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As Hispanic Heritage Month concludes, I would like to take a moment to revisit a key theme I highlighted during my first year at Ginnie Mae: supporting Latino homeownership benefits not only the Latino community but all Americans as well. Housing plays a crucial and outsized role in our national economy, and addressing the housing needs of the Latino population fosters stability and growth across this vital sector. When we build an inclusive housing market,​ we contribute to job creation, enhance consumer spending, and strengthen local tax bases—outcomes that benefit all Americans.​

The demographic trends that informed our analysis in 2022 remain relevant today and, in some in​stances, have accelerated.¹  According to the U.S. Census Bureau, between 2022 and 2023, Latinos accounted for 71% of the growth of the U.S. population and 73% of the population growth in metropolitan areas. The Hispanic population continues to grow at a faster rate than the non-Hispanic population, primarily due to higher birth rates within the Latino community. In contrast, growth​ in the non-Hispanic population has slowed, largely due to lower birth rates among non-Hispanic Whites. 

Beyond population growth, Latinos are also the fastest-growing contributors to the U.S. economy. Using data from the U.S. Census Bureau, the Bureau of Economic Analysis and the Bureau of Labor Statistics, the Latino Donor Collaborative (LDC) reports that U.S. Latinos generated​ $3.2 trillion in gross domestic product (GDP) in 2021. By 2022, this figure had reached a record $3.6 trillion, positioning U.S. Latinos as an economic force that, if considered an independent economy, would rank fifth in the world.

According to a National Association of Realtors (NAR) analysis, one can project that each home sale generates roughly two new jobs. During the 18-month period between January 2021 and June 2022, approximately 747,448 mortgage loans were originated for Hispanic borrowers, including loans for single-family home purchases and construction. Using NAR’s methodology, these home sales contributed to the creation of more than 1.5 mil​lion jobs across the U.S., underscoring the vital role Latino homeownership plays in driving employment and economic opportunity for all Americans.

The momentum​ within the Latino homeownership market has continued into 2023, with Latinos adding a net gain of 377,000 homeowner households, the largest single-year increase since 2005. The Urban Institute projects that all future net household growth will come from nonwhite households, with the majority of new homeowners being Hispanic or Latino. In fact, between 2020 and 2040, an estimated 8.6 million new Hispanic households will form, and approximately 4.8 million of these households are expected to achieve homeownership. 

Addressing the Homeownership Gap

​​However, not all Latino households will be able to transition to homeownership. Of the projected 8.6 million new Hispanic households, 3.8 million are expected to remain renters. While some of these renters are older Americans choosing to rent, a significant portion comprises younger households that may face barriers to homeownership, presenting both a challenge and an opportunity for the housing industry and policymakers.²

​According to the Urban Institute, financial education, down payment assistance, and reforms in credit evaluation processes could play a pivotal role in increasing homeownership rates for all races and would be particularly impactful at helping bridge the Latino homeownership gap. By 2040, the homeownership gap between non-Hispanic White and Latino households is expected to narrow from 24% in 2020 to 20%. This shift, however, is not solely due to increased Latino homeownership but also a projected decline in the non-Hispanic White population.

The growth of Latino households is a demographic given at this point. B​​ut whether the housing industry and policymakers can meet this growing demand with access to credit that helps reduce the racial wealth gap and grow the economy is not. This demographic reality presents both a challenge and an opportunity. At Ginnie Mae, we are committed to meeting the moment, understanding that a more inclusive housing market not only strengthens Latino communities but also drives economic security and prosperity for everyone.