Historically, most Latinos do not yet have the advantage or benefit of generational wealth. Many of our parents came to this country and sacrificed everything for a better life and future for their families. This includes starting over in a new country and integrating into a new culture with different traditions and social lifestyles. This arrival, in many cases with almost nothing, is the beginning of a wealth gap that we now could close.
Our generation gets to be the one that makes a significant contribution to closing the wealth gap. We get to be the ones who are becoming financially literate, scaling our businesses and investing our money in real wealth-building opportunities. We get to continue our parents’ American dream by closing the wealth gap.
Studies show that the median wealth for white families is five times higher than that of Latino families. This is despite Latinos’ having an annual economic output of $2.8 trillion, representing over 16% of the U.S. GDP. Over the last decade, Latinos have accounted for over half of the nation’s population growth and over 80% of labor force growth. These facts show the presence and potential we have in our nation and the way we are significantly contributing to the economy. Yet the wealth gap persists.
I personally know there are different ways to invest money, but I have found a trend in wealth building through real estate. Latino homeowners have 28 times the wealth compared to Latino renters and are projected to make up 70% of new homeowners over the next 20 years. According to the National Association of Hispanic Real Estate Professionals’ State of Hispanic Wealth Report, among the surveyed members, “three-quarters (76.8 percent) of NAHREP members have a net worth of at least $150,000, more than four times the median net worth of Latinos in the U.S., and 27.9 percent have a net worth of at least $1 million.” This says a lot about the power of relationship capital, real estate and an organization I am so proud to be a part of, NAHREP.
Here are some solutions to the problem that many of my colleagues and I are working on:
Invest in Latino financial education.
Help Latino small businesses scale.
Educate on building wealth through real estate and investment diversification.
We all have a unique opportunity to help Latinos close the wealth gap and take our people to the next level — to not only participate in homeownership for the American dream, but also create generational wealth for a better future.
What a beautiful time to be Latino in America.
Nuria Rivera is the 2023 president of the National Association of Hispanic Real Estate Professionals.
The National Association of Hispanic Real Estate Professionals® is the voice for Hispanic Real Estate® and proud champions of homeownership for the Hispanic community. The organization’s stated role is to help more Hispanic families achieve the American Dream in a sustainable way that empowers them for generations to come.
NAHREP’s mission statement is to be a “purpose-driven organization that is propelled by a passionate combination of entrepreneurial spirit, cultural heritage and the advocacy of its members.”
Its mission is to advance sustainable Hispanic homeownership by:
Educating and empowering the real estate professionals who serve Hispanic homebuyers and sellers.
Advocating for public policy that supports the trade association’s mission.
Facilitating relationships among industry stakeholders, real estate practitioners and other housing industry profession