Hispanic Heritage Month, which takes place September 15 - October 15, is an annual event that commemorates the history and culture of the U.S. Latinx and Hispanic communities. This month is an opportunity to shine a light on how those communities have influenced and contributed to American society at large.
“Hispanic Heritage Month actually began as a commemorative week when it was first introduced in June of 1968 by California Congressman George E. Brown. The push to recognize the contributions of the Latinx community had gained momentum throughout the 1960s when the civil rights movement was at its peak and there was a growing awareness of the United States' multicultural identities,” states a page dedicated to the event on History.com.
At Fund.me, we are proud to be celebrating Hispanic and Latino culture by highlighting the impact the Latinx community has made and continues to make in real estate. We believe the Latinx community is an integral part of the vision we hope to make a reality - a world where equity capital is accessible for every real estate entrepreneur. A survey by the Hispanic Wealth Project showed that Latinos are most likely to build wealth through real estate, as opposed to other investment types.
For many Latinx people, even homeownership has historically been a struggle in the US due to systemic barriers and lack of resources. Access to credit is one of the main challenges in the Latinx community, making it harder for them to qualify for mortgages. Also, many Hispanic families are small-business owners, and self-employed borrowers have a harder time qualifying for mortgages due to tougher qualifying criteria.
Despite these barriers, Latinos continue to pursue the American Dream and the goal of financial freedom. This ability to control one’s own wealth and destiny resonates strongly with the Latinx community and its large contingent of entrepreneurs and business owners. Real estate is one of the most tried-and-true sources of wealth creation available, with a relatively low barrier of entry and many different opportunities within the space, such as homeownership, investing, wholesaling, or being an agent or broker.
Below are some interesting numbers acquired from the 2022 Hispanic Real Estate Survey (Realtor.com) :
Latinxs are beginning to make headway in the real estate investing space. Recent studies show that Latinos are 25% more likely to own an investment property outside of their primary residence than comparable non-hispanic white households. Over the past few years in particular, Latinos have become a growing force in real estate, with many entering the space as realtors and later transitioning to investors. According to the Washington Post, the rise is altering the real estate landscape in many pockets of the country and making this demographic a force to be reckoned with in the sharply rising housing market.
Many of the areas of the U.S. sharing borders with Latin countries already know the power of Latinx investment. Now, the real estate industry, long a wealth-building tool systemically barricaded from Latinx communities, is turning into a catalyst for rapidly shrinking their wealth gap. When it comes to building generational wealth, Homeownership is a strong foundation for the Hispanic/Latinx community and it will continue to grow. This is the ripple effect of tearing down barriers and using financial literacy as a tool for empowerment.
According to the 2021 HWP Survey, in the next five years, 53% of Latinos plan to buy a home. Thirty-six percent plan to buy an investment. In all, the proportion of Latinos looking to invest in real estate nearly triples that of white buyers.
At Fund.me, we have had the opportunity to witness, first hand, the progress and expansion of Latinx communities in the real estate space. We’re excited to contribute to this progress, and hope to serve the Latinx community by providing access and opportunities in the real estate investing space. We’re proud to celebrate Hispanic Heritage Month and to shine a light on this vibrant, thriving community within those we serve.