Homeownership is a big part of the “American Dream” for Asian Americans, according to a new report from realtor.com®, which coincides with Asian American & Pacific Islander Heritage Month. Their presence in the real estate market has been rebounding sharply after having decreased during the early stages of the pandemic.
Homeownership rates for Asian Americans were at 61.2% in the fourth quarter of 2021. Home sales have grown the most among millennial and female Asian Americans, outpacing their older or male counterparts, according to realtor.com®’s research.
Asian Americans tend to have higher educational attainment and household income than other racial and ethnic groups. But even as their homeownership rates grow, they may be down from what they could be due to several barriers they face in the housing market. Language barriers in the buying process and the prevalence of multigenerational living—which often comes with higher housing costs—are among the biggest challenges faced by Asian American households, according to a recent study by CAPACD.
Early on during the pandemic, Asian American home buyers receded in real estate. But they have since rebounded in the housing market, even more so than other racial groups.
“One potential explanation for the strong rebound is that they have higher motivations to take advantage of the historically low mortgage rates,” notes realtor.com® in its report. Asian American borrowers generally live in expensive metro areas which could result in higher average loan amounts than their peers. The record low mortgage rates last year may have prompted more Asian buyers to take advantage of the lower borrowing costs in their markets.
Source: “Asian American & Pacific Islander Heritage Month 2022,” realtor.com® (April 29, 2022)
