Realtor.com® Survey: More Than Half (58%) of Hispanic Home Shoppers are Buying Their First Home

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03/16/2022 - 08:00 AM

Building generational wealth is a major driver of home purchases, with 73% of survey respondents saying they plan to pass a home down to their children

SANTA CLARA, Calif., March 16, 2022 /PRNewswire/ -- While Hispanic Americans have historically underrepresented as homeowners, progress is being made toward closing the gap. A new survey released today by Realtor.com^® in conjunction with The National Association for Hispanic Real Estate Professionals (NAHREP) found that 58% of Hispanic American home shoppers are looking to buy their first home. This is substantially higher than the population at large, where first-time buyers make up 34% of all home buyers nationally according to the National Association of Realtors. The survey also showed that homeownership can be viewed as a way to build generational wealth, that many Latinos plan to pass a home on to their children, and that they are likely to consider extended family in their home search process.

Realtor.com^® and HarrisX surveyed 1,002 Hispanic Americans online in Jan. 2022 to learn about their views on home buying and homeownership.

Closing the homeownership gap for Hispanic Americans
The survey found that 41% of respondents own the home that they live in, which is lower than the national average of 66%, according to census data. However, 39% of those surveyed are currently looking to buy a home, which suggests that Hispanic Americans are making strides toward closing the homeownership gap.

"As Latinos are predicted to account for 70% of new homeowners over the next 20 years, insights into Latino homebuying will be critical to understanding how to sustain growth in the housing market," said Gary Acosta, Co-founder and CEO of NAHREP.

Building generational wealth
Twenty-three percent of those surveyed said that they are or would be the first generation in their family to own a home. Additionally, 71% of respondents/their siblings haven't inherited a family home, but an incredible 73% plan to pass a home on to their children someday. With home values increasing at staggering rates over the last few years, wealth gained from owning a home over the long term could be significant. The 2017 Census showed that homeowners' median wealth was 89 times higher than that of renters.

"Homeownership can be a way to build generational wealth for families, but there are significant barriers to entry, especially in today's high-priced and fast-moving housing market," said George Ratiu, manager of economic research, Realtor.com^®. "There are a number of programs available to help first-time buyers break into the market, but many people either don't know that these programs exist or don't know where to start in finding one that works for their situation."

Down payment assistance can help, but awareness is low
There are a number of programs available to help first-time homebuyers break into the market, but awareness of these programs is low. More than half (55%) of non-homeowners have neither used nor heard of these programs. However, 35% of homeowners surveyed had successfully used one of these programs, showing that the programs do work and increasing awareness of them is important in continuing to close the homeownership gap for Hispanic Americans.

"At Realtor.com^® we believe that everyone should be able to create a comfortable home for themselves and their families. We want to be a resource for information that helps people feel empowered to buy their first home," said Mickey Neuberger, CMO, Realtor.com^®. "To help first-time homebuyers navigate this tricky process, we developed a free First-time Homebuying 101 ebook, which is now available in English and Spanish, that provides information and tips on everything from financial readiness, to picking the right home, to navigating the offer stage and the closing process."

Considering extended family in the home buying process
The survey also found that while most respondents don't live in a household with more than two generations (83%), family is an important consideration during the homebuying process. Two-thirds (66%) of respondents would consider extended family in their home search. The most important considerations are:

Buying a home that is close to extended family (27%)
Having room for overnight visitors (22%)
Buying a home that can accommodate extended family living in the home long-term (17%)

For more information, download NAHREP's State of Hispanic Homeownership Report or visit realtor.com/espanol

Survey methodology:
This survey was conducted online within the U.S. from Jan. 14-25, 2022 among 1,002 U.S. adults who identify as Hispanic by HarrisX. The sampling margin of error of this poll is plus or minus 3.1 percentage points. The results reflect a nationally representative sample of Hispanic U.S. adults. Results were weighted for gender, age, region, education, and income where necessary to align them with their actual proportions in the population.

About Realtor.com^®Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com^®.

Media Contact
nicole.murphy@move.com

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