It has long been known that Latinos are a powerful economic force — and yet recent statistics are startling. If U.S. Latinos were a country, their economic output would rank fifth in the world, above India and the United Kingdom, according to a study from the nonprofit research organization Latino Donor Collaborative. In terms of purchasing power, they spent $1.84 trillion in 2020 — an amount greater than the entire economies of Canada and South Korea.
Zoom in on Latino homebuyers and the figures are equally impressive. According to the 2021 State of Hispanic Homeownership Report from NAHREP (The National Association of Hispanic Real Estate Professionals), Latinos are predicted to account for 70% of homeownership growth over the next 20 years, the only racial or ethnic group that will see an increased homeownership rate.
Sounds like easy money for mortgage loan originators, right? Well, not so fast. That same report warns that the growth is not guaranteed because the mortgage industry needs to create a more conducive environment for first-time buyers, many of whom are Latinos. Other barriers include housing availability (too few homes for sale in the desired price range), affordability and the access to credit for the self-employed.