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.
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).
|County||Owner-occupied units in 2012||Owner-occupied units in 2017||Ownership rate 2017||Increase in Hispanic homeowners|
|District of Columbia||5,601||7,630||32.15%||36.23%|
|Montgomery County, Texas||14,584||19,750||63.56%||35.42%|
|Wake County, North Carolina||8,799||11,656||44.80%||32.47%|
|Hays County, Texas||8,685||11,489||53.88%||32.29%|
|Multnomah County, Oregon||6,732||8,697||35.24%||29.19%|
|Washoe County, Nevada||9,881||12,731||43.7%||28.84%|
|Prince William County, Virginia||11,240||14,356||61.15%||27.72%|
|Providence County, Rhode Island||8,687||10,782||26.21%||24.12%|
|Worcester County, Massachusetts||5,390||6,652||25.07%||23.41%
|Bell County, Texas||8,761||10,811||48.41%||23.40%|
|Oklahoma County, Oklahoma||12,687||15,596||48.40%||22.93%|
|Orange County, New York||9,118||11,124||54.31%||22.00%|
|Middlesex County, Massachusetts||8,408||10,206||29.02%||21.38%|
|Madera County, California||8,210||9,955||49.56%||21.25%|
|Fulton County, Georgia||5,723||6,933||33.65%||21.14%|
|Pasco County, Florida||10,411||12,532||60.51%||20.37%|
|New York County, New York||10,366||12,439||8.20%||20.00%|
|Berks County, Pennsylvania||7,624||9,142||41.30%||19.91%|
|Weld County, Colorado||10,239||12,255||55.66%||19.69%|
|Westchester County, New York||17,988||21,495||32.70%||19.50%|
|Fort Bend County, Texas||26,100||31,187||69.79%||19.49%|
|Brazoria County, Texas||15,645||18,526||66.36%||18.41%|
|Gwinnett County, Georgia||17,477||20,386||45.38%||16.64%|
|Harris County, Texas||224,526||257,103||49.17%||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):
|Only in English||37.9%||31.6%||26.8%||44.4%|
|Mostly in English, But Some Spanish||26.1%||31.4%||29.6%||19.9%|
|Mostly in Spanish, But Some English||14.8%||16.6%||18.5%||9.1%|
|Only in Spanish||17.5%||13.3%||17.5%||13.9%|
|In Some Other Language||0.3%||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).
Marketing Ideas and Strategies for the Hispanic Real Estate Market
In order to go further into potential real estate marketing ideas and strategies for Hispanics, let’s summarize the audience research part in a table, so you have the relevant data in one glance.
After that, we can translate that into a marketing plan or strategy.
Age Range 40+
Geographic Targeting Florida, California, Texas
Geographic Targeting of Growth Areas Utah, Oregon, Connecticut, Rhode Island, Washington, Kansas, Idaho, Massachusetts, Hawaii, Nebraska, and Oklahoma
Devices Smartphones, Tablets
Content Type Online Video
Online Marketing Channels YouTube, Facebook, Instagram
Offline Marketing Channels TV
Main Language for the Ad Copy
Mostly English, but some "Spanglish" might help to increase relevance
Housing Prices $225,000
Property Financing Loans with 2.5% down payment as an option, maybe also the option for a rent to own deal
Profession Self Employed
Median Household Income $68,000
So, this table should give you a good idea of where the marketing strategy might lead to.
I only included data that is relevant to the typical age group of the respective Hispanic audience segment of homebuyers.
This is because the ideal marketing channels depends on the media behavior of the respective age group, which, in our case, is 40+.
When it comes to online advertising campaigns, I will go for pay per click advertising with a focus on video.
his can be done by doing Google Video Ads on YouTube or Facebook Video Ads.
Both have advantages and disadvantages.
With Facebook Ads, you can go more “sniper style” in terms of audience targeting, and with Google Video Ads, you can use the search intent and advertise on relevant already highly ranked videos.
This route will get you faster results but will require you to spend more money on ads.
Of course, you could also go the content marketing route and build up a following on YouTube, Instagram or Facebook.
But as I already mentioned in my article about the best social media platforms for real estate, in this case, I would focus on YouTube.
Unfortunately, the other social media platforms don’t give you the same organic reach as they did several years back.
This approach will take more time until you get the first results.
Of course, you could do a hybrid approach and do both (pay per click advertising, and content marketing with video growing a following).
This all depends on the time and money resources you have.
Let’s stay for a moment with the pay per click advertising route.
Ideally, your real estate business is already operating in the mentioned geographic areas with most Hispanics and/or where there is a growth in Hispanic homeowners.
You can now target only these areas, be it with Facebook Video Ads or Google Video Ads (on YouTube).
Your ad placements should exclude desktop because they mainly use smartphones and tablets.
On the ad platforms (especially on Facebook), you can also test if you get even better results when you target not only people from the age group of 40+ but also a certain annual income.
In the case of Hispanics, this would be $68,000.
This targeting option can also be done with Google Ads (limited to the U.S.).
Another targeting option that you can test is narrowing your audience by targeting only self-employed individuals and also selecting the language option of English and Spanish speaking.
The same language selection can also be made with Google Video Ads.
If you have some additional marketing money to spend, you might even consider advertising on local TV stations where you know they have a mainly Hispanic audience.
As a realtor or real estate investor, you only want to focus on and advertise houses in the $225,000 price range, and to sweeten the deal or improve the offer, you can already work with mortgage brokers, where you know that they have access to loans where 2.5% down payments are a possibility.
Another option here could be to know already if the seller of the respective houses would be willing to do some sort of lease purchase or rent to own deal.
As a real estate investor, you might be able to structure such a deal by yourself, should you specialize in these kinds of more creative real estate investing strategies.
The ad copy and copywriting of your whole campaign (including ads, and landing pages) should take the bilingual situation into consideration.
Although the buyer audience uses mainly English, it may not be a bad idea to mix some Spanish words in your copy, hence Spanglish. This might also improve your conversion rates.