Overview of Hispanic Wealth
Being Hispanic has its perks; the close family, friends that we pretend are family, the food, the music, and the drama. But being Hispanic comes with its own set of challenges captured by the Hispanic Wealth Project.
First, Hispanics tend to hold illiquid assets such as Real Estate and stakes in businesses. According to eh Hispanic Wealth Project 2021 State of Hispanic Wealth Report the on average Latino household wealth is composed mainly by Home Equity (33%), Business Equity (14%), and Retirement Accounts (15%). This means that Hispanics have very little liquidity or cash on hand since so much of their assets is concentrated on assets that cannot be easily converted to cash. This means that Latinos are a driving force behind real estate and they are the engine of business growth despite their restricted access to capital.
Second, Hispanics build most of their wealth through entrepreneurship, being self-employed, and being heavily concentrated in the services industry and businesses that have been heavily hit by the most current economic downturn but with really good recovering prospect.
Finally, Hispanic families have a lot of catch up to do in income and in wealth given their income and wealth are still behind to those of their white counterparts. Median Household wealth is still behind where it should be despite having increased a lot since 2010. We definitely have our work cut out for ourselves.