NAHREP Report: Hispanic Homebuyer Mega Market Is Emerging
Hispanic Real Estate Leaders Say Youth, Population Growth, Household Formation, High Desire, Labor Force Trend, to Make Latinos an Exponential Force in Housing
SAN DIEGO--(BUSINESS WIRE)--The era of the Hispanic homebuyer is upon us, according to the 2011 State of Hispanic Homeownership Report released this week by the National Association of Hispanic Real Estate Professionals (NAHREP). The 36-page document offers an analysis of data on the Hispanic homebuyer market and points to youth, birth rates, household formation, rising purchasing power, labor trends, educational achievements and desire as key indicators that will make Latinos a major purchase force in the first-time homebuyer market. A digital copy of the report is available for download at: http://nahrep.org/state-of-hispanic-homeownership.php
“Despite recent losses suffered by Hispanics during the housing crisis, young Latino families that were unaffected by foreclosure or lost home values are ready to enter the market”
“Despite recent losses suffered by Hispanics during the housing crisis, young Latino families that were unaffected by foreclosure or lost home values are ready to enter the market,” said Carmen Mercado, president of the 20,000-member group. “When they do, they will have an exponential impact on housing sales.”
According to the report, demographic forces are aligning with Latinos poised to take center stage as a mega force in housing. Latinos filled 1.4 million or 60 percent of the 2.3 million jobs added to the economy in 2011, are expected to account for 40 percent of the estimated 12 million new households over the next 10 years, and their collective purchasing power is expected to jump 50 percent by 2016 – just four short years from now.
Hispanic homeownership grew by 288,000 units in the third quarter of 2011, accounting for more than half the total growth in owner-occupant homeownership in the United States. Hispanic real estate leaders maintain that while this is just a short-term indicator, it is an example of what’s to come as Latino echo boomers move from renting to homeownership. They also predict as Latinos start to buy en masse that total owner-occupant housing units purchased – not homeownership rate – will be the most outstanding metric of the group.
“In recent years, the headlines have focused on foreclosure and wealth losses in the Hispanic community. But the untold story is the growth, labor force participation, higher educational achievements and attitudes toward homeownership that are crystallizing into a trend with Latinos taking center stage as a mega force in housing,” added Mercado.
The report, which was written by former Housing Fellow, Researcher, Author & Watchdog Alejandro Becerra, asserts that due to a combination of forces Hispanics are poised to become a mega consumer force in housing:
· Population Driver: The Hispanic population expanded 3.5 times between 1980 and 2010. Since 1980, more than two in five (44 percent) persons added to the U.S. population have been Hispanic. From 2000 to 2009, Whites experienced 1.1 births for every 1.0 death, while Hispanics experienced 8.9 births for every death, implying a sizeable widening of the growth rates between the two major population groups. Hispanics were responsible for most of the overall population growth in the country over the past decade.
· Consumerism: The Hispanic market made up over 50 percent of real growth in the U.S. consumer economy from 2005 to 2008. During that time span, the $52 billion in new Hispanic spending outpaced the $40 billion in new spending by non-Hispanics, with Hispanic consumer spending increasing by 6.4 percent while non-Hispanic spending increased by only 2.9 percent.
· Labor Force: Latinos filled 1.4 million or 60 percent of the 2.3 million jobs added to the economy in 2011. Hispanics are expected to account for 74 percent of the growth in the nation’s labor force from 2010 to 2020.
· Mobility: Hispanics are mobile and willing to relocate where employment is available. Hispanics alone drove the population growth of Philadelphia, Phoenix, Indianapolis, Omaha, and Atlanta, and comprised the greatest component of population increases in San Antonio, Fort Worth, and El Paso, and Raleigh and Charlotte, North Carolina.
· Education: From 2009 to 2010, the number of Hispanic young adults enrolled in college grew by 349,000 (a remarkable increase of 24 percent), compared with a decrease of 320,000 among young non-Hispanic Whites. In 2010, 73 percent of young Hispanics completed high school, up from 60 percent in 2000, and 32 percent of young Hispanics were enrolled in college, up from 22 percent in 2000.
National housing surveys continue to demonstrate that Hispanics strongly aspire to become homeowners in spite of uncertainty over jobs and the general economy. In particular, surveys also show that almost two in three Hispanic renters maintain high aspirations for owning a home.
Hispanic real estate leaders assert that changes in the nation’s housing finance system must be made to accommodate the mega force of first-time homebuyers entering the market between now and 2020. This includes creating access to affordable, safe mortgage products and low-priced bank owned properties that meet financing standards, among other measures.
“New household growth will be substantially greater for Hispanics than for any other demographic group in the country,” said David Stevens, president of the Mortgage Banker’s Association. “The need to recognize the most critical variables in housing type, price range, affordability, and mortgage product terms will be critical for all housing stakeholders – from lenders and realtors to policy makers – in order to ensure that the homeownership needs of Hispanics and other Americans are met.”
