By Ofelia Mendoza Torres, Real Estate Agent
For the sixth year in a row, Latinos are driving homeownership locally. According to the National Association of Hispanic Real Estate Professionals, the Phoenix-Mesa-Scottsdale area ranks in the top 20 markets with the most mortgage-ready Hispanic millennials.
Arizona is noticing a large boom in the North Phoenix area. According to a DATOS 2021 report, the number of homeowners has grown over the past 21 years and, as of now, more than 249,000 are Hispanic-owned housing units. Phoenix homeownership is 18% Hispanic-owned, which is more than 10.4% of all states in the U.S. combined.
There are no signs of stopping. This boom goes way beyond stats and numbers. Why are we continuing to see this surge and what can we expect in the coming years? And what does this mean for the Latino community?
A Strong Culture
According to multiple studies, traditionally, the Latino community values living with multiple generations of family members and feel that it enhances their bond. Multigenerational homes can accommodate aging parents, grown children and grandchildren. This strong familial bond is not the only benefit of living in a multigenerational home. According to a 2021 State of Hispanic Wealth Report, 41% of Hispanics who live in multigenerational homes reported that at least three incomes support their household, and by doing so, household expenses, mortgage or rent becomes more affordable.
Even in a pandemic that resulted in job losses, economic uncertainty and a more competitive housing market, more Latino buyers in North Phoenix successfully purchased homes in the last two years than ever before. The COVID-19 pandemic enhanced the desire for Latino families to have the security of a home, a place to live, work and facilitate remote learning.
Homeownership also continues to be a factor in helping Hispanic families build a solid financial foundation and build wealth. The benefits of owning a home as an investment or to be passed down affect North Phoenix Latino families for generations to come.
The growth of Latino populations in North Phoenix remains significant. According to the Phoenix DMA, the Hispanic population demographic ranks number 8 with 1.8 million residents, with Hispanics accounting for over 45% of the population growth.
A study by the Urban Institute forecasts that Hispanics will emerge as the largest group of buyers in the coming years. Unfortunately, Hispanic households often face a higher percentage of structural barriers to homeownership, including inequitable access to credit, down payments, and opportunities to build wealth. Still, despite this, the Urban Institute predicts that by 2040, 70 percent of new U.S. homeowners will be Hispanic.
Ofelia Mendoza Torres is a real estate agent with RE/MAX Fine Properties. She specializes in residential real estate, is bilingual in Spanish and English, and is a member of the National Hispanic Association of Realtor Professionals (NAHREP).