The Hispanic population is growing year by year in the United States, and also the number of Hispanic homebuyers.

Some predict that by 2030, Hispanics will have a 56 percent share of all new homebuyers.

This may or may not be true, but what is evident is the growing number of Hispanic homebuyers in the past, and this population is growing.

Now, how do you market effectively to the Hispanic real estate market?

You will find the answer in today’s article, where I first give you some more reasons why you might want to consider marketing to Hispanics.

I then analyse the real estate market situation and the media consumption of Hispanics, the house buying and demand situation of Hispanics, and then translate all of that in a marketing strategy that you could use and test for your real estate business.

Why Consider Marketing to Hispanics?

A good first step is to start looking at the demographic trends happening in the U.S. in this regard.

One of the major factors in the population growth in the U.S. were Hispanics in the past decade.

The growth is still there, but as strong as before.

For instance, between 2010 to 2019, the U.S. population increased by 18.9 million.

The Hispanic share of this growth was 52% (source).

The total number of Hispanics was 60.6 million in 2019 (source).

This represents 18% of the U.S. population. In 2010, this number was still at 16% with 50.7 million.

The reason for the slower growth now is that the number of births dropped (source), and there is less immigration (from Mexico, (source).

As you might know already, an increase in population usually means an increased demand in housing at some point.

This is one of the factors that influence macroeconomics, and thus, the demand in a real estate market.

Due to this growth, the homeownership of the Hispanic population has increased.

According to the State of Hispanic Homeownership Report, 32.4% of U.S. household formation comes from the Hispanic population (source).

I am always a bit wary of future prognostics, but some believe that the Hispanic homeowners’ buying power will be rising in the future (source).

It states that the income of Hispanic households grew from $46,000 to $60,000 between 2007 and 2017.

So should this trend continue, the author of the article might be right.

Additionally, according to prognostics cited in an article from bankrate.com by 2040 nearly 70% of new homebuyers in the U.S. will be Hispanic.

But whatever the future brings (we never know for sure), you can’t ignore the demographic development to the present day and the effects it has and will likely have on the real estate market demand.

 If you read my article on how to market to first time homebuyers (usually Millennials), you will know that right now, Millennials are the largest buyer group after baby boomers.

And an interesting fact in this context is that 20% of the millennial population consists of Hispanics (source).

Most Hispanics (55%) live in California, Texas, and Florida, and since 2000, there‘s been a 10% increase in states, such as Utah, Oregon, Connecticut, Rhode Island, Washington, Kansas, Idaho, Massachusetts, Hawaii, Nebraska, and Oklahoma.

Due to these developments, some believe that Hispanics will have 56 percent share of all new homebuyers by 2030 (source).

So, while we can’t know for sure what will happen in the future, there are several reasons why you might want to consider marketing to Hispanics or taking this real estate niche at least into consideration:

 

  • A steady increase in the Hispanic population
  • Increase in Hispanic household income
  • Potential further increases of household income and population, and thus, housing demand in the future

The Real Estate Market Situation and Media Consumption of the Hispanic Target Group

Although the Hispanic population is rather a diverse one, there some similarities exist when it comes to home buying.

For instance, housing amounts to 39% of Hispanic financial assets.

This is an above-average number compared to other ethnic groups in the United States (source).

Unfortunately, this 39% are also the reason why the housing crisis or bubble from 2007 set many Hispanics back in terms of affording a down payment and/or having enough credit to finance a house.

This led many into high-risk and high-cost loans (source).

So, this situation from 2007 set many Hispanics back, and not all have recovered to this day.

Almost 20% of housing foreclosures in the U.S. happened in Hispanic communities between 2007 and 2015.

And according to Census information, the Hispanic homeownership rate still needs to recover to the peak of 50.1% it had in 2007 (source).

So, this situation is something to keep in mind when it comes to the purchasing process.

Growth Areas of Hispanic Homeowners

In order to know which geographic areas to focus on with respect to potential marketing campaigns, let’s also look at the growth areas of Hispanic homeowners (source).

