A new report from Redfin has found that Hispanic homeowners in the U.S. are more likely than people of other races or ethnicities to receive financial help making their housing payments. That familial support helps explain why the Hispanic homeownership rate has steadily risen over the last six years, with 50.1% of Hispanic or Latino Americans owning their home in 2020, up from 45.4% in 2014. The Hispanic homeownership rate has increased faster than the rate for white or Black Americans over the same time period.
According to Redfin’s findings of more than 1,500 respondents: 385 identified as Hispanic, 238 identified as Black, and 499 identified as white.
Fifty-two percent of Hispanic homeowners have lived with family or friends without paying rent to save for housing costs, versus 39% of Black respondents, and 38% of white respondents. Additionally, Hispanic respondents are more likely than respondents of other races to have received direct help making rent or mortgage payments from parents and other family members. Meanwhile, 47% of Hispanic homeowners have adult relatives living in their home, compared with 39% of Black homeowners, and 27% of white homeowners.
"Hispanic people in the U.S., especially those who are undocumented, tend to have less access to credit and higher debt compared to other racial or ethnic groups, making them more dependent on support from family to buy a home," said Sebastian Sandoval-Olascoaga, an Economist at Redfin. "With those limitations, support from family and social networks—such as living with family or friends without paying rent—allows Hispanic people to save money for a down payment or monthly mortgage costs. That ability to rely on family is one of multiple reasons why the Hispanic homeownership rate is steadily rising."
Redfin found that Hispanic homeowners were also more likely than people of other races to have made financial sacrifices to afford their first home. The analysis found that Hispanic homeowners worked longer hours, 39% took an extra job and 38% drove an older car in order to save for housing costs. Just 10% of Hispanic homeowners reported making no sacrifices to buy their first home, versus 23% of white homeowners.
"For many Hispanic Americans, making social or personal sacrifices is a necessity if they want to buy a home," said Sandoval-Olascoaga. "That's especially true this year, as Hispanic people were more likely than people of other races to lose their jobs due to the pandemic. Plus, undocumented immigrants are unable to access financial help from the government and may have to rely on family, adding to the need for Hispanic families to make economic sacrifices."