Hispanic and Latino homeowners are more likely to receive financial assistance when buying a home

A new report from Bids For shows Hispanic and Latino homeowners have made significant strides in home ownership over the past six years, often at a much faster rate than white or black Americans, with 50.1% of Hispanic or Latino Americans owning their homes in 2020, up from 45.4% in 2014.

ADVERTISING

Family support is one of the reasons for rising Spanish home ownership. More than half of Hispanic and Latino homeowners have lived with relatives without paying rent to pay for housing, compared to 38% of white homeowners.

Hispanic and Latino homeowners in the US are also more likely than people of other races to get help paying for their housing and to have adult relatives in their homes.

That family support explains why Spanish home ownership has steadily increased over the past six years, with 50.1% of Hispanic or Latino Americans owning their home in 2020, up from 45.4% in 2014. has risen faster than the percentage for white or black Americans over the same period.

Fifty-two percent of Hispanic homeowners have lived with family or friends without paying rent to save for housing costs, compared to 39% of black respondents and 38% of white respondents.

In addition, Spanish respondents are more likely than respondents of other races to have direct help with paying rent or mortgage from parents and other relatives.

The survey, conducted in 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 US, especially the undocumented, generally have less access to credit and higher debt compared to other racial or ethnic groups, making them more dependent on family support to buy a home,” said Sebastian Sandoval-Olascoaga, an economist at Bids For.

He added: “With those limitations, support from family and social networks — such as living with family or friends without paying rent — allows Hispanics to save money for a down payment or monthly mortgage payments. That ability to support family trust is one of the many reasons why the number of Spanish homeowners is steadily rising.”

ADVERTISING

Hispanic homeowners are also more likely than people of other races to make financial sacrifices to afford their first home. Forty-four percent of Spanish 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 Hispanics were more likely than people of other races to lose their jobs as a result of the pandemic. In addition, undocumented immigrants do not have access to government financial aid and may be dependent on family, increasing the need for Hispanic families to make economic sacrifices.”

Only 10% of Hispanic homeowners said they would not make sacrifices to buy their first home, compared to 23% of white homeowners.

Leave a Comment