The total value of homes in majority-Hispanic neighborhoods increased 4.2 percent year-over-year to $2 trillion in 2024, according to a new report from Redfin. Neighborhoods in which a majority of homeowners are Black, Asian or white — or where there is no racial majority — all saw total home values grow faster.
The total value of homes in majority-white neighborhoods grew fastest in 2024, rising 5.4 percent to $40.4 trillion. The growth rate was essentially the same in majority-Black and majority-Asian neighborhoods: They experienced a 5.3 percent increase to $1.5 trillion, and 5.2 percent increase to $1.4 trillion, respectively. The total value of homes in mixed neighborhoods grew 4.7 percent to $2.4 trillion.
Home values are growing slower in Hispanic neighborhoods because many are in the Sun Belt, especially Texas and Florida, according to Redfin. In those states, home prices have stalled over the past year, due to an increase in supply following the pandemic-driven building boom.
In comparison, home prices are growing fastest in the Northeast and Midwest — areas where majority-white neighborhoods are more prevalent.
The total value of homes in Hispanic neighborhoods is growing, and at a pace not far behind that of other neighborhood types. But slower growth in home values — or even declining home values, in certain areas — can have an outsized impact for Hispanic families, according to Redfin.
Redfin Economic Research Lead Chen Zhao said that’s because a larger share of Hispanic households’ net worth tends to be tied to real estate.
Real estate makes up 61.6 percent of Hispanic households’ net worth, compared to just 27.4 percent for white households. Real estate makes up 44.1 percent of Black households’ net worth and 39.5 percent of “other” households (a group which includes Asian households).
“Hispanic homeowners have experienced higher highs and lower lows during the real estate market’s wild ups and downs over the past 20 years,” Zhao said. “Hispanic home values fell furthest following the global financial crisis in 2008 and they rose the most at the peak of the pandemic homebuying spree in 2021. With a higher share of their net worth tied to real estate, market fluctuations matter more to Hispanic families and can impact how much they can afford to spend or borrow. It also means that when Hispanic home values grow slower, or fall, the wealth gap between white and Hispanic families increases.”
The average value of individual homes in majority-Hispanic neighborhoods rose 3.4 percent to $395,000 — again slowest among the five groups in this analysis.
Like aggregate home values, the slower growth for average home values is attributable to softening Sun Belt markets where a large number of majority-Hispanic neighborhoods are located.
At the other end of the spectrum, the average home value in majority-Asian neighborhoods nationwide grew 4.8 percent to $1.13 million — fastest among the five groups. The significantly higher values can be partly attributed to location: many majority-Asian neighborhoods are in high-priced West Coast metros, including Los Angeles and San Francisco.
The average value of homes in majority-Black neighborhoods — which, along with majority-white neighborhoods, are generally more geographically dispersed — grew 4.7 percent year-over-year to $276,000. Majority-Black neighborhoods were the only group analyzed that saw an improved year-over-year growth figure in 2024 (after posting a 4.5 percent annual increase in 2023).
The average value of homes in majority-white neighborhoods grew 4.7 percent to $511,000 last year, while homes in mixed neighborhoods grew 3.8 percent to an average value of $559,000.
This is based on an analysis of Redfin home-value data from Dec. 31, 2024, in census tracts where more than 50 percent of owner-occupied homes were owned by Black, Hispanic, Asian or white homeowners. Where no race owned more than 50 percent of the homes, the area was defined as “mixed.”