Hispanic Homeownership Drops to Lowest Level Since 1999

2.5 million Latinos will fail to reach homeownersip goal in next 5 years  Texas Insider Report: WASHINGTON D.C. The Obama Administration needs to work with Congress to reduce government mandates and focus on policies to spur job creation with better wages. The only durable way to bridge the gap and provide opportunities for Latinos to reach their American Dream is tackling our tumbling economy with a concrete path of growth says The LIBRE Initiatives executive director Daniel Garza.   Our community is facing financial challenges that are largely due to a struggling economy. Despite the promises of an improved economy greater opportunity and a better chance to achieve the American Dream Latino families are still lagging behind  Garza said. According to new research by the nonprofit Demand Institute 2.5 million Latinos will fail to reach their goal of owning a home over the next 5 years. The Demand Institutes research jointly operated by The Conference Board and Nielsen shows that just 1.5 million Hispanics are prepared financially to be homeowners - with 31 of those surveyed in an accompanying poll saying the lack of savings was the main barrier. Low income and a lack of access to credit are also significant impediments. Furthermore a report by the National Association of Hispanic Real Estate Professionals (NAHREP) showed that Hispanic homeownership rate has dropped to its lowest level since 1999 even as 320000 new Hispanic households were formed during the year. In this 5th installment the NAHREP Report highlights Hispanics homeownership rates and household formation rates as well as their educational achievements entrepreneurial endeavors labor force profile and purchasing power in the United States. Homeownership signifies stability success and most importantly for many it symbolizes the American Dream said The LIBRE Initiatives executive director Daniel Garza. Saving for a down payment and getting approved for a mortgage remain huge challenges for millions.

Its time for a new approach - not a repeat of the failed policies of the past which used government mandates and taxpayer dollars to extend loans that borrowers would never be able to repay. We all deserve a shot at the American Dream but government needs to loosen the ropes on this countrys economic drivers Garza (right) said.

The understandable zeal to expand homeownership should not result in the repeat of the home mortgage crisis Americans endured in 2007-2009 Garza added.