The Hispanic homeownership rate fell by a half percentage point to 49% in 2024, according to a report from the National Association of Hispanic Real Estate Professionals (NAHREP). Though it marks the first time in 10 years that the rate declined, NAHREP notes that it was not unexpected given the affordability challenges facing many prospective homebuyers.
NAHREP is a nonprofit organization whose mission is to advance sustainable Hispanic homeownership. Based in San Diego, the group is celebrating its 25th anniversary this week. On Monday, it released its annual State of Hispanic Homeownership Report as part of an industry conference in Washington, D.C.
The report attributes the decline in Hispanic homeownership rate to a combination of factors, including rising home prices in 2024 and high interest rates. In 2024, the 30-year fixed-rate mortgage hovered in a range of 6.08% to 7.22%.
However, the report observes that the Hispanic homeownership rate drop was also due to the rate of Hispanic household formation surpassing homeownership growth. About 676,000 new Hispanic households were formed in 2024, which was the most of any racial or ethnic group in the U.S., according to NAHREP.
And while the homeownership rate declined, NAHREP data shows that 9.8 million Hispanic households owned homes in 2024, a new high-water mark.
The report includes statements from industry professionals who offer their perspectives on uncertainty among prospective homebuyers. Jorge Montoya, a mortgage originator based in Reno, Nev., said he saw many potential buyers get apprehensive after seeing news reports about market conditions or the political climate.
“People get excited, they get approved, then they see a headline and then they freeze,” Montoya said. “It’s taking a lot more conversations to make people feel confident in their decision to buy.”
But NAHREP sees the relative youth of the Hispanic community as an advantage for future homeownership growth, noting in the report that the Hispanic population in the U.S. is on average more than eight years younger than non-Hispanics.
“With a median age of 31, Latinos are poised to drive homebuyer demand for decades,” the report states.
