SAN DIEGO (PRWEB) September 25, 2020
The National Association of Hispanic Real Estate Professionals (NAHREP®) today announced the release of its fifth State of Hispanic Wealth Report at the L’ATTITUDE conference. The report focuses on Hispanic participation in homeownership, small business development, and wealth building. The findings show the recovery and continued economic growth of Latino households, workers and businesses are inseparable from the country’s long-term growth and stability.
The findings include:
- Even amidst the pandemic, there is a boom happening among first-time home-buyers and millennials, with the highest loan application activity among those two groups occurring over the last year in census tracts with majority Latino populations.
- Latinos were 25 percent more likely than their non-Hispanic White counterparts to own an investment property.
- 40 percent of Latinos who don’t currently own a home expect to purchase a home in the next 5 years. Higher than any other demographic.
- Latino employer businesses grew twice as fast as the general population. As of 2018, 1 in 4 new entrepreneurs was Latino.
- Latinos were more than twice as likely as their non-Hispanic White counterparts to invest in a business when they have extra cash.
- 13 percent of households who do not already own a business have plans to start one in the next 5 years.
- Latina owned-businesses are growing faster than any other demographic.
Savings and Investments
- Participation in retirement accounts shows signs of increasing, with 46 percent of survey respondents reporting at least one member of their household owning a retirement account.
- Lack of information more than a lack of funds is the top reason why Latinos avoid investing in stock-based investment products.
- Latinos are much more likely to invest in real estate or in businesses when given the option than the non-Hispanic White population.
Family, Education & the Future
- Latinos have extra money to invest, 44 percent report using it help out a family member.
- Latinos are also more likely to draw on savings to offset pandemic related income losses than non-Hispanic Whites.
- The study also indicated the strong correlation between education and household wealth showing Latinos with a bachelor’s degree had 48 times the wealth as Latinos with a high school degree and those with a post-graduate degree had 61 times the wealth as those with a high school degree.
- Despite reaching the highest unemployment rate since the Great Depression Latinos are the most optimistic group about the future.
The impact of the pandemic should not be underestimated and has the potential to slow Latino wealth growth if action is not taken. Some actions include:
1. Investing in culturally relevant financial education.
2. Providing additional support for the growing Latino homeowners and business owners through the adverse economic conditions brought on by the pandemic.
3. Educating the financial industry about the expanded role familia plays in Latino decision-making.
For the full report see Hispanic Wealth Report 2020.
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 over 40,000 real estate professional members and 100 local chapters nationwide.