For the first time ever, Hispanics are the second highest demographic comprising first-time homebuyers, according to a recent study by Movoto.Gerardo Ascencio, president of The National Association of Hispanic Real Estate Professionals, cited two reasons for the trend: a higher birthrate and purchasing power.
The Hispanic population is one of the fastest-growing minority populations in America, which has more than tripled since 1980. In fact, the U.S. Census Bureau predicts the Hispanic population will continue its rapid growth through 2050.
The purchasing power of Hispanics is also continuing to grow right along with its population. A Nielsen study expects Hispanics’ purchasing power to hit $1.5 trillion, an increase from $1 trillion in 2010. The rise can be attributed to achievements in education and increasing numbers of Hispanics opening small businesses.
If Hispanics’ purchasing power continues to rise, we may begin to see the housing market change as a result. For starters, Hispanics will comprise a larger share of homeowners, which could push poorer demographics out.
Additionally, we can expect to see more ads, products, campaigns and companies focusing on the Hispanic population, according to Nielsen.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.