Landmark Research Details Latino Homeownership Crisis
Homeownership Top-Tier Priority for State’s Fastest Growing Ethnic Group; 4 Million Homes Needed to Meet Demand in Coming Decades
Tuesday, October 9, 2007
SACRAMENTO – Latino homeownership in California trails the nation, but what is a crisis now may become a catastrophe in the future if trends continue. Today, the California Building Industry Association (CBIA) and the California Homebuilding Foundation (CHF) unveiled the results of a groundbreaking research project detailing the problem and providing insight on the attitudes and priorities of Latino Californians.
“Latino Californians understand the importance of homeownership to their families and their long-term economic prosperity,” CBIA President & CEO Robert Rivinius said. “However, homeownership is out of reach for a majority, and the trend will lead to a crisis in the future. California will grow by over 14 million people by 2030, and nearly 80 percent will be Latino. To meet the demand, California must produce 4 million homes and apartments. Right now, we’re not even close.”
Currently, California’s homeownership rate ranks 49th out of America’s 50 states. America’s Latino homeownership rate is 48 percent, but California’s is just 44 percent. CBIA and CHF’s research combines an economic study of Latino homeownership conducted by CBIA Chief Economist Alan Nevin and a landmark survey of Latino Californians conducted by Democratic pollster David Binder.
The poll, which included 957 Latino Californians, found that the overwhelming majority of non-home owning Latinos desperately want to own a home for their families, but feel like they cannot afford to do so. Currently, California’s median home price is $588,970. Other findings include:
- Latino Californians are committed supporters of the environment, but believe the process must be streamlined to balance environmental protection and increased production of well-planned housing.
- Latinos overwhelmingly believe that homebuilder/homebuyer government fees are too high and should be capped or lowered to increase affordability. They would rather see government spread the cost of infrastructure across the entire population, as opposed to just homebuilders and new homebuyers.
- Latino Californians strongly support targeted investment by government to provide opportunities for homeownership for moderate and low-income families, although they do not support inclusionary zoning. They would rather see redevelopment funding invested wisely to deliver the American Dream.
“This research represents the foundation upon which a renewed commitment to homeownership can be achieved. Homeownership is a top tier issue for Latino Californians and they believe that government must do more to promote and encourage the American Dream. California homebuilders stand ready to help find solutions so that Latino Californians and all residents can benefit from homeownership,” Rivinius said.
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The California Building Industry Association is a statewide trade association representing more than 7,000 businesses - homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. A recent study determined that homebuilding generates approximately $60 billion a year to the California economy and creates an estimated 526,000 jobs statewide. More information is available on the Association's Web site, www.cbia.org.
