Fannie Mae’s National Housing Survey examined the attitudes among the Hispanic population toward homeownership, getting a mortgage and the expectations for future homeownership, in order to have a better understanding of the potential impact of this fast-growing population on future homeownership demand.
In their report “Hispanics: A Key Driver of Future Homeownership Demand” they show that “Hispanic expectations for buying in the next three years are an encouraging sign for the ongoing housing market recovery.”
Over the last two years, Hispanics have become more likely than the general population to say that lifestyle benefits are the best reason to buy a house. Hispanics are more likely to prefer owning, particularly for lifestyle reasons:
65% cite having less stress
82% cite having flexibility in future decisions
92% cite having a good place for your family or to raise your children
Hispanics are likely to be drawn to the financial benefits of homeownership:
90% believe that it is the best investment plan
84% believe it will help with saving for retirement
84% want to build wealth
Among Hispanics who earn less than $50K per year, 75% have a perceived difficulty of obtaining a mortgage, that number drops to 50% with those earning over $50K. The study also looked at age as a perceived factor in obtaining a mortgage:
68% of those aged 18-34
62% of those aged 35-44
71% of those aged 45+
Hispanic owners (27%) and renters (53%) both are more likely than their general population counterparts to say they plan to buy a home in the next three years
“Despite greater concern about their ability to get a mortgage, Hispanics are more likely to expect to buy a home in the next three years.” Include the Hispanic market in your business plan, they are ready to buy!