CHICAGO – Homeownership among Hispanic Americans is at an all-time high of 51%, according to the National Association of Realtors® 2024 Snapshot of Race and Home Buying in America. Over the past decade, some 3.2 million Hispanics have become homeowners—a 5.4% increase since 2012. Today, nearly 10 million Hispanic households own their own homes.
The Hispanic market represents a significant business opportunity for real estate agents who understand how to serve this diverse group of clients. NAR estimates that in several regions, at least a third of renter households could afford to become homeowners.
While there is no singular Hispanic or Latino experience, shared cultural values often impact homebuying decisions. Agents (Hispanic and non-Hispanic) share insights and tips to support this growing market segment.
Shifting demographics
Rates of U.S. Hispanic homeownership have consistently risen over the past decade, ranging from 28% in New York to 71% in New Mexico. However, many states with high Hispanic homeownership rates, including Vermont and Wyoming (both 65%), Iowa (61%), Michigan (59%), and Kansas (58%), rank low for Hispanic population percentage. Based on 2022 census numbers, Michigan, Wyoming and Kansas, for example, have Hispanic populations under 13% compared with the national level of 19%. The data suggests there is a considerable buying proportion in some states where agents traditionally haven’t been working with this demographic.
“It’s all about affordability,” says Alex Carbajal, broker-owner of RE/MAX Associates in Wichita, Kan. “Unlike the coasts, you can buy a brand-new home in the $200,000s in Kansas and enjoy lower taxes and cost of living.”
Renter affordability. In 28 states, the percentage of Hispanic renter households that can afford to buy a typical home exceeds the national rate of 19%. Among the states with the greatest affordability are West Virginia (55% of Hispanic renters can afford the median-priced home in the state), Mississippi (53%) and Vermont (48%). Affordability is high in most Midwest states, where about 30% of Hispanic households on average could be future buyers. In the Southeast, South Carolina stands out at 31%. Renter affordability among Hispanics is lowest in the West, with most states in the single digits. Wyoming is the exception at 23%, according to the NAR 2024 Snapshot report.
Median homebuying age. Another factor driving Hispanic homeownership is the U.S. median homebuying age, now 36. The National Association of Hispanic Real Estate Professionals’ 2023 homeownership report identifies Hispanics as the youngest U.S. racial or ethnic demographic with many reaching the median homebuying age in the next five years. New Hampshire and Alabama have the highest percentage of Hispanics in this age group, followed by Alaska, Minnesota, Oklahoma, Oregon and Tennessee, NAR says.
Importance of Homeownership
In a Realtor.com and HarrisX survey of Hispanic Americans in 2022, 39% of respondents were looking for a home. Homeownership is the primary source of wealth-building for many Hispanics, with home equity representing the largest share of total wealth at 33.3%, compared to the general population at 21.1%, according to the Hispanic Wealth Project. NAHREP, which allies with NAR to advocate for systems that elevate homeownership opportunity, reports Hispanic homeowners have 26.4 times the wealth of Hispanic renters.
Opportunities exist nationwide for agents who take the time to build bridges with Hispanic clients. “Trust is important because many Latinos have been taken advantage of because of the language barrier,” Carbajal says, giving the example of a couple who recently reached out for advice after discovering their new mortgage had a variable rate. The real estate agent and lender who spoke only English, had failed to ensure the couple fully understood the terms of their mortgage.
Donna Hency, ABR, AHWD, with Main St. Real Estate in Warrenton, Mo., began working with Hispanic clientele almost by happenstance when a Spanish-speaking family called her with questions about their mortgage preapproval. She helped build trust by finding them a lender who could answer their questions. Because she doesn’t speak Spanish, Hency purchased a Spanish language learning program and downloaded a translation app. “I generally haven’t needed them because clients usually bring a family member to translate,” says Hency, but such an effort alone can help forge trust. She recently recruited a bilingual agent.
