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58 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Addressing a Demographic Gap Why is homeownership among Hispanics growing at a slower pace in some pockets of the country? H ispanic homeownership is lagging behind non- Hispanic white home- ownership, according to a study from the Urban Institute. The study states that the gap is highest in the Northeast and smallest in the Southwest, how- ever, Hispanic populations are smallest in the Northeast. For example, New York City has the second-highest number of Hispanic households—almost 1.5 million—but they represent only 21% of total households. The Hispanic homeownership gap is notably larger in the Northeast than in other regions of the country. In Utah, for example, Latinos make up 14.2% of the state's popula- tion, according to 2018 U.S. Census Bureau data. That number is be- lieved to be increasing in 2019. The Daily Herald reports that in Utah County, and across the state, Latino populations are not spread evenly. Abraham Hernandez, Executive Director of Centro Hispano in Provo, Utah, states that Utah Latinos have been spreading out. "Latinos are moving further down south and going up north in the county to Eagle Mountain," Hernandez told The Daily Herald. "We're seeing a huge bloom of Latino populations in Eagle Mountain, to the point where we've actually had people request our services up there." "They're weighing their op- tions—do I buy a house, pay a little bit more, but at least I own my house, or do I pay a lot of rent, and maybe it's not kid- friendly, maybe it's not enough bedrooms," Hernandez said. "Particularly when you look at how Latino families are multi- generational homes. You have grandma living there, you have your parents, and obviously the kids, so they need a bigger space." Two Texas cities—Laredo and El Paso—have closed this gap. These cities are both majority- minority cities: 77.7% of El Paso's households and 93.9% of Laredo's households are Hispanic. Notably, both are also situated on the U.S.-Mexico border and, as such, are communities with sizeable im- migrant populations. In each city, roughly a quarter of the popula- tion is foreign-born. The Hispanic population is expected to make up more than half of all net new households in the United States over the next 25 years, and the Urban Institute study notes that some changes must be made to the financing industry to address the needs of these buyers. Hispanic people on average use more cash than credit when making purchases. A lack of credit history precludes those who might otherwise be mortgage-ready from qualifying for a loan. Back to School Here's how many homebuyers said they consider school districts a key factor. I t's back to school for many children in the U.S. And the quality of that school plays a large role for many prospective homebuyers, accord- ing to the National Association of Realtors (NAR). A new report from the NAR— "2019 Moving With Kids"—says 53% of buyers with children living at home under the age of 18 said the quality of school districts is an important factor when choosing their new homes. Additionally, 50% reported the convenience to schools played a role in their decision. Buyers with children, on average, purchased larger homes at 2,110-square-feet with four bedrooms, and two bathrooms. Families without chil- dren at home had houses that av- erage 1,800-square feet with three bedrooms, and two bathrooms. Despite the large size, home- owners with children said their homes being too small was the main reason they would look to sell, according to 25% of respon- dents. This is compared to the 11% of respondents from people without children who said their homes are too large. Those without children at home said the biggest reason they want to sell is to move closer to family at 18%. Another large reason for many homeowners with families that want to sell is job relocation, with 19% saying it was a contributing factor. Twelve percent of home- owners without children said job relocation was a main reason they moved. Zillow reported earlier this summer that 25% of prospective homebuyers with children go over budget when searching for a home. Zillow's report also revealed that 31.5% of parents with children were initially denied a mortgage, a large gap from 11.5% of parents without children. Two-thirds of buyers that have children under the age of 18 made sacrifices on their home search, including sacrificing a shorter commute (34.1%), a larger home (31.2%), and desired finishes (32.7%). "Having kids is a major de- stabilizer in life—their needs are constantly changing and seem- ingly impossible to anticipate. Combine all that uncertainty with a massive financial decision that inevitably requires tough tradeoffs among a limited set of options and has to be wrapped up in time to move before school starts and you've got one of the biggest challenges around," said Skylar Olsen, Director of Economic Research at Zillow. "As markets cool, parents will have more time to breathe and reflect on what tradeoffs they're willing to make. With interest rates back down, they'll be more able to lock in an affordable monthly payment that will last through college." The Hispanic population is expected to make up more than half of all net new households in the United States over the next 25 years.