This Hispanic Heritage Month we are sharing how New Mexico could become the first state to close the racial wealth gap for Hispanic families and the data behind what that really means. Plus, we‘re sharing a Q&A with our Chief Operating Officer, Elena Gonzales, and some recipes for this month specially curated by the Homewise team!
The racial wealth gap measures the difference between the average assets held by white households and the average assets held by households of other races and ethnicities. Today, in the US, the typical Hispanic household has less than one-fifth the wealth of the typical white household. Households of color have lower median incomes than white households, are less likely than white households to benefit from intergenerational wealth transfers (i.e. inheritances and financial gifts from family), and are less likely than white households to own the homes they live in. The racial wealth gap is the result of numerous factors, most of which are rooted in our nation’s history of both overt and systemic racism.
In the mid-20th century federal policies like redlining fostered segregation and deprived families of color from building wealth through homeownership. While such policies are no longer legal, their impacts persist because household wealth is passed from one generation to the next. Factors that contribute to income disparities, including differences in access to high-performing public schools and higher education, also enable the racial wealth gap to persist.
Given that homeownership is the primary way that middle-class households build wealth, racial differences in homeownership rates, while not solely responsible for the wealth gap, contribute greatly to its size and persistence. In New Mexico, 72% of white households are homeowners compared to 63% of non-white households. This 9% average homeownership gap is significantly lower than in many other parts of the US. The Hispanic homeownership gap in New Mexico is 5.3%—one of the country’s lowest. This means that by enabling 10,000 more Hispanic households to become homeowners we could close the homeownership gap between white and Hispanic New Mexicans.
So, let’s get to work! We’ve removed barriers to homeownership by offering low down payments (as low as 2% in most cases), stacking funds from multiple assistance programs, making closing costs part of our loans, and removing monthly mortgage insurance.
All you need to do is help us to spread the word about our services. If you want to take it a step further, you can share the link to our pre-application with your friends and family on social media.
Closing the racial wealth gap requires fearless leaders in our communities who work tirelessly to make positive change like our Chief Operating Officer, Elena Gonzales. She is a native New Mexican who has fiercely advocated for underserved populations and dedicated over 30 years of her life to making homeownership affordable in New Mexico. We recently sat down with her to learn more about her journey.
What is something unique about working with a predominantly Hispanic population like New Mexico?
The strong desire to own a home and the pride of ownership is so strong in the Hispanic community, that it serves as an inspiration and reminder that we all want and deserve a stable, safe, affordable place to live and put down roots. I love that my culture is very family-oriented, and a home is where everyone gathers, cooks, laughs, and makes memories together.
What is the most significant challenge that you have helped Homewise overcome?
I have worked really hard to ensure that Homewise is flexible enough in its operations and lending in order to help more individuals and families get into homeownership. I have dedicated a lot of time to overcome the challenge of affordability by raising the bar and the priority of increasing access to deeper down payment subsidies.
How does your own identity as a Hispanic woman help you to better serve your community?
I am proud of my life’s work and the work of Homewise to ensure that we address the gap in homeownership and wealth for Hispanics in relation to our White counterparts. I love fighting the good fight to ensure equal rights and overall fairness. Being a Hispanic woman, I have a great perspective on how to help the underserved and make sure others have a seat at the table to affect change in our community.
Want a career that makes a positive impact in your community? Head over to our blog for Elena’s advice and read her full story!
Whether you are hosting your friends and family or simply want to try a new recipe that you’ve never heard of before, we’ve got you covered. 58.7% of our employees at Homewise are Hispanic, but 100% of us love home cooked meals, so we’ve compiled our favorite Hispanic recipes on our blog for you to try this month!