CountyOwner-occupied units in 2012Owner-occupied units in 2017Ownership rate 2017Increase in Hispanic homeowners
District of Columbia5,6017,63032.15%36.23%
Montgomery County, Texas14,58419,75063.56%35.42%
Wake County, North Carolina8,79911,65644.80%32.47%
Hays County, Texas8,68511,48953.88%32.29%
Multnomah County, Oregon6,7328,69735.24%29.19%
Washoe County, Nevada9,88112,73143.7%28.84%
Prince William County, Virginia11,24014,35661.15%27.72%
Providence County, Rhode Island8,68710,78226.21%24.12%
Worcester County, Massachusetts5,3906,65225.07%23.41%
Bell County, Texas8,76110,81148.41%23.40%
Oklahoma County, Oklahoma12,68715,59648.40%22.93%
Orange County, New York9,11811,12454.31%22.00%
Middlesex County, Massachusetts8,40810,20629.02%21.38%
Madera County, California8,2109,95549.56%21.25%
Fulton County, Georgia5,7236,93333.65%21.14%
Pasco County, Florida10,41112,53260.51%20.37%
New York County, New York10,36612,4398.20%20.00%
Berks County, Pennsylvania7,6249,14241.30%19.91%
Weld County, Colorado10,23912,25555.66%19.69%
Westchester County, New York17,98821,49532.70%19.50%
Fort Bend County, Texas26,10031,18769.79%19.49%
Brazoria County, Texas15,64518,52666.36%18.41%
Gwinnett County, Georgia17,47720,38645.38%16.64%
Harris County, Texas224,526257,10349.17%14.51%

Hispanic Media Consumption

To know where and how to reach Hispanics when it comes to real estate marketing campaigns, let’s look at their media consumption:

  • In contrast to non-Hispanics, there is a higher use of Smartphones and Tablets, and thus, also more time is spent using apps and accessing the Internet on phones (source1, source2).
  • Although video is generally on the rise (see my article about it here), Hispanics also spend more time watching videos compared to non-Hispanics (85 minutes vs. 80 minutes).
  • Shopping is also done more often on tablets and smartphones compared to non-Hispanics (source).
  • Compared to non-Hispanics their attitudes towards advertising is overall more favorable across all channels (source).
  • According to a PopSugar Insights 2015 Hypercultural Report, 77% of Hispanics use Facebook, 75% YouTube, and 54% Instagram (source).
  • Hispanics in the two age groups of 18-34 and 35+ prefer to spend more time watching TV than engaging with other media
  • Hispanic millennials consume television 18 hours and 28 minutes a week, and the 35+ group spends 33 hours a week (source).

What About the Language?

There is a general rule of thumb you can apply. The higher the age, the higher the share of Hispanics preferring to communicate in Spanish.

The situation is still a bit complex, but I found a nice table to give you an overview of which language is preferred in which media or marketing channel (source):

 ReadingTVRadioOnline
Only in English37.9%31.6%26.8%44.4%
Mostly in English, But Some Spanish26.1%31.4%29.6%19.9%
Mostly in Spanish, But Some English14.8%16.6%18.5%9.1%
Only in Spanish17.5%13.3%17.5%13.9%
In Some Other Language0.3%0.9%0.6%0.5%

The Property Buying and Demand Situation for Hispanics

I also found interesting information about properties that are most in demand, and the overall purchase conditions of Hispanics in a National Association of Hispanic Real Estate Professionals from 2019.

According to this report, properties that were mostly purchased in 2018 had a median property value of $225,000. This is $30,000 less than the overall population.

It appears that Hispanics prefer to go for houses below the market median rate.

But, on the other hand, these are generally houses that are more expensive relative to their income compared to other populations.

This also means that they are often more leveraged than other ethnic groups.

I already mentioned this on a side note above, that they get more often loans at higher costs and risks.

Another fact is that Hispanic homebuyers make lower down payments (data from 2018).

The median down payment was 3.5% in contrast to 10% of the general population.

The same study shows that 71.6% of Hispanic homebuyers purchased homes with less than 10% down payment in 2018.

Hispanic homebuyers were also the youngest in 2018.

More than half (69.2%) were 44 or younger. The median age was 40.

Two further important facts for your potential marketing campaigns, later on, is that 60% of Hispanic homebuyers in 2018 were U.S.-born, and self-employed Hispanic homebuyers grew by 16.2% between 2013 and 2018.

And in ending this section, these homebuyers had a median household income of $68,000, which is 32.3% higher than the median income for the total of Hispanic households (source).

The Real Estate Market Situation and Media Consumption of the Hispanic Target Group

Although the Hispanic population is rather a diverse one, there some similarities exist when it comes to home buying.

