Just over five weeks away from the presidential election, two items are poised to affect the outcome more than they ever have in history: the Housing Market and Hispanic Americans.
The Hispanic and Latinx community is among the largest demographic groups in the U.S., and is playing a significant role in the construction and housing industries… from both the supply and demand sides. Supply, in that Hispanics make up nearly one-third of the building labor force. And demand, in the need for affordable housing.
Hispanics are overrepresented in the construction industry — as they comprised 31.1% of construction employment — compared to 18.7% across all industries in 2022, according to the National Association of Home Builders Eye on Housing report published in June.
According to the UCLA Latino Policy & Politics Institute, the U.S. Latino population reached 62.5 million in 2021, accounting for 19% of the U.S. population. This is up from 13% in 2000.
Since then — Latinos have been the largest contributor to U.S. population growth — accounting for 54% of the growth. By 2060, the Latino population is projected to increase to 111.2 million, or 28% of the U.S. population. This is owing to natural population growth as well as immigration.
Latinos are also the youngest racial or ethnic demographic in the U.S., with a median age of 30.7 years… more than 10 years younger than non-Hispanics (41.1 years), according to the National Association of Hispanic Real Estate Professionals (NAHREP) 2023 Hispanic Homeownership Report.
Homeownership among Hispanic Americans is on the rise. NAHREP reported that in 2023, Hispanics’ homeownership rate reached 49.5%, with a net gain of 377,000 Hispanic owner-households from 2022. This was the largest increase in the homeownership rate across all racial or ethnic demographic groups… rising 0.8 percentage points YOY. Hispanics are forming households at a rapid rate as well. In 2023, Latinos saw a net gain of 450,000 new households and were responsible for 25.5% of overall U.S. household formation growth. This, coupled with the youth of the population segment, translates to increased demand for housing, as well as home improvement and renovation products.
Since this large and growing demographic group presents both great opportunity — and urgent need — it is important for the residential construction industry to reach out and connect with this community… from contractors to consumers.
A strategic approach includes a plan that details the unique elements to understand about this market and accounts for cultural nuances, from Spanish or bi-lingual marketing materials to addressing its specific needs. To be successful, outreach must be through traditional and digital channels, tailored media, and partnerships with trusted industry organizations that already have standing within the community.
Kleber & Associates believes that establishing trust and building credibility are the most crucial keys to any successful marketing plan. We offer an integrated approach to marketing and nurturing relationships with Hispanic-owned construction businesses, as well as strategies for how to address diversity in your building product brand. We invite you to download our updated white paper that details the market and provides strategic thinking about reaching this vital demographic.
