Hispanics have played a significant role in driving the growth of homeownership in the U.S. The 2000 Census reports that more than 35 million Hispanics reside in the U.S., an increase of nearly 58 percent since 1990. Recent Census figures show the Hispanic community is the fastest growing demographic group in the country.

Similarly, the Joint Center for Housing Studies at Harvard University, recently found that the number of Hispanic households rose 19 percent during the last five years. During the next 20 years, the center predicts an increase of nearly 23 percent in the number of families in the U.S., with nearly two-thirds of the growth fueled by minority households.

Not surprisingly, the gain in Hispanic population in the U.S. has been accompanied by a rise in homeownership, to a historic high of 46 percent in 2000, up from 42 percent in 1990. Three out of every five first-time homebuyers are expected to be minorities during the balance of this decade. Despite that encouraging statistic, the rate of Hispanic homeownership is still well below the national average. It is clear that much remains to be done to close the gap.

Recognizing the important connection between the health of the residential real estate market and the well being of the national economy, the Bush Administration has made increasing homeownership-particularly among minorities- a focal point of its governance. In keeping with that direction, President George W. Bush last year announced initiatives aimed directly at making homeownership among minorities a national priority.

The “American Dream Down Payment Fund” was established to provide funding to help 40,000 families to become homeowners annually. On the supply side, a proposed single-family housing tax credit will encourage the construction of affordable single-family housing. The credits are projected to create an opportunity for 200,000 families to purchase new homes during the first five years of the program.

From a real estate industry perspective, there is much that can be done to close the ownership gap, as well. In addition to being well versed in addressing concerns common to every homebuyer, real estate professionals who wish to serve the Hispanic community successfully must be responsive to cultural diversity and be prepared to respond to its distinctive needs.

As part of a nationwide effort to help millions of diverse homebuyers in the U.S. realize the dream of homeownership, Cendant Corporation – on behalf of its franchised real estate brokerage networks, including ERA® – is working closely with other industry leaders. In 1999, Cendant and the National Association of Realtors® (NAR) co-launched “At Home with Diversity,” a certification course offered by NAR, to raise awareness of cultural and social differences and their potential impact on the real estate transaction.

More recently, Cendant entered into a strategic alliance with the National Association of Hispanic Real Estate Professionals (NAHREP) to jointly undertake initiatives that focus on developing viable solutions to the challenges that face all real estate professionals as they strive to better serve the Hispanic population.

Similarly, the ERA network is celebrating the commitment of its affiliates to diverse communities with the brand’s “Building Business Through Diversity Award.” The accolade recognizes the office’s role as an ethnic-conscious and progressive company within the community. ERA affiliates may also participate in a specialized training course that explores the relationship between culture and real estate business.

There is much that Realtors can do to help Hispanics achieve the dream of homeownership:

Develop Marketing that Recognizes Cultural Diversity - Addressing the needs of Hispanic homebuyers must be reflected in a coordinated marketing effort. The ERA Hispanic Marketing program acknowledges the importance of Hispanic homebuyers through a national marketing campaign that better equips sales professionals to assist Hispanic clients. National television commercials, a special series of print ads and other marketing materials are tailored specifically to a Spanish-speaking audience.

Encourage Bilingual Recruiting and Training – Real estate companies must actively encourage the recruiting, retention and training of Realtors who are fluent in both English and Spanish. Training programs in Spanish offer bilingual Realtors a path for professional improvement. AccelERAtion, a comprehensive course of study for ERA sales associates, is available in Spanish.

Offer Financing Options that Recognize Diverse Needs - Embracing diversity in the real estate marketplace must extend to home financing. ERA Mortgage offers more than 100 different mortgage products to help homebuyers find a financing program that suits their needs.

Educate Potential Homebuyers – Many Hispanics who visit a real estate Web site or real estate office are purchasing a home for the first time. Sales associates must be prepared to assume the role of educator, offer clear answers to the innumerable questions that lead to homeownership.

Diversity is one of our America’s greatest strengths. Diversity can also be one of the greatest sources of continued growth and success for both real estate professionals and the Hispanic community they serve.

Published: February 10, 2003

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