It’s common for family members, often children, to serve as a translator, says Rafael Perez, an agent with Axia Real Estate Group in San Diego. “Treat that child with the same respect as the adult buyer,” he says. “Showing a property is a universal language, but if you don’t speak the [buyer’s] language well and there is no family member to assist find someone familiar with the nuances of buying a home to be part of the team, for example, a lender.”
Perez also recommends curating a set of documents in Spanish to educate clients with limited English skills, such as information on buying a home “This type of information can help close the language gap,” Perez says.
Culture connection
“Familiarity with the culture can open doors,” says Perez, adding, “Give first. Volunteer in the community to learn the customs and culture of the group.”
Carbajal spends time in local marketplaces serving Latinos. “Being part of the community is important,” he says. “I can reassure them that I’m a professional who will help them confidently navigate the process.”
A shared value among many Hispanic groups is the importance of family, as evidenced by family involvement in the purchase decision. “It’s a community decision—kids, parents, grandparents all weighing in,” Perez says. Also, many Latino buyers look for property to accommodate multiple generations living in the same household.
NAR research shows that 22% of Hispanic/Latino homebuyers purchased multigenerational homes, compared to 12% of white buyers. The top reason cited was to care for aging parents, according to the 2023 Profile of Home Buyers and Sellers. In such cases, agents should familiarize themselves with zoning restrictions to ensure a multigenerational household is permitted.
Financing know-how
A 2023 NAHREP study found a “noticeable increase” in co-borrowers among Hispanic homebuyers in response to high prices and high interest rates. In some cases, co-borrowers choose to buy and live together, while others offer support, intending to come off the loan at some point.
“There is a bias against families who pool their resources to purchase a home,” says Gary Acosta, NAHREP’s chief executive and co-founder. “Lenders may consider these loans riskier because if a family member who joined the loan to secure financing does not live in the property or moves out, the person is not as vested in that property.”
Carbajal recommends identifying a lender familiar with loans to assist first-time buyers and with the documentation and requirements for non-citizens to counter lending challenges. “So long as you have a tax ID, you can buy a home,” Carbajal says.
Be prepared, but don’t make assumptions
Familiarizing yourself with the local Hispanic culture, identifying other professionals to assist with the transaction, and curating Spanish-language resources to overcome language barriers are helpful steps to prepare yourself to serve the Hispanic market. Perez offers one more important step: Don’t make assumptions.
“Refine your standard new client interview questions to get the information you need upfront to meet people where they are at,” Perez says. “Ask about their language preference and comfort with English. Ask if a translator is needed, if they will bring someone, or if they are comfortable with someone else joining the team to assist.” He continues, “Ask your qualifying questions, but listen carefully for non-traditional responses around things like source of funds.”
Loyalty reward
Agents serving a diverse, multicultural community are typically rewarded with loyalty and referrals. “I got my first Hispanic client by chance; then they referred me to another family,” Hency says. “Since then, I’ve gotten several more referrals.” Hency credits her training from NAR’s At Home With Diversity certification for helping prepare her to work with buyers from diverse backgrounds. “The biggest takeaway for me was to be mindful of differences,” she says. “No one client is the same as another.”
Carbajal estimates that 15% of his residential business is Latino. He occasionally receives referrals from competitors who are unprepared to serve the client but says most of this business comes to him directly, including via client referrals. He maintains loyalty by being a source of trusted contacts.
“I’m their source for a plumber, accountant, everything,” says Carbajal, who vets his contacts carefully, including for customer-service standards. “By being a trusted resource, I earn the confidence of the Latino community when they’re ready to buy or sell.”
“Reliance on referrals for professional services is strong in the Latino community,” Perez says. “Learning about a different culture gives you credibility and shows you’re committed to delivering homeownership for all backgrounds. If you do right by the Latino community, the Latino community will do right by you.”
© 2024 National Association of Realtors® (NAR)
