New Hispanic Wealth Report Confirms Critical Role of Hispanics in U.S. Economic Growth
The Hispanic Wealth Project highlights four consecutive years of homeownership growth, three consecutive years of income growth, and the lowest poverty rate
April 10, 2019 — Washington, DC — The Hispanic Wealth Project (HWP), in collaboration with the National Association of Hispanic Real Estate Professionals (NAHREP), today released the annual 2019 State of Hispanic Wealth Report, confirming trends that underscore the critical role of Hispanics in the economic growth of the United States.
The report found that Latinos have experienced four consecutive years of homeownership growth, three straight years of income growth, and the lowest poverty rate since estimates were first published by the U.S. Census Bureau in 1972. The report also breaks down the key drivers behind the $150,400 wealth gap between Hispanic and non-Hispanic white households and provides context on how homeownership, entrepreneurship, savings, and investments can contribute to closing the wealth divide.
Among the report’s highlights, Hispanics are driving homeownership growth and entrepreneurship at the same time that median household income has risen for a third consecutive year. The data also shows, however, that Latinos are falling behind when it comes to scaling their businesses and investing in financial assets such as retirement accounts compared to all other demographic groups.
The Hispanic Wealth Project was founded in 2014 with a goal of tripling median household asset wealth among Hispanic Americans to $41,100 by 2024. As of the most recent data, Latinos have a median household wealth of $20,600, only half that of the goal. The Federal Reserve’s Survey of Consumer Finances will publish the next set of data in the fall of 2020.
“By the year 2060, nearly one in three people in the U.S. will identify as Latino, so the future of the U.S. economy will be intrinsically tied to the economic success of the Latino population,” said Gerardo “Jerry” Ascencio, Chairman of the Hispanic Wealth Project. “As Baby Boomers continue to age out of the American workforce, Latinos will fuel the necessary growth needed to sustain the U.S. economy.”
The report highlights several trends that could explain the wealth gap, including the relative youthfulness of the Latino population, occupational factors, and disparities in the value of assets and overall asset diversification. Despite these factors, Hispanics continue to drive positive economic trends.
Key highlights from the State of Hispanic Wealth report:
- Hispanics are driving homeownership growth in America: The Hispanic homeownership rate increased to 47.1 percent in 2018 as 362,000 Latinos became new homeowners.
- Median household income rose for the third consecutive year: Between 2016 and 2017, Hispanics increased their real median income by 3.7 percent, the highest of any demographic.
- Latinos are driving entrepreneurship growth but fall behind in scaling their businesses: Latino entrepreneurs are outpacing the general population in small business formation. However, 96% of Latino-owned businesses are one-person firms.
- Hispanics own retirement accounts at lower rates than all demographics but are showing signs of improvement: Hispanic retirement account ownership rate increased to 29.7 percent, while the value of retirement accounts increased by roughly 40.4 percent between 2013 and 2016.
To download a copy of the report, click here.
About the Hispanic Wealth Project:
The Hispanic Wealth Project, a nonprofit 501(c) 3 organization, is committed to empowering Latinos to fully participate and prosper in the U.S. economy through education, small business development and sustainable homeownership. For more information, visit www.HispanicWealthProject.org.
The National Association of Hispanic Real Estate Professionals, a nonprofit 501(c)6 trade association, is dedicated to advancing sustainable homeownership among Latinos by educating and empowering the real estate professionals who serve them. NAHREP is the premier trade organization for Hispanics and has more than 30,000 members in 48 states and over 70 chapters.