Hispanic Americans Are Chipping Away at a Persisting Homeownership Gap

The Hispanic homeownership rate climbed to 51.1% in 2020, its highest level ever recorded, but lingering roadblocks still hinder Hispanic Americans on the road to wealth building. The homeownership gap between white and Hispanic households is beginning to close, but Hispanic Americans still lag behind other demographics in non-housing investments, causing a persisting wealth gap that goes beyond the real estate market.

The median income of Hispanic households was $56,113 in 2019, according to Insider, a rate nearly 30% lower than the $76,057 median income of white households. A smaller income leaves less room for non-essential expenses that may contribute to wealth building, particularly as rising inflation rates push prices for consumer goods to new highs.

Many obstacles prevent Hispanic Americans from achieving wealth equality. While the group is leading the nation in homeownership growth, it hasn't made significant gains in other areas that are key to generating long-term wealth. Hispanics will need to participate in different investment avenues to ensure they can pass down their assets from one generation to the next.

"Wealth is the foundation of economic security and upward mobility for all Americans," Asante-Muhammad said. "The racial/ethnic wealth divide faced by so many Hispanics does not only reveal economic vulnerability for our country's largest community of color but reveals a weakness in the future of the American middle class."

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