Who will drive housing for the next decade(s)?
Hispanics, already a prominent force in the U.S. housing market, are about to take over as the nation’s dominant group of homebuyers. A study by the Urban Institute forecasts that Latinos will become a major demographic force in the coming years.
The nonprofit’s recent report predicts that by 2040, fully 70 percent of new U.S. homeowners will be Hispanic.
The Urban Institute breaks it down:
In 1990, just 7.3 percent of young households (headed by someone younger than 65) were Hispanic.
By 2020, that had more than doubled to 16.4 percent.
“We project that this share will continue to increase in the next two decades, and that by 2040, more than 20 percent of young households will be Hispanic—triple the share in 1990,” the report states.
The Hispanic household share will likely explode because the Hispanic population today is much younger than other racial and ethnic groups—meaning they are aging into the prime years for household formation.
However, Hispanics face unique challenges and the Urban Institute recommends three changes that could reduce the barriers to homeownership for Hispanic households (be sure to read the report for more in-depth answers:
Expand the use of down payment assistance.
Expand access to mortgage credit.
Support an increased supply of affordable housing and allow for more multigenerational living at the local level.
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Redwood makes strategic investment in Churchill
Redwood Trust last week announced a minority preferred equity investment in Churchill Finance, a vertically-integrated real estate finance company based in New York, NY.
Operating since 2014, Churchill focuses on the origination, aggregation, and asset management of real estate credit products backed by residential, multifamily and commercial properties.
The investment will help grow and diversify the asset sourcing channels for CoreVest, a Redwood Trust company and the market's leading lender to residential real estate investors.
“A strategic partnership with Churchill accelerates our strategy to further expand our footprint in the $90 billion businesspurpose lending market. Churchill has developed a unique business model with attractive adjacencies to our core business,” said Beth O'Brien, Chief Executive Officer of CoreVest, in a statement.
The investment will also provide growth capital for Churchill as well as access to additional capital markets expertise.
Investment proceeds will be used for a combination of capital to invest in strategic growth initiatives of Churchill, and for deployment into financial assets originated by Churchill across its investment verticals.
🔥 Breaking Down Biden's $25,000 First Time Home Buyer Grant 2021 🔥
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CoreLogic: Economy will expand at fastest rate since 1984
For families experiencing financial distress, the year began on an encouraging note with delinquencies at the lowest rate that they’ve been since the onset of the pandemic, according to a new report from CoreLogic.
However, despite this progress, millions of homeowners remain in forbearance. Nonetheless, the chief economist gives a sweet prediction in the report:
“The transition rate from current to delinquent this January was the lowest in twelve months, which is another hopeful sign that family finances are beginning to improve. Further, the transition from 30- to 60-day delinquency was the lowest since last March and is likely to decline further with strong job growth. The consensus view among economists is that the 2021 economy will expand at the fastest rate since 1984,” said Dr. Frank Nothaft, chief economist for CoreLogic.
Here are the highlights from the report, have a great week everyone!
The nation’s overall delinquency rate for January was 5.6%.
The rate for early-stage delinquencies – defined as 30 to 59 days.
past due – was 1.3% in January 2021, down from 1.7% in January 2020.
The share of mortgages 60 to 89 days past due was 0.5%, down from 0.6% in January 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 3.8%, up from 1.2% in January 2020.
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