Home purchases, new business starts and stock market investment are accelerating among the U.S. Hispanic population in spite of political headwinds, according to the 2018 Annual Report from The Hispanic Wealth Project, a non-profit organization supported by the National Association of Hispanic Real Estate Professionals (NAHREP).
Based on the report, the Hispanic homeownership rate rose in 2017 for the third consecutive year to 46.2 percent, an increase from 45.6 percent in 2015. However, the current political environment and uncertain immigration policies have caused many Hispanics-- even those with permanent residency status-- to hold off on making long-term financial commitments, such as retirement savings or purchasing a home, the report found.
The report, released today at The Hispanic Wealth & Real Estate Conference and Latina Wealth Building Series in Miami, also found the median net worth of Hispanics rose dramatically from $13,700 in 2013 to $20,600 in 2016. The report cited data from the Census Bureau and other government entities but noted that consistent data on household wealth is still lacking.
The report highlights positive trends in homeownership and entrepreneurship including:
- Hispanics are the only ethnic demographic to have increased their homeownership rate for three consecutive years.
- Women entrepreneurs represented 50 percent of all Hispanic small business starts
- However, there is still progress to be made in the arena of savings & investments as the report notes 83 percent of all Hispanic Millennials have nothing saved for retirement
"With the youngest population and the highest work force participation in America, it is clear that the financial well-being of the Hispanic community is critical to the economic strength of the whole country," said Jerry Ascencio, Chairman of the Hispanic Wealth Project.
In 2014, The Hispanic Wealth Project established a goal to triple Hispanic household wealth in 10 years. The Project drafted a blueprint that suggested that the goal could be achieved if substantial progress is made in three areas: the homeownership rate, increasing the number of Hispanic owned small businesses with more than $1 million in revenue, and increasing Hispanic investment participation in non-cash financial assets such as stocks and bonds.
"Closing the knowledge gap about the tools for building wealth is the most significant component of the Hispanic Wealth Project," Ascencio noted.
The Hispanic Wealth Project pointed to the progress of several corporations and organizations including Wells Fargo, Alterra Home Loans, New American Funding, Freddie Mac, MassMutual, Reology and Bank of America, which have made commitments to help advance the goals of the Hispanic Wealth Project.
NAHREP is supporting the Hispanic Wealth Project by investing in disseminating the disciplines expressed in the NAHREP 10 (http://nahrep.org/nahrep-10-