Hispanic Homeowners More Likely To Receive Financial Help Buying A Home
A new report by Redfin shows that Hispanics have made marked progress in homeownership over the last six years, often at a much faster pace than white or Black Americans, with 50.1% of Hispanic or Latino Americans owning their home in 2020, up from 45.4% in 2014.
Familial support is one reason for the rising Hispanic homeownership rate. More than half of Hispanic homeowners have lived with family without paying rent to help make housing payments, versus 38% of white homeowners.
Hispanic homeowners in the U.S. are also more likely than people of other races to receive assistance making their housing payments and to have adult relatives live in their home.
That familial support helps explain why the Hispanic homeownership rate has steadily risen over the last six years, with 50.1% of Hispanic or Latino Americans owning their home in 2020, up from 45.4% in 2014. The Hispanic homeownership rate has increased faster than the rate for white or Black Americans over the same time period.
Fifty-two percent of Hispanic homeowners have lived with family or friends without paying rent to save for housing costs, versus 39% of Black respondents and 38% of white respondents.
Additionally, Hispanic respondents are more likely than respondents of other races to have received direct help making rent or mortgage payments from parents and other family members.
The survey, which was conducted during the first week of June, had more than 1,500 respondents: 385 identified themselves as Hispanic, 238 identified themselves as Black and 499 identified themselves as white.
“Hispanic people in the U.S., especially those who are undocumented, tend to have less access to credit and higher debt compared to other racial or ethnic groups, making them more dependent on support from family to buy a home,” said Sebastian Sandoval-Olascoaga, an economist at Redfin.
He added, “With those limitations, support from family and social networks—such as living with family or friends without paying rent—allows Hispanic people to save money for a down payment or monthly mortgage costs. That ability to rely on family is one of multiple reasons why the Hispanic homeownership rate is steadily rising.”
Hispanic homeowners are also more likely than people of other races to have made financial sacrifices to afford their first home. Forty-four percent of Hispanic homeowners worked longer hours, 39% took an extra job and 38% drove an older car.
“For many Hispanic Americans, making social or personal sacrifices is a necessity if they want to buy a home,” Sandoval-Olascoaga said. “That’s especially true this year, as Hispanic people were more likely than people of other races to lose their jobs due to the pandemic. Plus, undocumented immigrants are unable to access financial help from the government and may have to rely on family, adding to the need for Hispanic families to make economic sacrifices.”
Just 10% of Hispanic homeowners reported making no sacrifices to buy their first home, versus 23% of white homeowners.