The real estate market is constantly evolving, and as we look ahead to the coming years, the Hispanic population is poised to play a major role in the industry. According to recent data, the Hispanic population in the United States is growing faster than any other demographic, and this growth is expected to continue in the years to come.
As the Hispanic population expands, so too will their impact on the real estate market. For real estate brokers to stay competitive, it is important to understand the role Hispanic people play in today’s real estate market.
“The future of homeownership growth will be coming from the minority population, especially the Hispanic population,” said Lawrence Yun, NAR Economist, at the 2023 National Association of Hispanic Real Estate Professionals (NAHREP) Homeownership and Wealth Building Conference held in Washington, DC on March 13th – 15th.
The conference brought together real estate professionals, industry experts and community leaders to discuss the state of the housing market, share insights on emerging trends and explore strategies for increasing homeownership and wealth building among Hispanic communities. Speakers at the conference discussed the growing importance of technology in real estate, strategies to address the affordable housing crisis in many Hispanic communities and the importance of diversity and inclusion in the real estate industry.
NAHREP’s 2022 State of Homeownership Report
Additionally, The National Association of Hispanic Real Estate Professionals (NAHREP) released its highly anticipated 2022 State of Homeownership Report, offering valuable insights into the state of the housing market for Hispanic Americans. The report examines a range of factors, including homeownership rates, household income and access to credit, offering a comprehensive picture of the challenges and opportunities facing Hispanic Americans in the housing market.
One of the key findings of the report is that Hispanic homeownership rates continue to grow, with the rate of Hispanic homeownership reaching 48.4 percent in 2021. This represents a significant increase from just a decade ago, when the rate of Hispanic homeownership was just 45.6 percent.
The report attributes this growth to a range of factors, including the increasing purchasing power of Hispanic Americans and efforts to increase access to credit and affordable housing.
Another important finding of the report is that Hispanic Americans are becoming increasingly involved in the real estate industry as agents, brokers and developers. This trend is important because it can help to ensure that the needs and perspectives of the Hispanic community are better represented in the industry. According to the report, the number of Hispanic real estate professionals has grown by more than 40 percent since 2015.
The importance of diversity and inclusion in the real estate industry
With a growing number of Latinos entering the workforce and becoming homeowners, it’s essential for the industry to reflect the diversity of the communities it serves. As more Latinos enter these fields, they bring with them a unique perspective and expertise that can help to better serve the needs of the Latino community.
The State of Homeownership Report addresses this and specifically states;
“Despite the critical role Latinos play in homeownership growth, housing production, and the overall housing market, Latinos remain underrepresented throughout the real estate industry. For example, the share of Latino Realtors is only 11 percent, and only 8.9 percent for loan officers. The lack of Latinos in leadership positions is starker.
Real estate companies and organizations are at the forefront of advancing homeownership. Increasing Latino professionals and leaders in the industry would bring a better understanding of cultural nuances that would better serve consumers, leading to greater innovation in program development.“.
The role of Latinos in the coming real estate market cannot be overstated. With their growing purchasing power, increasing homeownership rates and growing presence in the rental and real estate industries, Latinos are poised to shape the industry in meaningful ways.
Understanding the Latino population’s role in real estate is essential for brokers who want to stay competitive in today’s market. By recognizing the unique characteristic, needs and contributions to this group, brokers can build stronger relationships with Latino clients, help them achieve their homeownership goals and contribute to a more diverse and inclusive real estate industry.
As the head of inclusion and belonging for Keller Williams Realty International, Julia Lashay Israel advises, trains and coaches leaders, team members and agents to recognize and address diversity, equity and inclusion opportunities and challenges across the organization.