Hispanic Homeownership: The Growing Scope Of This Niche Market
The number of Hispanic homeowners is increasing, proving the niche audience to be “resilient,” as Housing Wire described.
A 2018 Fannie Mae survey reported, “88% of Hispanics believe owning a home is the best housing investment plan.” As the Hispanic population and the average income for this demographic grows, more Hispanic consumers are purchasing homes.
The Increasing Growth Of Hispanic Homeownership Rates
The Hispanic audience is responsible for 62.7% of the nation’s homeownership growth over the past decade, according to the 2018 State of Hispanic Homeownership Report from the National Association of Hispanic Real Estate Professionals (NAHREP).
The homeownership count within this audience grew 24% from 6.3 million U.S. homeowners ten years ago to 7.8 million now.
Hispanic Audience Trends And Behaviors Point Toward Homeownership
The Hispanic demographic is gaining traction in numerous categories. For starters, Hispanics are the largest minority in the U.S. Half of the U.S. total population growth over the past 20 years was driven by the growth in the Hispanic population. The Hispanic population is now 58.9 million, accounting for 18.1% of the U.S. population.
And, in 2017, the median household income for Hispanics increased 3.7% to $50,486 from $48,618, which was the largest increase in demographic income. A rise in income is part of what has enabled more Hispanic individuals to purchase residential properties.
In addition to income growth, at 66.3%, the Hispanic demographic also has the highest labor force participation rate compared to any other demographic. Their active presence in the labor force may be partly due to their young median age of 28.7 years old, nearly 15 years younger than the median for non-Hispanic Whites. Almost 30% of the U.S. Hispanic population is Millennials, putting Hispanics in their “prime home buying years,” according to the NAHREP.
As Hispanics invest in homes, the average number of occupants in their households is 3.7, which is higher than the overall U.S. average of 3.0. With 3.7 occupants, Hispanic households often include multiple generations. According to a Nielsen report, 73% of U.S. Hispanics agree “it’s important to them that their children continue their family’s cultural traditions, and the same percentage agree that their cultural/ethnic heritage is an important part of who they are.” Many Hispanics may experience heavy influence from living with elders. Combining Hispanic desire to own homes, their propensity to follow cultural traditions and their recent economic gain, it makes sense so many of these consumers are interested in buying homes and owning their own spaces.
Hispanic consumers are also prominent audiences for the refinance market. Read more about Hispanic refinance consumer behaviors in the Q4 2018 Mortgage Consumer Profile Report from Best Rate Referrals.
Upward Trend And Predictions For Hispanic Homeowners
Last year, the Hispanic homeownership rate climbed to 47.1%. By the year 2030, according to predictions made by the Urban Institute, the Hispanic audience will likely account for 56% of all new homeowners. For mortgage marketers, strategies designed to target Hispanic consumers can result in long-term business growth.
3 Tips To Mold Your Mortgage Marketing For Hispanic Audiences
The following points are important to remember when implementing mortgage marketing strategies tailored to Hispanic audiences.
- Many Hispanic individuals are bilingual. Loan officers interested in appealing to the Hispanic audience should cater to multiple languages. Making websites reflective of a multicultural audience can begin with reproducing articles, reports and other site content in the Spanish language. Marketers can also set their websites to translate to Spanish on request by Spanish-speaking visitors.
- Hispanic individuals may not have been born in the U.S. Mortgage marketers should place emphasis on education and communication. There is a common misconception among non-native born buyers that a 20% down payment is necessary to move forward with a home purchase. Focus on providing clear and helpful answers to misunderstood notions about the home buying process.
- There are generational and cultural gaps in the Hispanic audience. Consider a tailored approach for generational and cultural relativity. Older immigrants, who are considered “traditionalists,” may not speak fluent English. To break through this barrier, loan offers can market to these individuals via traditional and digital Spanish-speaking channels. Marketing that aims to reach these Hispanic individuals should focus on traditional Hispanic values and traditions, including food, family and holidays. Second-generation Hispanics, those born in the U.S. to a Hispanic family, may have adopted many U.S. customs and can be reached with less tailored marketing.
When marketing to the Hispanic audience, it’s important to truly understand consumers as individuals, like Movement Mortgage did with Movement Comunidad. This initiative was built to serve Hispanic communities with Spanish-speaking loan offers, underwriters and processors. The program includes marketing materials printed in Spanish and Movement Mortgage has collaborated with the National Association of Hispanic Real Estate Professionals to develop marketing tools in Spanish. The Hispanic community appears important, valued and understood by the Movement Mortgage brand, as confirmed with the creation of Movement Comunidad.
When marketing mortgages and other home finance products, marketers should consider including messaging tailored to the Hispanic market as this audience is fast growing and eager to buy homes.