The homeownership rate is growing faster among Latinxs than the wider population but there is a big gap to close.
A tripling of the gap between Hispanic and White homeownership rates since the start of the last century means a rise from around 8% at the start of the 20th century to 25.8% four years ago.
Zillow research shows that the gap closed to 24.7% in 2018 so even at the current pace, it will take decades to close completely.
The issue is worsened by income disparity with the typical Latinx household earning 75.7% of the typical white household income and the typical Latinx household wealth just 12.2% of the typical white household wealth.
With Latinx households carrying a far greater share (64.7% vs. 38.1%) of their wealth in their home, those families were harder hit when home values slumped during the Great Recession with Latinx housing wealth slumping from 73.1% of their total wealth in 2007 (compared to 46.5% for white households).
Fewer mortgage denials
On a positive note, Latinxs are facing fewer mortgage denials (15.5% in 2016 for conventional loans, down from 31.3% in 2008) but it is still almost twice the denial rate for whites (8.1%) likely at least partly due to income, debt levels, credit scores and savings.
Also, Latinx home buyers are more likely to mention discrimination as a concern when trying to qualify for a mortgage (54%) compared to 30% of white buyers.
"In the face of a seemingly insurmountable disparity, the good news is that the Latinx homeownership rate is climbing and, as a group, they want to own homes," said Skylar Olsen, Zillow's director of economic research. "If that trend is supported, it will help build up the Latinx middle class and create a strong driver for the whole economy. Regardless of race or ethnicity, a growing diversity of housing options is essential for the wealth building and health of all communities."
More market update: