individuals under 35, demonstrating the rapid economic advancement of younger Hispanics.
Myth 2: Hispanics predominantly purchase real estate in low- to moderate-income neighborhoods.
- Fact: In 2023, 71 percent of real estate purchases financed by Hispanic borrowers were in middle and upper-income census tracts. Hispanic homebuyers are also concentrated in high-cost areas and purchase homes younger than their non-Hispanic counterparts.
Myth 3: Very few Hispanic-owned businesses are employer firms.
- Fact: Hispanic-owned employer businesses are growing ten times the overall employer businesses, with a 26.1 percent increase since 2017. These firms are leading the market in growth across multiple dimensions, including the number of firms, employees, and revenue.
Myth 4: A high percentage of Hispanics are unbanked and don't utilize financial services.
- Fact: Nearly all Hispanic households (96 percent) have a transactional account with a bank or financial services provider, indicating a strong foundation for financial engagement and cross-selling opportunities within the community.
Myth 5: Hispanics don't have enough wealth to pass to their heirs, so they don't need an estate plan.
- Fact: 1.2 million Hispanic households boast over $1 million net worth. Collectively, Hispanic households control $8 trillion in assets, underscoring the importance of estate planning in safeguarding and transferring wealth to future generations.
"As we enter the next decade, the Hispanic Wealth Project is well-positioned to lead the process of closing the wealth gap and ensuring continued economic mobility in the Hispanic Community," says Sara Rodriguez, Chairperson of the Hispanic Wealth Project. "The 2024 State of Hispanic Wealth Report not only celebrates the milestone we set in 2014 but also serves as a roadmap for continued prosperity by 2034."
For more information on the 2024 State of Hispanic Wealth Report and the Hispanic Wealth Project's goals for 2034, please visit http://www.hispanicwealthproject.org/annual-report/ or contact [email protected].
About the Hispanic Wealth Project:
The Hispanic Wealth Project™ (HWP™), a nonprofit 501(c)(3) organization, is committed to empowering Latinos to fully participate and prosper in the U.S. economy through education, small business development, and sustainable homeownership.
About NAHREP:
The National Association of Hispanic Real Estate Professionals® (NAHREP®), a nonprofit 501(c)(6) trade association, is dedicated to advancing sustainable homeownership for the Hispanic community in America. NAHREP has a network of over 40,000 real estate professionals and 100 local chapters nationwide. It hosts several national events per year and publishes multiple industry cornerstone reports and multimedia content annually. Join us in advocating for policies that grow sustainable Latino homeownership; read our 2024 policy priorities here.
Media Contact
Angela Gonzalez, NAHREP, 858-622-9046, [email protected], https://hispanicwealthproject.org/
SOURCE NAHREP
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