The gap in homeownership rates between Whites and Hispanics in the US is slowly narrowing but very slowly, according to a new analysis from Freddie Mac
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The gap in homeownership rates between Whites and Hispanics in the US is slowly narrowing but very slowly, according to a new analysis from Freddie Mac.
Its June Insight considers the issue and what is causing the rate of ownership among Hispanics to lag. In 2015, the rate was 45%, 26 percentage points below the rate for Whites; in 1995 the gap was 29 percentage points so only slight progress has been made.
Freddie Mac says that almost 90% of the homeownership gap is influenced by age, income and education; these factors are the same for Hispanics as they are for Whites.
The age difference between average White and average Hispanic owners is around 11 years though and Freddie’s analysis shows that this accounts for 7 percentage points in the overall homeownership gap with income and education having a far lower impact (between 1 and 3 points).
The gap is projected to narrow further though, as Freddie Mac’s chief economist Sean Becketti explains:
“These populations are growing and aging at different rates, with the average age of Whites increasing by six years over the next 45 years compared to nearly 10 years for Hispanics. If these Census projections about age distributions are realized, the White/Hispanic homeownership gap is likely to narrow by 20 percent by 2035. In addition, changes in other factors like income and education should further reduce the Hispanic homeownership gap."
Its June Insight considers the issue and what is causing the rate of ownership among Hispanics to lag. In 2015, the rate was 45%, 26 percentage points below the rate for Whites; in 1995 the gap was 29 percentage points so only slight progress has been made.
Freddie Mac says that almost 90% of the homeownership gap is influenced by age, income and education; these factors are the same for Hispanics as they are for Whites.
The age difference between average White and average Hispanic owners is around 11 years though and Freddie’s analysis shows that this accounts for 7 percentage points in the overall homeownership gap with income and education having a far lower impact (between 1 and 3 points).
The gap is projected to narrow further though, as Freddie Mac’s chief economist Sean Becketti explains:
“These populations are growing and aging at different rates, with the average age of Whites increasing by six years over the next 45 years compared to nearly 10 years for Hispanics. If these Census projections about age distributions are realized, the White/Hispanic homeownership gap is likely to narrow by 20 percent by 2035. In addition, changes in other factors like income and education should further reduce the Hispanic homeownership gap."
