Hispanics are the most rapidly growing ethnic group in the United States, more than doubling in number over the past 20 years. This demographic that accounts for a fifth of the millennial population will play an ever-increasing and important role in the housing market, upcoming elections, and the future of the country as a whole. However, Hispanics rank well below the national average when it comes to homeownership, as shown in the figure below. Owning a home is considered to be an indicator of economic well-being with many benefits attached, so this is a topic worthy of examination and discussion.

So what is behind this homeownership gap? Other than ethnicity directly, Hispanics are, as a population cohort, younger than Non-Hispanic Whites.  In the figure below is an age pyramid of Hispanics compared to Whites. The Hispanic population is patterned in what is known as an expansive age pyramid indicating a high birth rate and a generally young population while the Non-Hispanic White population forms a constrictive graph indicating low birth rates and a generally aging population.  Hispanics clearly have a much younger population with a median age of 25.8 as opposed to Non-Hispanic Whites who have a median age of 41.2.

If the Hispanic population is significantly younger, then what does that mean for the homeownership gap? It will come as no surprise that there is a strong relationship between age and homeownership, as evidenced by the massive jump between those under 35 and the next age bracket up in the figure below. While those under 35 have hovered around 40% ownership since 1990, those aged between 35 and 45 enjoy a homeownership rate in the upper 60’s. As age increases, homeownership rates get closer and closer together until they reach a barely discernable difference between the 55-64 group and the 65+ group, both of which stay around 80%.

Given the Hispanic and Non-Hispanic White median ages (25.8 and 41.2 respectively), the corresponding age brackets have an average historical difference in homeownership rates of 26.5%. This corresponds strongly with the average historical difference in homeownership between Hispanics and Non-Hispanic Whites as a whole, which is 27.4%. While this does not provide a full and complete answer, it does demonstrate how closely homeownership is tied to the age of a population. However, it’s clear that as the Hispanic population ages, they will be a driving force in the housing market, and they may have an even more dramatic impact than many people believe.

Connor Curie contributed to this post.