For instance, housing amounts to 39% of Hispanic financial assets.

This is an above-average number compared to other ethnic groups in the United States (source).

Unfortunately, this 39% are also the reason why the housing crisis or bubble from 2007 set many Hispanics back in terms of affording a down payment and/or having enough credit to finance a house.

This led many into high-risk and high-cost loans (source).

So, this situation from 2007 set many Hispanics back, and not all have recovered to this day.

Almost 20% of housing foreclosures in the U.S. happened in Hispanic communities between 2007 and 2015.

And according to Census information, the Hispanic homeownership rate still needs to recover to the peak of 50.1% it had in 2007 (source).

So, this situation is something to keep in mind when it comes to the purchasing process.

Growth Areas of Hispanic Homeowners

To know which geographic areas to focus on with respect to potential marketing campaigns, let’s also look at the growth areas of Hispanic homeowners (source).

CountyOwner-occupied units in 2012Owner-occupied units in 2017Ownership rate 2017Increase in Hispanic homeowners
District of Columbia5,6017,63032.15%36.23%
Montgomery County, Texas14,58419,75063.56%35.42%
Wake County, North Carolina8,79911,65644.80%32.47%
Hays County, Texas8,68511,48953.88%32.29%
Multnomah County, Oregon6,7328,69735.24%29.19%
Washoe County, Nevada9,88112,73143.7%28.84%
Prince William County, Virginia11,24014,35661.15%27.72%
Providence County, Rhode Island8,68710,78226.21%24.12%
Worcester County, Massachusetts5,3906,65225.07%23.41%
Bell County, Texas8,76110,81148.41%23.40%
Oklahoma County, Oklahoma12,68715,59648.40%22.93%
Orange County, New York9,11811,12454.31%22.00%
Middlesex County, Massachusetts8,40810,20629.02%21.38%
Madera County, California8,2109,95549.56%21.25%
Fulton County, Georgia5,7236,93333.65%21.14%
Pasco County, Florida10,41112,53260.51%20.37%
New York County, New York10,36612,4398.20%20.00%
Berks County, Pennsylvania7,6249,14241.30%19.91%
Weld County, Colorado10,23912,25555.66%19.69%
Westchester County, New York17,98821,49532.70%19.50%
Fort Bend County, Texas26,10031,18769.79%19.49%
Brazoria County, Texas15,64518,52666.36%18.41%
Gwinnett County, Georgia17,47720,38645.38%16.64%
Harris County, Texas224,526257,10349.17%14.51%

Hispanic Media Consumption

To know where and how to reach Hispanics when it comes to real estate marketing campaigns, let’s look at their media consumption:

  • In contrast to non-Hispanics, there is a higher use of Smartphones and Tablets, and thus, also more time is spent using apps and accessing the Internet on phones (source).
  • Although video is generally on the rise (see my article about it here), Hispanics also spend more time watching videos compared to non-Hispanics (85 minutes vs. 80 minutes).
  • Shopping is also done more often on tablets and smartphones compared to non-Hispanics (source).
  • Compared to non-Hispanics their attitudes towards advertising is overall more favorable across all channels (source).
  • According to a PopSugar Insights 2015 Hypercultural Report, 77% of Hispanics use Facebook, 75% YouTube, and 54% Instagram (source).
  • Hispanics in the two age groups of 18-34 and 35+ prefer to spend more time watching TV than engaging with other media
  • Hispanic millennials consume television 18 hours and 28 minutes a week, and the 35+ group spends 33 hours a week (source).

What About the Language?

There is a general rule of thumb you can apply. The higher the age, the higher the share of Hispanics preferring to communicate in Spanish.

The situation is still a bit complex, but I found a nice table to give you an overview of which language is preferred in which media or marketing channel (source):

 ReadingTVRadioOnline
Only in English37.9%31.6%26.8%44.4%
Mostly in English, But Some Spanish26.1%31.4%29.6%19.9%
Mostly in Spanish, But Some English14.8%16.6%18.5%9.1%
Only in Spanish17.5%13.3%17.5%13.9%
In Some Other Language0.3%0.9%0.6%0.5%

This article has been reviewed by our editorial team. It has been approved for publication in accordance with our editorial policy.

Tobias Schnellbacher

Tobias Schnellbacher

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