Latino-Owned Homes are Closing the Value Gap
Gap in home values for Latino and white-owned houses narrows
According to a new Zillow report, the average value of homes owned by US Latinos is now closer than ever to homes owned by white, non-Hispanic households. Traditionally, homeownership has been one of the biggest drivers of wealth-building for Latinos. For years, homes owned by Latinos and other people of color have tended to be valued lower on average. New data from Zillow shows that, alongside a rise in Latino homeownership, these values are also increasing which opens up opportunities for wealth to be passed down through generations.
More data shows that today Hispanic-owned homes carry a national average value of $328,283 compared to $372,835 for white, non-Hispanic-owned homes. This 12% gap marks a significant improvement from the 18% gap of a decade ago, making it the smallest difference on record.
At the local level progress is also clear with values growing closer together in more than two-thirds of the country’s 100 largest metro areas. Cities like Denver, Atlanta, Charlotte, and Miami show an even smaller gap between the value of Latino- and white-owned homes.
Nora Aguirre, President of the National Association of Hispanic Real Estate Professionals (NAHREP), called this a “milestone,” pointing out that Latino homeownership has almost fully rebounded after setbacks from the 2008 housing crisis and the COVID-19 pandemic. She noted that the Latino population also has the youngest median age among all racial and ethnic groups in the U.S. which means that buying homes at a younger age allows them to build equity over a longer period.
Several factors are behind this narrowing gap.
Banks and community organizations are introducing more credit-building programs which are making mortgages accessible to a larger number of Latinos. Additionally, nonprofits are increasing their financial counseling efforts, helping people avoid predatory loans and pushing for fair housing access. Latinos are benefiting from new housing policies in states like California, where building additional units on existing land is now permitted. These “secondary” spaces provide rental income or offer more living space, especially helpful in multigenerational homes common in Latino communities.
Affordable housing remains a key concern for Latino voters as the November 5 elections approach.
The Harris campaign recently shared with Noticias Telemundo its plans to support Latinos by increasing access to bank loans, including mortgage assistance and down payment support for first-time homebuyers along with tax incentives for construction companies to build more homes. Former President Trump stated that he aims to bring down mortgage rates and tackle inflation by supporting first-time homebuyers.