BMO Survey: Affordability concerns challenge U.S. Latino homebuyers, but commitment remains strong

Despite higher interest rates and ongoing affordability challenges, Latino families across the U.S. are staying committed to their dream of homeownership. According to BMO’s latest Latino Real Financial Progress Index, owning a home remains one of the top financial goals for 68% of U.S. Latino respondents. However, affordability pressures are delaying action, not diminishing the dream. In fact, 70% of Latinos are postponing home purchases, choosing to wait – not walk away.  

Latino buyers are waiting strategically 

This long-term planning mindset is especially visible in key markets, where many Latino homebuyers are waiting until interest rates drop: 

• 80% in Colorado 

• 75% in California 

• 67% in Arizona  

• 60% in Chicago 

Still, 52% say that buying a home now feels financially out of reach. The delay, however, is more about planning than giving up, and many are taking proactive steps. To navigate affordability concerns, Latino buyers are leveraging multiple financial strategies: 

• 41% plan to use their 401 (k) to finance their first home  

• 48% say they would not have been able to buy a home without financial help from their families, rising to 60% among Gen Z Latinos.  

Despite these challenges, 59% of Latino consumers say they feel more financially secure today than they did a year ago. This confidence signals resilience and optimism as they continue working toward long-term financial goals. 

Latino buyers are also entering the housing market at a median age of 28 – two years younger than the national average. This highlights the importance of multigenerational strategies and early financial planning. 

“The data shows that for Latino families across the U.S., homeownership remains an important milestone of financial progress, stability and generational success. While the majority feel more financially secure than they did a year ago, they are still waiting for interest rates to decrease before making their first home purchase or refinancing. Financial institutions like BMO are here to help throughout the home buying journey, offering actionable guidance to help turn financial aspirations into progress.”

– Lizzy Diaz-Ortiz
Senior Manager, Latino Banking Segment, BMO