From the Orange County [CA] Register:
By MARGOT ROOSEVELT | [email protected] | Orange County Register
PUBLISHED: December 22, 2017 at 5:45 am | UPDATED: December 29, 2017 at 12:23 pm
… Real estate professionals call them “Hispennials.” The label, a mash-up of Hispanics and millennials, defines a group of consumers, aged 20 to 36, which the housing industry is eagerly courting.
“If you look at the Latino population, their demographic is younger and they are just starting to buy homes,” said Rick Arvielo, CEO of Tustin-based New American Funding, a fast-growing lender with 35 offices in Southern California.
“Millennials and Hispennials are the biggest waves in home buying.”
Today, just 45 percent of Latinos in the U.S. own homes, 20 percentage points lower than the home ownership rate of non-Hispanic whites.
But that’s changing quickly. Last year, Latinos accounted for 75 percent of the net growth in overall home ownership. Their numbers grew by 209,000 to a total of 7.3 million, according to the National Association of Hispanic Real Estate Professionals.
“The Hispanic market has outgrown the ‘niche’ segment designation,” the San Diego-based trade group asserted in its annual report.
And a study by the Housing Policy Finance Center of the Urban Institute, a Washington, D.C.-based think tank, makes this prediction: By 2030, Latino families will comprise 56 percent of all new homeowners.
For Hispennials, who generally have lower credit scores than non-Hispanic whites, and less help from prosperous relatives for down payments, buying a home is far from easy. And the Urban Institute warns that for the overall housing market to remain prosperous, Latinos must gain more access to credit.
“The face of the nation is changing, and our housing market will inevitably change with it,” they wrote.
“It will either do so by contracting, because it cannot accommodate a larger and larger percentage of our citizens, or it will do so by becoming more inclusive because we have found ways to bring a more diverse profile of borrower into the system.”
Big banks are stepping up.
In 2015, Wells Fargo, the nation’s largest mortgage originator, pledged to lend $125 billion to Latinos over 10 years and grow the number of Hispanics on its sales teams.
How’d that work out anyway?
But who can remember back that far?
Remembering is racist.