Latino Community Contributes to U.S. Housing Market Growth
Within a 13-year period, the number of homeowners in the U.S. grew from 69.2 million, in 2000, to 74.7 million, in 2013 — and the best part about this number is that it indicates a much stronger economy after 13 years, even through the economic recession that was in full swing by 2007. Of these 5 million new homeowners, a shocking 47 percent are Latinos living in the U.S. This, confusingly enough, is both bad news and good news for the American Lation community.
The “housing bubble” that contributed to the economic recession caused many Latinos to lose their homes, and one spokeswoman for the Center for Responsible Lending has noted that as many as 25 percent of all Latinos who purchased a house during that bumpy time will lose their home, if they haven’t already. Furthermore, obtaining a loan for big housing purchases can be harder for Latinos — on average, people of color in America tend to have lower credit scores, which are often well below the minimum score now needed for lending. Although the recession is reportedly making a comeback from its darkest days, it appears that the households hit the hardest may still be suffering from the aftereffects.
On the other hand, there does seem to be a light at the end of the tunnel. A higher number of homeowners indicates a lower unemployment rate, and ultimately, a more stable economy. More financial freedom is indicated by the fact that, compared to 19 percent in 2005, custom-built homes now account for 30 percent of all home starts. It is likely that the Latino community comprises a big part of this group, indicating that financial stability within this particular ethnic group is becoming more feasible each year.
Experts in the housing industry are not ignorant of the power that the Latino community holds, either. According to a 2013 Fannie Mae survey, Latinos are more likely to own homes than any other major community in the U.S., and it is estimated that the number of Latino homeowners could increase by 16.8 percent by the end of 2014. Although it’s likely that the country will still encounter some bumps along the way, it’s clear that the general population is more aware of how influential, and important, the Latino community is becoming as we strive for economic stability once again.