South Carolina House
A home stands behind a real estate sign in a new development in York County, South Carolina LUCAS JACKSON/Reuters

Less than half of Latinos in the U.S. say they can easily afford their housing payments, a new study by Redfin found. These numbers correspond with a similar trend among minorities who increasingly report their struggles with affordability across the country.

Redfin, one of the biggest real estate companies in the U.S., conducted the study seeking to get a picture of the current state of the housing and renting experience among Americans. The responses were based on a survey with roughly 3,000 homeowners and renters, aiming at representing the nation's different demographics.

Overall, the survey found that half of U.S. renters and homeowners (49.9%) sometimes, regularly or greatly struggle to afford their housing payments.

"Housing has become so financially burdensome in America that some families can no longer afford other essentials, including food and medical care, and have been forced to make major sacrifices, work overtime and ask others for money so they can cover their monthly costs," said Redfin Economics Research Lead Chen Zhao.

When it comes to Hispanic and Latino respondents, 37.8% said they can easily afford their housing payments. This is a lower number compared to other minorities. For instance, 46.6% of Black respondents answered similarly to this question. As for Asian and Pacific Islanders, 47.7% said they could easily afford housing.

White people, on the other hand, remain as the group with the highest affordability rate, with 54.5% answering affirmatively.

Due to these affordability challenges, the report argues, Americans see themselves forced to make some sacrifices such as pressing pause on vacations and working overtime. These decisions are more present among people of color and younger generations.

Hispanic respondents were most likely (28.2%) to sell their belongings in order to afford housing costs. Meanwhile, Black respondents who struggle to afford housing were more likely (25.9%) to work extra in order to cover their monthly costs.

Using retirement funds is also a common way to attempt to cover housing costs. In fact, 13.6% of Hispanics use this tactic, according to Redfin.

For younger generations, these struggles are similar. For Gen Zers, their most common sacrifices were working extra hours, selling belongings and even skipping meals, all of which were clocked in at roughly 27%, according to the study. Skipping vacations was the top choice for baby boomers (42.8%), Gen Xers (36.8%) and millennials (31.3%) who struggle to afford housing.

These figures are a reflection of the current housing markets. Mortgage payments are near their all-time high due to rising prices and elevated mortgage rates.

The median U.S. home sale price is up about 5% from a year ago, and mortgage rates are hovering around 7%. The typical household earns roughly %30,000 less than it needs to afford the median-priced home, according to the real estate company.

But this report also comes amid an all-time high figure for Latino homeowners.

Some 3.2 million Latino households became homeowners between 2012 and 2022, an increase of 5.4 percentage points that clocked in at 51.2% overall, a report by the National Association of Realtors indicates.

"While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers," Jessica Lautz, NAR deputy chief economist and vice president of research said.

© 2024 Latin Times. All rights reserved. Do not reproduce without permission.