Despite a median household income of $93,759, 35% higher than the national average, only 60.6% of Asian Americans are homeowners, below both the national rate of 65.6% and the non-Hispanic White rate of 73.8%. For Pacific Islanders, who have a median household income of $66,464, 1.1% higher than the national average, the homeownership rate falls to 41.1%.
These figures, shared in the 2021 AREAA State of Asia America Report in partnership with RE/MAX and Freddie Mac, help illustrate the continued barriers to homeownership for the fastest growing segment of the U.S. population.
“Even with factual evidence of greater income than the general population, our homeownership rate remains surprisingly low,” AREAA President Amy Kong said. “And the challenges we face grew substantially throughout the pandemic, including job losses as well as an immense increase in hate crimes and subsequent housing discrimination that are forcing so many to stay in their current communities rather than move to new and unfamiliar places.”
In the first quarter of 2021, the U.S. Department of Housing and Urban Development saw a 30% increase in complaints of housing discrimination, with approximately 10% of those complaints involving some aspect of connecting COVID-19 to the person’s ethnicity. Since the start of the pandemic, more than 2 million Asian American and Pacific Islander (AAPI) adults have experienced anti-Asian hate incidents, according to a 2021 survey by AAPI Data and SurveyMonkey.
“Education for real estate agents is key when it comes to increasing homeownership rates among diverse populations,” said Mike Reagan, RE/MAX Senior Vice President of Industry Relations and Global Growth & Development. “The numbers in the State of Asia America report demonstrate the need for more action to prevent discrimination among AAPI clients. It serves as a powerful resource for agents who seek to be allies in the fight for equality in housing.”
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The report also showcases where opportunities exist for AAPI homebuyers and sellers. The Southern region of the U.S. has the highest AAPI homeownership rate (65.4%). Of the states with the highest Asian population, Georgia led the nation with a 66.9% homeownership rate for the community, slightly above the national average and the state average for Georgia (64.1%).
AREAA also found that of 22 studied U.S. markets with a large percentage of AAPI populations, five markets saw the AAPI community with a higher homeownership rate than the national average: Riverside, California (71%), Washington, D.C. (69%), Miami (69%), Houston (69%) and Atlanta (67%).
Growing AAPI homeownership across the U.S. will require a targeted approach. AREAA continues to work to remove language barriers in the real estate process and is also pushing for alternative credit scores to be more widely accepted. Although many AAPI homebuyers have financial stability, they may be unable to qualify for a mortgage according to current credit score requirements.
“Many in the AAPI community have been culturally averse to credit but have good jobs and savings,” Kong said.
That’s where RE/MAX agents can step in to serve as a guide – whether it’s advocating for alternative credit, finding solutions to language barriers or serving as an ally in the fight against discrimination.
“In many ways the AAAPI population is thriving in the U.S. and more Asian Americans than ever are ready to become homeowners,” Reagan said. “By learning more about this demographic’s unique needs, RE/MAX agents can be better positioned to create an unmatched experience at every step in the real estate process.”
This is the fourth year RE/MAX has sponsored the AREAA State of Asia America Report. AREAA is one of seven RE/MAX strategic alliances working to increase homeownership for all, including the National Association of Real Estate Brokers, the LGBTQ+ Real Estate Alliance, the National Association of Hispanic Real Estate Professionals, Freddie Mac, the Real Estate Services Providers Council and the National Association of Realtors Diversity Committee.
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Written by STEPHANIE VISSCHER
