Latinos Lead the Way in Wealth Creation – RisMedia.com

In order to understand where future growth and wealth creation will come from in America, one needs to look at how Latinos trend in homeownership, small business development, and savings and investment.

According to the National Association of Hispanic Real Estate Professionals’ (NAHREP) 2022 State of Hispanic Wealth Report, at $36,050, the median household wealth held by Latinos increased by 63.6% between 2016 and 2019, the highest wealth increase of all demographics. The growth in Latino household wealth resulted in a narrowing of the non-Hispanic White/Latino wealth gap.

These are some indices of wealth creation for Latinos in America:

  1. Latino wealth is increasing at more than three times the rate of the overall population. Latino median household wealth increased by 138% between 2013 and 2019 as compared to 36% for the overall population.
  2. The wealth gap remains large and poses risks to long-term U.S. prosperity. Despite Latino household wealth doubling since 2014, a sizable Latino/non-Hispanic White wealth gap remains ($153,050). Latinos have a median net worth of $36,050 compared to $189,100 for non-Hispanic White households. The future of U.S. economic growth will rely heavily on Latinos, who are aging into their prime wealth-building years.
  3. Homeownership is pivotal to wealth creation. The wealth gap narrows considerably when controlling for homeownership status, and owning real estate has become more lucrative than ever. In June 2022, average home prices grew by 18.3%, marking the 125th consecutive month of YoY increases. At the end of 2021, the average annual equity gain was $55,300, more than double the annual gain in 2020.
  4. The homeownership gap remains sizable, largely driven by age. The Latino homeownership rate is 25.7 percentage points lower than their non-Hispanic White counterparts. However, age is a key driver of the homeownership gap. When comparing adults under the age of 30, the gap nearly closes, narrowing by 18.8 percentage points.
  5. Latinos drive small business growth. The number of Latino-owned businesses is growing at a faster rate than other demographics, but they continue to face challenges securing the capital they need to scale. According to the Stanford Latino Entrepreneurship Initiative (SLEI), Latino business owners are 60% less likely to receive approval for a $100,000 loan when compared to their non-Hispanic White counterparts. Additionally, less than 2% of venture capital and private equity investor funding goes to Latino-owned businesses.
  6. NAHREP serves as a case study for how networks, narrowing knowledge gaps and the pursuit of the American Dream can offer a roadmap for closing the wealth gap. NAHREP members over-index in high-net worth individuals, scaled business ownership, homeownership and asset diversification.

Despite economic turbulence, Latinos continue to drive GDP growth, labor participation and consumption at higher rates than other segments of society.

To see the full report, visit https://hispanicwealthproject.org/annual-report. For more information, visit https://nahrep.org/.</…….

Source: https://news.google.com/__i/rss/rd/articles/CBMiRWh0dHBzOi8vd3d3LnJpc21lZGlhLmNvbS8yMDIyLzExLzIyL2xhdGlub3MtbGVhZC13YXktd2VhbHRoLWNyZWF0aW9uL9IBAA?oc=5