US Latino Economic Output Reaches $3.6 trillion
Proof of Latinos growing economic power and influence within the United States.
If Hispanic Americans were an independent country, they would have the fifth largest economy in the world for the second consecutive year.
Despite wide economic disparities in the United States, Latinos' rapid population growth, relative youth, educational attainment and high levels of entrepreneurship have made them an economic powerhouse.
The Hispanic Wealth Project (HWP) and the National Association of Hispanic Real Estate Professionals (NAHREP) have released their 2024 State of Hispanic Wealth Report. This marks ten years of progress in improving Hispanic economic mobility and wealth.
The HWP was established in 2014 and set a bold goal to triple Hispanic household wealth by 2024 and achieved it two years sooner which showcases the economic strength of the Hispanic community.
The new report outlines a goal to cut the wealth gap between Hispanic and non-Hispanic White households by 50% by 2034. To reach this target, the report focuses on real estate, business ownership, financial assets, and asset protection, highlighting the need to preserve wealth across generations.
It also tackles misconceptions about Hispanic economic contributions, using data to challenge myths and promote more investment in Hispanic businesses and communities.
Here are some myths surrounding the Hispanic community.
Myth 1: The wealth gap between Hispanic and non-Hispanic White households is getting bigger.
Fact: While there’s still a significant difference in median net worth, the proportional gap has nearly halved since 2013. Younger Hispanics, especially those under 35, are closing the gap even faster.
Myth 2: Hispanics mainly buy homes in lower-income areas.
Fact: In 2023, 71% of homes bought by Hispanic borrowers were in middle and upper-income neighborhoods. Hispanic home buyers also purchase homes at a younger age and often in high-cost areas.
Myth 3: Few Hispanic-owned businesses employ people.
Fact: Hispanic-owned businesses that do employ people are growing rapidly —increasing by 26.1% since 2017. These businesses are leading in growth in terms of the number of firms, employees, and revenue.
Myth 4: Many Hispanics don’t use banks or financial services.
Fact: Nearly all Hispanic households (96%) have a bank account or use financial services which shows strong financial engagement and opportunities for more services.
Myth 5: Hispanics don’t need estate plans because they don’t have enough wealth.
Fact: Over 1.2 million Hispanic households have a net worth of over $1 million. With $8 trillion in assets, estate planning is crucial for passing on wealth to future generations.