AN AGENT S GUIDE TO WORKING WITH THE LATINO COMMUNITY

Transcription

1 AN AGENT S GUIDE TO WORKING WITH THE LATINO COMMUNITY

2 TABLE OF CONTENTS 1 2 Why is this community important? hispanic population growth projections 3 the latina & her buying power The LATINO millennials The Upscale latino first time homebuyers The EFFECT of ImmigrATION Reform WHAT CAN we do to help the LATINO community?

3 Why is this community important? The U.S. Census data shows that over the past 12 years Hispanics have achieved a gain in homeownership in all but two of those years, despite suffering significant losses during the recent foreclosure crisis. The number of Hispanics who own homes grew from 4.24 million in 2000 to 6.69 million in 2012, a significant increase of 58%. NAHREP (The National Association of Hispanic Real Estate Professionals), in their 2012 State of Homeownership Report, said that in 2012 Hispanics accounted for 51% of the total new homeowners in the U.S. (355,000 of 693,000). The Weldon Cooper Center for Public Service at the University of Virginia recently released that the Hispanic population is projected to grow substantially over the next 30 years. The maps on the following page s infographic show these projections. As you can see in the increase of the population, the Hispanic community will be our future clients. Let s focus on four groups within this community and how we can help them fulfill the American Dream! 1. The Latina & Her Buying Power 2. The Latino Millennials 3. The Upscale Latinos 4. First Time Homebuyers KEEPINGCURRENTMATTERS.COM 1

4 HISPANIC POPULATION PROJECTED GROWTH IN THE UNITED STATES % NATIONWIDE % NATIONWIDE % NATIONWIDE % NATIONWIDE 0% to 9% 10% to 19% 20% to 29% 40% and up 30% to 39% Sources: US Census Bureau & Weldon Cooper Center for Public Service, Demographics & Workforce Group KEEPINGCURRENTMATTERS.COM 2

5 the latina & her buying power U.S. Hispanic women, also known as Latinas, are a key growth engine of the U.S. female population and are expected to become 30 percent of the total female population by 2060 according to the Nielsen report, Latina Power Shift. The report mentioned that Latinas are outpacing Latino males in their education pursuits & career development. For first the time they have exceeded non-hispanic females enrolled in college. While also posting an increase of 5% over the past 10 years in households making $75,000 or more, showing gains regardless of the recession. The personal contribution to household income by Latinas has increased by 24%. Over the past year, 4.1% refinanced their home, 2.1% bought their first home and 1.4% bought a new home (not their first home). Latinas are becoming more educated, tech savvy and connected, allowing them to write their own destinies and challenge the dynamic of Hispanic households. With 86 percent of Latina women at the helm of purchasing decisions in households, the times are changing and economic power is shifting. KEEPINGCURRENTMATTERS.COM 3

6 The Latino Millennials What makes Latino Millennials different than mainstream millennials? Millennials are young (18-29), 65 % of Latino Millennials are first generation U.S. born, and though they prefer English, 40% are bilingual. Latino Millennials embrace Hispanic traditions. They were raised in a culture that had to work very hard to pursue the American Dream and fight stereotypes. As Carlos Davila, Senior Vice President and General Manager of the Hispanic Market Center of Excellence at Nielsen said: They are made in the USA with Hispanic Ingredients. KEEPINGCURRENTMATTERS.COM 4

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8 The Upscale latino Who are Upscale Latinos? 75% are under the age of 45 77% have households with 4 or more people 6% live in the Southwest and Pacific Region 11% higher saturation of white collar workers than overall Hispanics in the workforce ½ million Upscale Hispanic homes have a member in their households that own their own business Los Angeles At the 2013 AHAA conference, a partnerships study with Nielsen: America s New Upscale Segment: Latinos!, reported that there are approximately 1.5 million upscale Hispanic households in the top US Hispanic DMA. Los Angeles - 625K (32%) New York - 400K (28%) Houston - 200K (28%) Miami - 200K (26%) New York Small DMAs have also experienced impressive growth from 2000 to 2013: Oklahoma City, OK +191% Baltimore, MD +178% Raleigh, NC +175% Yakima, WA +166% Houston They are young, urban, connected and living in a bicultural world. Upscale Hispanics will generate 37% of the Hispanic spending power in In 2012, there were 15 million Upscale Hispanics; and that number is projected to double again by Miami KEEPINGCURRENTMATTERS.COM 6

9 first time homebuyers Hispanics are the fastest growing group of first-time homebuyers. Some surveys also show that a major reason Hispanics buy a home is because it represents a symbol of success or achievement. Over a million Hispanic households were formed from 2010 through Of the 693,000 new owner households added to the market in 2012, 51 percent of the buyers were Hispanic. As it was reported by NAHREP (The National Association of Hispanic Real Estate Professionals) in their 2012 State of Homeownership Report, Hispanics are expected to account for 40 percent (5 million) of an estimated 12 to 14 million net new households within the next 10 years. KEEPINGCURRENTMATTERS.COM 7

10 The EFFECT of ImmigrATION Reform These figures are results from the Bipartisan Policy Center s (BPC) study, Immigration Reform: Implications for Growth, Budgets, and Housing Learn more about immigration reform and view the full report at KEEPINGCURRENTMATTERS.COM 8

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12 what CAN we do to help the latino community? 1. Listen Very Carefully Just because they are Latinos doesn t mean that they like the same things. They come from different countries, and even though many speak Spanish, there are a lot of terms that are different depending on the country of origin. For the first-time buyers in this country, some of them have the idea of owning a home in their country but the regulations and procedures can be different in the United States. Some of them will need you to explain the process from A to Z. 2. Share Your Contacts Some of them will not know a loan officer, an attorney (if your state requires one) or a title company. Find the companies that will help your Hispanic clients in their own language if necessary. 3. Have Information Available For Them Freddie Mac introduced a Spanish-language version of Credit Smart; a free tutorial that provides families with information on building savings, personal credit and becoming successful homeowners. They also have a variety of resources in Spanish as PDF files that you can print for your clients or the link to them. 4. Be Patient Take the time to help them and you will have a client and referrals for life! KEEPINGCURRENTMATTERS.COM 10