The rate of homeownership is flirting with 50-year lows, with the most recent statistics indicating less than two-thirds of Americans – 62.9 percent – own residential real estate. That’s down from over 69 percent in 2004.
But among Latin Americans, the homeownership rate continues to trend in a positive direction, thanks in large measure to their financial stability resulting from hard work and achievements made in the business world.
“Hispanic homeownership has improved for two years in a row.”
Last year, approximately 46 percent of Latin Americans were homeowners, according to data crunched by the National Association of Hispanic Real Estate Professionals. It’s the second straight year in which the homeownership rate among Hispanics has climbed, up from 45.4 percent in 2014 and 45.6 percent in 2015.
“The significance of a strong desire for homeownership cannot be overstated,” the report said, as quoted by RISMedia. “Where there is a will, there is generally a way.”
The U.S. populace is increasingly comprised of individuals with Latin American heritage. Indeed, according to the Pew Research Center, Hispanics totaled 58 million in 2016, representing half of the U.S.’ growth in numbers since 2000. The Hispanic population in the U.S. was 50.8 million in 2010 and 35.7 million a decade earlier.
Making waves in the business world
Not only are more Latinos living in the United States, but they’re also doing well financially, due in part to their success in business. Latin Americans owned 3.3 million companies within the country’s borders in 2012, according to the Minority Business Development Agency, an arm of the Commerce Department. In 2007, the total was 2.3 million, a growth rate of more than 46.3 percent.
Small-business ownership is particularly vibrant in the Hispanic community. As cited by CNBC from Stanford University’s Latino Entrepreneurship Initiative, more than 85 percent of small-business growth between 2007 and 2012 is due to more Latinos entering the entrepreneur arena.
Furthermore, many business owners of Hispanic descent are fairly young, suggesting that if their entrepreneurial success continues, can provide additional support to the nation’s economy. In the five-year span between 2007 and 2012, over 55 percent of Hispanic-owned companies were 35 to 54 years of age, according to the Commerce Department’s calculations. This age demographic accounted for 44.7 percent among business owners, not of Hispanic origin.
Females account for a larger share of Hispanic-owned businesses
Much of the growth can be attributed to women. Indeed, as the Commerce Department highlighted, female Hispanic-owned businesses jumped 87 percent to 1.5 million firms in 2012, up from 800,000 U.S.-based companies owned by Hispanic women in 2007.
As for where Latin Americans originate from, in recent years, it’s largely been just over the border. Citizens of Mexican ethnicity represented more than 63 percent of the U.S.’ Hispanic representation in 2015, according to the Pew Research Center, the equivalent of 36 million. In a distant second were those with Puerto Rican roots at 5.3 million and Salvadorans at 2.1 million.
The Hispanic business owner community has helped to increase economic opportunity and prosperity for the nation. More aspiring entrepreneurs can realize their goals through the Community Advantage Loan Program. Growth Capital works with business owners to make this program possible so start-ups can get the credit they need to become established. Here’s additional information on how the Community Advantage Loan Program works.