Report: R.I. Latino home ownership significantly less than for non-Latinos

HOME OWNERSHIP for Latinos in Rhode Island at 26 percent is significantly less than that for non-Latinos, which have a 64 percent rate, according to a new report from the Latino Policy Institute and HousingWorks RI. / COURTESY HOUSINGWORKS RI
HOME OWNERSHIP for Latinos in Rhode Island at 26 percent is significantly less than that for non-Latinos, which have a 64 percent rate, according to a new report from the Latino Policy Institute and HousingWorks RI. / COURTESY HOUSINGWORKS RI

PROVIDENCE – Home ownership for Latinos in Rhode Island is significantly less compared with non-Latinos, according to a new report from the Latino Policy Institute and HousingWorks RI.
The report showed that the homeownership rate for Latinos is 26 percent compared with 64 percent for non-Latinos, and that the majority of Latinos who have mortgages – 56 percent – tend to be cost-burdened, meaning 30 percent or more of their income is spent on housing costs. Thirty-five percent of non-Latinos are cost-burdened, according to the report.
“That doesn’t leave a lot of resources to be participating in the overall economy,” Anna Cano Morales, director of the Latino Policy Institute, said in a phone interview about the cost issues facing Latinos.
Nationally, the gap between the two groups is closer, as 45 percent of Latino households own their homes compared with 63 percent for non-Latinos, according to information from the agencies.
Cano Morales said research showed that Latinos in the Ocean State are not even applying to be considered for mortgages. And those who do own homes tend to be relatively young. They also have not been in their homes very long, less than 10 years, so they lack equity, which is needed in case of unexpected expenses, she said.

She said the statistics are concerning as Latinos are the fastest-growing ethnic group in Rhode Island.
“We need them to become more engaged in the housing market, to be able to save enough money to purchase their first home, or to build equity to pass down to the next generation. The first step is addressing the affordability gap facing so many Latino households so they can play an even larger role in Rhode Island’s economic future,” she said.
She said that the lack of Latinos buying homes has implications for the real estate market and economic development, as well as communities with aging populations.
“Who’s going to buy the homes in these neighborhoods?” Cano Morales said.
She said they hope to study this issue further this year.
HousingWorks RI said that from 2007 to 2013, the income needed to afford the median priced single-family home outpaced the household incomes of both Latino and non-Latino renters. It said that to afford a home in 2013 at the median price of $205,000, an income of $63,192 was needed.
The median renter household income for Latinos declined 16 percent from 2007 to 2013 (from $27,683 to $23,174) while the median renter household income for non-Latinos essentially remained the same ($31,682 to $31,436).
In 2013, the median Latino homeowner household income was $55,113, compared with non-Latinos at $79,596.
Jessica Cigna, research and policy director for HWRI, said that home mortgage applications for Latinos decreased 53 percent from 2007 to 2013, compared with 26 percent for non-Latinos.
“With such a large gap between household incomes and the incomes needed to afford to buy a home, it’s not surprising to see a decline in the number of Latinos applying for a home mortgage,” Cigna said.

Ninety percent of Latino households have a mortgage compared with 68 percent of non-Latino homeowners, the report said.
HousingWorks RI, a program in the division of university outreach and engagement at Roger Williams University, used data from the U.S. Census Bureau to come up with its findings.

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