The Shifting Demographics of Homeownership
R.A. Schuetz shares news of a new study from the Urban Institute that anticipates the growth of homeownership rates among Hispanic Americans. The report presents the trend as a reflection of the lingering impacts of the Great Recession.
"Between 2020 and 2040, there will be 6.9 million net new homeowner households, a 9 percent increase," writes Laurie Goodman to share the report's findings on the Urban Institute website. "Hispanic homeowners will grow by 4.8 million, homeowners of other races (mostly Asian homeowners) will grow by 2.7 million, and Black homeowners will grow by 1.2 million. The total number of white homeowners will decline by 1.8 million."
New homeownership among Black Americans will not keep pace with the increasing number of Black renters, however. "If current policies stay the same, the Black homeownership rate will fall well below the rate of previous generations at the same age and result in an unprecedented number of Black renters over 65; we project elderly Black renters will more than double from 1.3 million in 2020 to 2.6 million in 2040," writes Goodman.
Schuetz cites the experience of a real estate in Houston as evidence that more Hispanic residents are buying houses.
The report suggests that the shifting geography and demographics of homeownership will require new approaches to mortgage qualification. Two challenges in potential hinder BIPOC homeowners, according to Schuetz: "Workers who are self-employed or participate in the gig economy have a difficult time proving their income to the satisfaction of lenders, and it is difficult to count multigenerational households or roommates if they are not all on the mortgage…"