Page 48 - Synchrony US Hispanic Market Playbook

HOME IMPROVEMENT

The Urban Institute projects that by 2040, 70 percent of the net new homeowner
households in the United States will be Latino. The group projects that Black and White
homeownership rates will decline during that same period. And while Hispanics make

up about 18 percent of the country’s population, they accounted for more than half of
the country’s homeownership growth in the decade leading up to the pandemic, Urban
Institute research shows.

Latino buying power will likely grow because their population skews much younger
than other racial and ethnic groups. Hispanics in the United States had a median age

of 30 in 2019, roughly 15 years younger than the median age for non-Hispanic White
Americans, according to Pew Research.

Hispanics have unique needs when purchasing homes that present an opportunity for
the Home Improvement sector. FreddieMac understands this and urges their
associates to understand that, for example, it is important for family-oriented
Hispanics to live within a close radius of their nucleus, so they may be hesitant to
consider a potential home that is farther out. Likewise, rather than dissuading a
smaller family from making an offer on a larger house, they advise to keep in mind that

they might anticipate needing the extra space for future multi-generational needs and
ask them to encourage lower-priced homes that require renovations versus properties
that are move-in ready. Hispanics are resilient, unafraid of hard work and driven by
helping each other and working together to achieve their family dream.

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