The question of who has what in terms of money and assets is always a complex matter, which means that the just-issued report by the Pew Hispanic Center on the "wealth gap" needs to be read with some context.

"The Wealth of Hispanic Households: 1996 to 2002" found that the median net worth of non-Hispanic White households amounted to $88,651. This compares with $7,932 for Hispanic households and $5,988 for non-Hispanic Blacks.

By any standard these are pronounced differences, differences explained to some degree by homeownership patterns.

"The percentage of White households who owned homes in 2002 was 74.3 percent," says the study. "The homeownership rates for Hispanic and non-Hispanic Blacks were 47.3 percent and 47.7 percent respectively."

Given what we know about rising home values, it's easy to see where some of the wealth gap originates. For example, the National Association of Realtors reports that in August the median existing-home price was $190,100 -- that's up from $177,200 in August 2003. That's an increase of $12,900 for a typical homeowner -- more in some place, less in others and nothing for those who rent.

"Home equity is a key component of household wealth and accounts for two-thirds of the mean net worth of Hispanic and non-Hispanic Black households," says Pew. "The strength of the housing market in the recent economic slowdown eased the erosion in wealth of households which can be traced to the loss in value of financial assets."

As to renters, Pew says "the median net worth of renters is only one percent of the level of net worth of homeowners."

What explains different rates of homeownership? Pew offers these observations:

• "The net worth of immigrant households is only 37 percent of the net worth of native born households. Immigrants tend to be younger and less educated and their incomes are below average. Many are also in the early stages of assimilation."

• "Hispanic immigrants from Central American and Caribbean countries had a net worth of only $2,508 in 2002. Cuban immigrants led the way for first generation Hispanics with a net worth of $39,787. Mexican immigrants are in the middle with a net worth of $7,602 in 2002."

• "Immigrants, Hispanic and non-Hispanic, show initial signs of rapid assimilation into homeownership, but it takes about 20 years for the homeownership rate among immigrants to equal the rate among native-born households of the same ethnicity."

Given that Hispanics are now our largest minority group, the numbers above suggest there are huge opportunities for brokers, builders and lenders -- especially in the first-time buyer market and with entry-level financing. Why? Because here's a vast new market that is just beginning to emerge. Large numbers of Hispanic consumers do not now own homes -- a condition that will change with time.

The Pew report means that if you're a real estate professional it would surely make sense to check-out advertising and coverage opportunities in your community's Spanish-language media. It also means that webpages in more than one language likely have more value than in the past.

The complete report is available online in a PDF format at the Pew Hispanic Center.

For more articles by Peter G. Miller, please press here.

Published: October 19, 2004

Use of this article without permission is a violation of federal copyright laws.

Peter G. Miller, also known as OurBroker®, is the author of six real estate books -- including The Common-Sense Mortgage -- and is the original creator and host of America Online's Real Estate Center. Peter's weekly columns appear in more than 100 newspapers nationwide, he is also published in a variety of other media outlets and he is a frequent speaker at national events and conventions. Peter welcomes your questions, comments, and news releases via e-mail at .