Multigenerational homebuying and mortgage-readiness fueling Latino homeownership rates

While the Hispanic homeownership rate is still significantly lower than non-Hispanic homeownership — 48.6% compared to 74.4% — trends like multigenerational homebuying, co-borrowing and mortgage readiness led to year-over-year increases in Hispanic homeownership in 2022, according to new data from the National Association of Hispanic Real Estate Professionals (NAHREP).

NAHREP’S 2022 State of Hispanic Homeownership Report provides an analysis of the current state of Hispanic homeownership in the United States. The organization compiled the report using information from their annual Latino Buyers Survey, public data from the U.S. Census Bureau and, for a more qualitative look, in-depth interviews with 25 real estate professionals selected from the NAHREP 2022 Top 250 Latino Agents.

Hispanic homeownership rates increased by 0.2% from 2021 to 2022, NAHREP found, with an increase of 349,000 owner households year over year. This represents the eighth consecutive year of growth. Over 2.3 million new Hispanic homeowner households have joined the market since 2014, bringing the current total number of Hispanic-owned homes in the U.S. to 9.2 million and the Hispanic homeownership rate to 48.6%.

Hispanic and Latino buyers are also younger than the average buyer: 70.6% of Latino homebuyers in 2021 were younger than 45, and Latinos also represent the highest share of homeowners under age 25.

Additionally, NAHREP found that Latinos are still among the most likely to live in multigenerational households, with many young buyers purchasing homes to live in with their relatives. Seven out of 25 professionals surveyed in NAHREP’s Top Real Estate Practitioner Study noted an increase in multigenerational buying in 2022, while 19 out of 25 saw an increase in co-borrowing with family. The growing trend appears outside the Latino population, too, with the U.S. Census Bureau reporting that multigenerational households have increased by 800,000 since 2017.

“Parents are adding their kids who are working and living in their households as co-signers. It’s a team effort, and Hispanics are pretty united when it comes to that,” said Veronica Galaviz of Verbode in Oklahoma City. “Despite affordability challenges, the resiliency is there. People are able to make it happen.”

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