We are excited to have Jeymy Gonzalez as our guest blogger today. Being a first generation Hispanic immigrant, she has personal experience with the challenges Hispanics may face during the real estate process and works to assist this community with guidance and education.
Last year Nielsen and the Association of Hispanic Advertising Agencies (AHAA) identified Upscale Latinos as the most influential segment since the Baby Boomers. Upscale Latinos are becoming a powerful population segment and have grown by more than two million since 2010.
“Recognizing the diversity within the Hispanic population in the U.S., Nielsen and AHAA embarked this year on a second study to further understand the behavior of upscale Latino households, what drives them toward upscale-luxury purchases and what drivers and detractors they share—or don’t share—with non-Hispanic upscale households.” Here are some important points that they found:
The number of Upscale Latinos with an annual income range from $50,000 to $100,000 is growing.
They account for 29% of Hispanic homes and more that 15 million Hispanics.
They spend about $500 billion each year, which represents 40 percent of the $1.3 trillion in Hispanic purchasing power.
At least 60 percent say they have strong ties to their Latino culture, and 30 to 40 percent voice a strong cultural duality.
According to “the upscale Latino 2.0” study by Nielsen/AHAA, this is the percent of upscale Hispanics that say within the next 12 months they will have sufficient resources to:
47% to pay rent/mortgage
39% to live in safe neighborhood/good public school
33% to pay off credit card debit
18% to qualify for a mortgage
One Powerful Segment, Three Different Mindsets
Nielsen and AHAA identified three distinct sub-mindsets with in this group and this is how they describe them:
Luxury Seekers (42%) are mostly drawn to high-end products for individual rewards and to feel good about themselves. Thirty-four percent of upscale non-Hispanics fall into this sub-segment, making them less likely than upscale Hispanics to be luxury seekers.
Sensible Seekers (40%) are pragmatic about their purchases and make high-end decisions when it makes sense. There is a greater distribution of upscale non-Hispanics in this sub-segment at 48 percent.
Social Seekers (18%) see high-end goods and services as timeless and classic; they seek recognition and social status. Upscale non-Hispanics also make up 18 percent of this sub-segment.
Yes, we are all Hispanic/Latinos but we don’t like the same things! You can notice a difference among the 3 distinct sub-groups. So understand the differences and for those working the Luxury market, remember 29% of the Hispanic homes are upscale Latinos.