Latino homeowners face 'affordability crisis' in inflated housing market

Yahoo Finance reporter Dani Romero details how Latino homeownership is still lagging due to affordability issues.

Video transcript

RACHELLE AKUFFO: Well, buying a home is often a challenge for many Americans, but there are a few factors that disproportionately impact Latino homebuyers. Dani Romero is here with more on that. So Dani, what are Latino homebuyers really being affected by?

DANI ROMERO: Well, you know, I think that's a really good point, what you were saying earlier about affordability. Affordability is still a major challenge for first-time homebuyers, and especially those buyers of color. The combination of rising interest rates and high home prices has really left homeownership out of reach. And data from the National Association of Hispanic Real Estate Professionals found that Latino homeownership increased about 48.4% in 2021. That is the highest level since the mid 2000s.

But again, the two major reasons why Latinos are disproportionately impacted when it comes to home ownership is, first, they are largely a first-time home buyer population, and secondly, the wealth gap. Latinos don't have enough money for a down payment, Rachelle.

RACHELLE AKUFFO: So then let's talk solutions then. What's actually being done to help some of these potential homeowners?

DANI ROMERO: Bank of America just rolled out a program to really help these first-time homebuyers. And the program is geared-- excuse me-- toward these first-time homebuyers in neighborhoods like Charlotte, Detroit, Dallas, Los Angeles, Miami. And applicant eligibility is actually based on timely payments. So that would be rent, auto insurance payments, as well as utility bills.

But Gary Acosta, an industry expert that I spoke with, he says that, sure, this is a great step in the right direction. But again, it doesn't really address the broader issue when it comes to inventory and as well the affordability issue, Rachelle.

RACHELLE AKUFFO: Indeed. Of course, the housing market still tight right now. A big thank you there, Dani Romero.