The CENTURY 21® First-Time Homebuyer Index offers some surprising insights into the Hispanic first-time homebuyer market. This group is not only younger than white and African American first-time homebuyers, they are likely to spend much more on their first home.

Identifying the unique needs of Hispanic first-time homeowners, the survey yielded the following results.

• Hispanic first-time homebuyer respondents (mean age 30) are younger than whites (mean age 34) and African Americans (mean age 35)

• No significant income difference was determined among Hispanics, whites and African-Americans surveyed

• Hispanic respondents are likely to pay more for a first home ($262,000) than both white ($196,000) and African American ($215,000) respondents, a finding that could be influenced by the following factors:

  • Significantly more Hispanics (30 percent) reside in the West region of the U.S. than white respondents (15 percent). The survey showed that first-time buyers in the West pay more on average ($303,000) than in the Northeast ($252,000), North/Central ($178,000) and South ($173,000)

  • 27 percent plan to have elderly family members move in (vs. 12 percent non-Hispanic)

  • More Hispanics (17 percent) cite marriage as the primary reason for purchasing a first home than whites (10 percent)

  • 20 percent of Hispanics listed access to public transportation as an important factor in buying a new home (versus 12 percent of white respondents)

  • Hispanics favor suburban areas for their dream home (52 percent versus 42 percent of whites) and prefer houses to be in close proximity rather than secluded

  • Hispanics were more likely to desire an attached dwelling (8 percent) than whites (3 percent) or blacks (2 percent)

  • From a list of major metros, Hispanics rated New York, Los Angeles, Miami, Houston, and San Diego higher than Non-Hispanic whites as ideal cities for a dream home

According to the National Association of Realtors' 2004 Profile of Home Buyers and Sellers, 77 percent of first-time home buyers are white, while 88 percent of repeat buyers are; 10 percent of first-timers are Afro-American and seven percent are Hispanic. Five percent of all homebuyers are Hispanic. Seven percent are first-time homebuyers and four percent are repeat home buyers.

Published: November 16, 2005

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