When discussing housing inequality, we can’t leave anyone out of the conversation. Improving the housing gap means tightening it for all minorities: Blacks, Hispanics and Asians as well as others.
According to the report by the Asian Real Estate Association of America (AREAA), “Asian American, Native Hawaiian and Pacific Islander (AANHPI) homeownership rates…are far below equal earning non-Hispanic Whites and comparable to those of the Black and Hispanic communities.”
Asian groups moving into new areas
As a real estate agent in your local community, it is important to educate yourself on the demographic data that makes up your neighborhoods and potential clients. Especially as different ethnic groups migrate to new areas around the country, veteran agents could find themselves serving a whole new group of homeowners.
The report states that the AANHPI population increased by 40.5% in the midwest and 25.2% in southern states.
The migration of these communities has several causes including an expensive cost of living in major metropolitan areas and the continued rise in remote work. Washington, Florida and Virginia were among the top states to gain new AANHPI residents and many of these new residents are primed to purchase homes.
“The 1.88 million Vietnamese Americans have a 69.2% homeownership rate, the highest of any AANHPI group,” said the report.
However, not every ethnic group included in the AANHPI community is so ready for homeownership, especially in high-cost areas. The typical AANHPI strongholds — like California — see only 0.1%-2% of the AANHPI community as “mortgage ready.” That is a far cry from more affordable areas like Houston, Texas where more than 50% of AANHPI residents can afford to purchase a home.
Making the dream a reality for Asian homebuyers
“All but seven studied AANHPI ethnicities fell below the overall U.S. median family income, reported by the U.S. Census to be $70,784,” said the report. This statistic along with other ‘mortgage ready’ qualifications like a credit score of 661 or higher and a debt-to-income ratio below 25%, means that as real estate professionals, it is your duty to work harder to make the dream of homeownership a reality for AANHPI residents in your community.
Reach out to the mortgage lenders in your sphere of influence to see what first-time homebuyer programs they are offering. Include that information — along with any more affordable properties — in your online marketing, cold and warm contacts.
The untapped AANHPI market is primed to purchase homes in your community, and as real estate professionals you must use every tool in your box to work on tightening the homeownership gap.
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