When we talk about homeownership as a strong thread in the fabric of the American Dream, the idea conjures an emotional response connected to family, pride and sacred space. Though less idyllic, the potential to raise your own financial ceiling is an equally important part of the homebuying story. The economic impact of owning a home is extremely personal and to the same extent relevant on a grand scale, especially when it comes to shrinking the wealth chasm among our nation's demographics. In its 2016 Annual Report, the Hispanic Wealth Project notes that in 2011, the median white household had $111,146 in household wealth (aka net worth) compared to the $8,348 reported by the median Hispanic household. Both white and Hispanic households experienced financial gains in 2013 (to $141,900 and $13,700, respectively), though white households did so at an accelerated rate, resulting in wealth gap registering tenfold. Source: Hispanic Wealth Project 2016 Annual Report I...
- The Hispanic Wealth Project (HWP) just released its 2016 annual report, which stated that "homeownership is the cornerstone and genesis of wealth creation for the middle class," and therefore our strongest lever in shrinking the Hispanic wealth gap.
- In 2013 White households had $141,900 in household wealth compared to $13,700 reported by Hispanic households -- a tenfold difference in net worth.
- While the Hispanic desire to purchase is evident, the report lays out several barriers preventing this demographic from moving the needle at a faster pace, including tight inventory and difficulty in finding a loan.
- To address these issues, the HWP has identified suggestions for improvement, five of which are highly critical.