Gap in home values for Latino and white-owned houses narrows
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The average value of houses owned by U.S. Latinos is the closest it has ever been to that of homes owned by white non-Hispanics, per a new report.
Why it matters: Homeownership is one of the biggest contributors to wealth-building for Latinos, yet homes owned by Latinos and other people of color have traditionally had lower values.
- The new data from Zillow, which comes as Latino homeownership has been rising, also points to growing opportunities for that wealth to be passed down through generations.
By the numbers: Hispanic-owned homes are currently valued at a national average of $328,283, compared to $372,835 for the homes owned by white non-Hispanics, the Zillow data shows.
- That's a gap of 12%, down from 18% a decade ago and the lowest gap since the real estate company started keeping track.
- At a local level, there have also been gains, with the gap being reduced in more than two-thirds of the 100 largest metro areas.
- In cities like Denver; Atlanta; Charlotte, North Carolina; and Miami, there's an even smaller gap between values of Hispanic- and white-owned homes.
What they're saying: "It's a big milestone … It shows Hispanic homeownership has almost completely rebounded" after being hit during the 2008 crisis and the height of the COVID pandemic, says Nora Aguirre, president of the National Association of Hispanic Real Estate Professionals.
- Aguirre says that since the Latino population also has the youngest median age of any racial/ethnic group in the U.S. (30.7 years), if they buy homes younger — and the value of those homes is accruing — they can build equity and assets for longer.
Between the lines: Among the reasons for the gap narrowing are credit-building programs from banks and community institutions that help more Latinos access mortgages, says Skylar Olsen, chief economist at Zillow.
- NGOs have also been increasing initiatives to provide financial counseling, to avoid predatory lending, or to advocate for equitable housing access.
- Olsen points out Latinos have also benefited from measures to increase housing supply, such as states like California allowing the building of additional dwelling units — cottages or secondary living spaces in the same land that can be rented out or used to give people in the multigenerational homes common in Latino communities more space.
Zoom out: Housing affordability is among the main concerns for Latino voters ahead of the Nov. 5 elections.
- The Harris campaign detailed last week in an interview with Noticias Telemundo plans to help Latinos access bank lending, which would include mortgages.
- Harris has also promised to offer downpayment assistance to first-time home buyers and tax incentives for construction companies to increase housing supply.
- Former President Trump has claimed immigration is a contributor to high housing prices — though researchers do not agree — and has suggested housing could become more readily available through his promise of mass deportations.
- The Trump campaign has broadly also said that if elected it will support first-time buyers, though without offering details, and that its proposals to tackle inflation would help in cutting down mortgage rates.
The bottom line: "As we as a nation become more diverse, the gaps in the housing market should narrow," Olsen says.
- While "we are slowly and steadily improving, we still have inherited challenges in the housing market and a long way to go," she adds
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