Asian Americans represent a growing purchasing power force in the nation’s housing market, according to new data released by the Asian Real Estate Association of America (AREAA).
During the fourth quarter of 2018, Asian Americans represented the second highest level of homeownership rates by race at 58.1 percent, surpassed only by White households at 73.6 percent.
The AREAA report also cited Zillow data that found 58.1 percent of Asian-American households owned a home as of 2016 and this demographic’s families earned a median income of $82,627 that enabled them to afford homes worth an average of $541,505, thus giving them purchasing power to buy 85.2 percent of all listings nationwide.
AREEA also noted that the average loan amount for Asian-American buyers alone increased nearly 40 percent from 2004 and 2017, and this demographic takes out larger loan amounts compared to the average population. In 2017, average purchase loans by Asian Americans were just over $390,000 and average refinancing was at $368,000.
The report points out that Asian Americans are moving out of the traditional coastal communities to all areas of the U.S, particularly the South the Midwest.
"Since 2000, the South has experienced the greatest growth in AAPI populations. With 23% of all AAPI families living in the South, recent trends highlight further growth and expansion will continue in this region," states the report. "Southern real estate markets are especially attractive to AAPI families, with large properties available at competitive price points – AAPIs are relocating to the South like never before."
Tom Truong, AREEA’s 2019 president, noted that Asian Americans “have been relocating across the country, purchasing mortgage products and real estate at rates higher than other ethnic demographics … families are relocating into all regions of the country, including the Midwest and South, in search of homeownership.”
The reports is aimed at reall estate professionals. "Real estate professionals who take time to learn more about the unique needs and challenges of the AAPI community position themselves to provide better service and more value to customers" said Mike Reagan, senior vice president of RE/MAX.
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