You may think it strange to discuss the growth of Hispanic buying power as the United States is in the midst of one of the deepest economic downturns in recent history.  But when times were flush, a few oft-quoted reports came out about the expected increase in Hispanic wealth-accumulation and buying power.   The SeligCenter for Economic Growth’s The Multicultural Economy is a rich source of data.  To access the entire report, click here.  A key piece of information from the report finds that Hispanic buying power is projected to grow to $1.1 trillion by 2009 and $12.4 trillion by 2011.   United States residents may be buying less overall, and Latinos certainly have been hit hard by the sub-prime mortgage crisis, but with the surge in the Latino population, they will continue to buy goods and services.  Granted, most families are cutting back on purchases, but as the U.S. economy moves out of the recession, many marketing pros are counting on Latinos jumping back into the purchasing frame of mind.   A report from Experian Consumer Research indicates that Hispanics may be less affected by the recession due to certain cultural factors, including less reliance on credit for purchases and the pooling of resources among extended family.  And companies may be cutting their advertising budget and outreach to preserve jobs and keep their doors open, but Latinos are one demographic that should not be ignored.   This recession is too new to tell whether Hispanics have curtailed buying at the same rate as other ethnic groups, but article from the last recession in the early 21^st century showed that Hispanics were less affected by the downturn.  Regardless, savvy marketing pros will continue to tailor their message to the demographic that shows the most promise whether that message is in Spanish or in English with a Latino flair.

In the spring and summer of 2007, organizations working with immigrants made a huge campaign to encourage people to apply for citizenship for two reason: to beat the monumental fee increase in the end of July 2007 and to get America’s newest citizens ready in time for November 4th.  More than a million applied for naturalization in 2007 and another 480,000 in 2008 (Source: Cox News Service), making this the most multicultural election in history.

And despite the English Only proponents, states are beefing up the ranks of poll workers with language skills because of the Voting Rights Act.  This act requires that certain states and jurisdictions translate ballot materials into other languages and provide interpretation services in some cases.

Latinos typically lean toward blue, and judging from a survey by El Tiempo Latino, this year will be no different.  The survey found that of the 502 interviewed, 85.2% said they’d vote for Obama and the remaining 14.8% for McCain (Source in Spanish: El Tiempo Latino).  The National Post also found that Latinos are overwhelmingly in support of Obama, but with a ratio of 2 to 1. This article also states that Latinos have an affinity for Obama because his top three issues are those most important to Hispanics: the economy, the war in Iraq, and immigration reform.

But many asked after the debates: where is the dialogue on immigration?  Why aren’t they talking about it since it’s such a hot issue for those across the spectrum, especially when the Latino vote is so critical?

According to an article in the Houston Chronicle, the candidates indeed are talking about immigration.  Just not in English.  Both candidates have been airing Spanish-language ads speaking to the immigration issue so as to gain the crucial Latino vote without alienating the general public (i.e. non-Spanish speakers) about this highly contested topic.  While the article has a decidedly McCain slant to it, the overall question of why both candidates remain tight-lipped about immigration in English but are spending campaign ad dollars to sway the Latino vote is an interesting one.

As people in the United States of all socio-economic classes worry about financial problems, Latinos are disproportionately getting hit with foreclosures on their properties.  Why are Latinos losing their homes to foreclosure at a faster rate than other demographics?  The upsurge in subprime mortgages (mortgages with high interest rates and tenuous ethics meant specifically for those with bad credit history) is the main reason that Latinos are increasingly facing the threat of foreclosure. Whereas once Latinos with bad credit would have the option to either come up with cash or not purchase a property, subprime lenders began to target minorities with bad credit, knowing full-well that their customers would barely be able to make the payments.  Consumers, never thinking that they would be able to own a home, were lulled by the promises of these lenders.  A report by United for a Fair Economy called State of the Dream 2008: Foreclosed offers reasons for the damage, and suggestions for moving forward.    Why are Latinos so affected by the fallout from this lending nightmare?  Some of the reasons are: 

• Lack of understanding about the process to become a homeowner (nearly 4 in 5 are first-time homebuyers and don’t have the collective wisdom of family and friends to guide them).
• The tendency to go with people they know for assistance and if a predatory lender is the only one in the neighborhood, that’s the only recommendation they can get.
• The only choice often is to go with a subprime mortgage or not to buy at all.
• The lack of alternative measures of financial responsibility, such as wiring money to home countries monthly or lengthy histories of rental payments.
• Not having financial information explained in Spanish and not having real estate documents translated into Spanish.

By providing real estate consultations and financial advice in Spanish, real estate agencies and lenders can work to help Latinos avoid foreclosure in the future.   

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