More Asian Americans own homes now than ever before
February 20, 2024
A new analysis by the National Association of Realtors (NAR) revealed an increase in homeownership rates among minorities in the U.S. over the past year, with Asian Americans leading the homeownership gains.
The data: In the 2024 overview of Race and Home Buying in America, drawing from the U.S. Census Bureau data obtained from the American Community Survey in 2022, NAR researchers discovered that Asian household homeownership experienced the most significant increase, with 63.3% of Asian households becoming homeowners. Over the past decade, Asian Americans also witnessed the most substantial surge in homeownership, experiencing a 6.1% increase, equivalent to nearly 1.5 million more Asian American homeowners.
Notably, Hispanic household homeownership reached an all-time high at 51.1%, while Black household homeownership had a comparatively smaller increase, reaching 44.1%.
Fastest-growing homeownership: According to Jamie Tian, the president of the Asian American Real Estate Association of America, AAPI communities are experiencing the fastest-growing homeownership rates nationally. These groups often exhibit strong indicators such as good income, employment, education and higher credit scores. Many families within these communities live in multi-generational households, pooling resources to save for their own homes, with parents sometimes using home equity to assist extended family members in purchasing homes.
The significant gap: However, there is still a significant gap in homeownership rates compared to white Americans. Efforts are reportedly underway to educate Asian American homebuyers on the importance of building credit, as the cultural inclination often leans towards cash transactions rather than credit reliance.
Additionally, there are underserved communities within the AAPI population, particularly among Native Hawaiian and Pacific Islanders, who tend to have lower income and homeownership rates compared to other Asian subgroups.
Growth in homeownership: According to researchers, racial and ethnic groups approaching the median age of homebuyers (previously found to be age 38 for Asian homeowners) are likely to experience substantial growth in homeownership. Over the next five years, an estimated 775,000 Asian households, 1.5 million Black households and 2.2 million Hispanic households are expected to reach the median home buying age.
Boosting homeownership rates: Acquiring and subsequently selling a first home, often to upgrade to another property, plays a crucial role in boosting homeownership rates for entire communities. Addressing issues that artificially hinder homeownership rates is seen as a collective benefit, as increased homeownership benefits diverse populations and contributes to overall community growth.
Share this Article
Share this Article
