Millions of Latinos Fall Short of the Dream of Home Ownership
(Washington D.C.) – According to new research by the nonprofit Demand Institute, 2.5 million Latinos will fail to reach their goal of owning a home over the next 5 years. The Institute’s research shows that just 1.5 million Hispanics are prepared financially to be homeowners – with 31 percent of those surveyed in an accompanying poll saying the lack of savings was the main barrier. Low income and a lack of access to Credit are also significant impediments. Furthermore, a report by the National Association of Hispanic Real Estate Professionals (NAHREP), showed that Hispanic homeownership rate has dropped to its lowest level since 1999, even as 320,000 new Hispanic households were formed during the year.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“Homeownership signifies stability, success, and most importantly, for many it symbolizes the American Dream. Our community is facing financial challenges that are largely due to a struggling economy. Despite the promises of an improved economy, greater opportunity, and a better chance to achieve the American Dream, Latino families are still lagging behind. Saving for a down payment and getting approved for a mortgage remain huge challenges for millions.
It’s time for a new approach – not a repeat of the failed policies of the past, which used government mandates and taxpayer dollars to extend loans that borrowers would never be able to repay. The understandable zeal to expand homeownership should not result in the repeat of the home mortgage crisis Americans endured in 2007-2009. The only durable way to bridge the gap and provide opportunities for Latinos to reach their American Dream, is tackling our tumbling economy with a concrete path of growth. The Obama administration needs to work in tandem with Congress to reduce government mandates and remove unnecessary Regulation s that hinder private business development and focus on policies to spur job creation with better Wages . We all deserve a shot at the American Dream, but government needs to loosen the ropes on this country’s economic drivers.”