Hispanic households dominate new homeowner growth

Hispanic households accounted for more than half of the nation’s new homeowners in the third quarter, evidence of the potential purchasing power of Latinos during the housing recovery.

According to Census Bureau data provided by Alejandro Becerra, former senior housing fellow at the Congressional Hispanic Caucus Institute, the number of Hispanic owner-occupiers grew by 288,000 from 6.21 million in the second quarter to 6.49 million in the third quarter.

Of 545,000 new household units in the third quarter, 53 percent were Hispanic households. The remaining 47 percent, or 257,000 units, consisted of other minority groups and non-Hispanic whites.

Minority households are taking advantage of the lower end of the housing market where, Becerra said, prices have hit the bottom. “It’s the only place where the possibility of buying is right now.”

In contrast, middle-income families and even upper income households are stalled because many of them owe more than their homes are worth “so the only hope for the future has to come from the younger households who are able to buy now,” Becerra said.