The Hispanic community continues to drive homeownership growth in the U.S., but a challenging political climate keeps many from making long-term financial commitments, according to the latest HWP Annual report released by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals.
The Hispanic homeownership rate increased from 45.6% in 2015 to 46.2% in 2017 for the third consecutive year, according to the newly published report.
The U.S. Census Bureau and other government entities note that while consistent household wealth data is lacking, the median net worth of Hispanics drastically rose from $13,700 in 2013 to $20,600 in 2016.
HWP aims at tripling Hispanic household wealth in 10 years. To achieve this goal, the homeownership rate, number of Hispanic home businesses with more than $1 million dollars in revenue, and participation in Hispanic investment must increase, the group said.
"With the youngest population and the highest work force participation in America, it is clear that the financial well-being of the Hispanic community is critical to the economic strength of the whole country," Hispanic Wealth Project Chairman Jerry Ascencio said.
The report also showed that progress needs to be made in the area of savings and investments. When it comes to savings and investments, 83% of all Hispanic Millennials have nothing saved for retirement, according to the report.
The report explained that the political climate and immigration uncertainties continue to prevent Hispanics from committing to building out their retirement savings or buying homes. Even those with permanent residency status.
The group's annual report concludes that the current challenging political environment for immigrant populations "has created a strong and largely unexpected headwind," the report said, adding that "uncertain immigration policies are justifiably causing many Hispanics, even those with permanent status, to hold off on making long-term financial commitments, such as retirement savings or purchasing a home. The enduring effects of this are difficult to estimate."