The 2011 State of Hispanic Homeownership Report includes policy recommendations from Hispanic real estate leaders that are needed to accommodate new buyers. This includes: Improved access to affordable mortgage financing, no new taxes or increased fees on mortgages, increased supplier diversity, improved access to REO listings for owner-occupant buyers, sensible immigration reforms and continued financial education for mortgagees.
The National Association of Hispanic Real Estate Professionals, a non-profit 501c6 trade association, is dedicated to increasing the homeownership rate among Latinos by educating and empowering the real estate professionals that serve them. Based in San Diego, NAHREP is the premier trade organization for Hispanics and has more than 20,000 members in 48 states and 50 affiliate chapters.
US Hispanic Media Inc., a Subsidiary of S.A. La Nacion, Becomes Controlling Shareholder of impreMedia
Prestigious Latin American Media Company Reaches an Agreement with Leading Media Company Among Hispanic Community
LOS ANGELES, Mar 12, 2012 (BUSINESS WIRE) -- impreMedia announced today that US Hispanic Media Inc. (USHM), a subsidiary of S.A. La Nacion, has reached an agreement to become impreMedia's strategic and controlling shareholder. This agreement will enable impreMedia to accelerate its transformation into a robust multimedia company by combining impreMedia's knowledge of and access to the U.S. Hispanic market with USHM and La Nacion's know-how and successful track record across print and online media platforms in Latin America.
"impreMedia has a strong history of quality content that deeply engages audiences, local brands that resonate with the local communities they serve, market knowledge and an entrepreneurial approach. These elements constitute an outstanding platform for further development of new products, with an aim to attract new audiences and become the first choice for advertisers addressing the US Hispanic market," stated Eduardo Lomanto, USHM President.
Monica Lozano will remain CEO of impreMedia. Its editorial content will remain under the direction and control of impreMedia's newsroom staff, and current management of impreMedia will also remain. In addition, Francisco Seghezzo, former Corporate Planning Director of S.A. La Nacion, will join impreMedia as COO.
"Monica Lozano is a highly respected figure in Hispanic media and the Hispanic community. Under her remarkable leadership, she has built a powerful team and a strong portfolio of brands. Her expertise and strategic insights are vital to us as we execute plans for growth and diversification," continued Mr. Lomanto.
The 2010 Census re-confirmed the undisputed importance of the U.S. Hispanic market. The arrival of a prominent Latin American media company signals the increased confidence of international firms in the exploding U.S. Hispanic media market, and also in an established entity and important player in the industry like impreMedia.
"USHM and La Nacion bring both the expertise and resources needed to take us to the next level. La Nacion, established as a national Argentine newspaper in 1870, has strong ties with the most important newspapers in Latin America, and is a founding member of the Grupo de Diarios America, an association that includes the most prestigious papers of the region. During the last decade, it has been successful in transforming its profile to also become a top magazine publisher and a digital company with strong product offerings across all platforms, and presence in several Latin American countries and Spain. Their recent award from the Online News Association for 'General Excellence in an Online News Site' is a testament to their digital prowess," said Monica Lozano, CEO of ImpreMedia.
Leading advertisers look to impreMedia to reach the growing Hispanic market. According to Kantar, ten out of the top ten largest advertisers all advertised with impreMedia in 2011. "impreMedia is one of the most innovative media companies there is. We know we can turn to them not only for reach and results but also for 'the big idea'," stated Steven Wolfe Pereira, Executive Vice President and Managing Director of MediaVest, MV42.
impreMedia, the No. 1 Hispanic news and information company in the U.S. in print and a key online player, widely known for its top brands such as La Opinion, El Diario and Vista, reaches 25% of all US Hispanics with an audience size of almost 11 million and a footprint in 15 top Hispanic markets. Over the past year it has experienced an unprecedented 34% growth in total audience and has almost doubled its online audience.
Stephens Inc. acted as advisor of impreMedia.
impreMedia is the leading Hispanic news and information company in the U.S. in online and print. impreMedia's multi-platform offerings range from online to video, social media, mobile and print. Twenty-five percent of U.S. Hispanic adults use an impreMedia product. impreMedia is also the nation's largest Hispanic newspaper publisher with newspapers in top U.S. Hispanic markets, reaching 15 markets total that represent 59% of the U.S. Hispanic population. Its leading publications include La Opinion in Los Angeles and El Diario La Prensa in New York. For more information, visit: http://www.impremedia.net .
impreMedia's websites include: www.impremedia.com , www.laopinion.com , www.eldiariony.com , www.hoynyc.com , www.laraza.com , www.laprensafl.com , www.elmensajero.com , www.rumbotx.com , www.vistamagazine.com and www.lavibra.com .
About S.A. La Nacion
S.A. La Nacion is one of the most important media companies in Argentina. It publishes the newspaper La Nacion, one of the most traditional and prestigious in Latin America. Its operations include publishing magazines and managing news and information websites. Its subsidiary Dridco runs online classified websites for jobs, real estate and cars in Latin America and Spain. Its consolidated revenue reaches $250 MM per year and it employs 1,500 people in all its companies.