The number of Asian-headed households has grown by 83% over the past two decades, far outpacing the growth of Latinx, Black and White households. But this broad success masks major challenges to homeownership in the very diverse community. New Zillow is looking for reveals the reality that the Asian-American population – the smallest but fastest growing racial or ethnic group in the United States – faces when it comes to homeownership and income inequality. Asian Americans continue to face a difficult immigration environment, unequal access to opportunities and disparate educational backgrounds, the same housing barriers faced by many other racial and ethnic groups in the country.
The homeownership rate for Asian Americans rose six percentage points from 2000 to 2019 to 59%, surpassing near-stable or declining rates of other racial and ethnic groups and narrowing the gap with the white homeownership rate of 71%. At the same time, the median income of Asian American households is the highest of any racial or ethnic group in the United States, and the values of homes owned by Asians are 3.7% higher than the values. typical houses.
“Asian households are often viewed as successful economics: high incomes, homeownership rates and other positive indicators point to a relatively prosperous demographics. greatly, ”says Zillow economist Alexandra Lee. “As this population continues to grow, faster than any other racial or ethnic group, it will be crucial to recognize the disparities within the AAPI community to understand the opportunities and missed opportunities they experience in the housing market. “
The concentration of Asian households in more expensive coastal subways, such as New York, San Francisco, San Jose and Los Angeles, skews median incomes and the values of Asian-owned homes above the national average. However, Asian households are starting to move away from these high-cost urban centers for more affordable metros, which in turn may increase homeownership rates and lower the cost burden, a trend that is likely to accelerate with the Great reshuffle.
While most signs point to prosperity, income inequality is growing fastest among Asian Americans and the distribution of income among Asian households is currently the most unequal in the country. For example, in nearly half of the top 50 metropolitan areas in the United States, typical Asian household income and Asian household poverty rates are higher than the metropolitan median, a juxtaposed truth illustrating the reality of the diverse economic situation. .
Income and homeownership rates among Asian households vary widely across ethnic regions. East and Southeast Asians have the highest homeownership rates of over 60%, and median household incomes approaching $ 80,000, compared to the national median of $ 62,187 . However, Pacific Islander homeownership rates are more in line with Black and Latinx rates, standing at around 43% with a median household income of $ 65,000.
South Asians (including Indians, Pakistanis, Bangladeshis, Nepalese and Sri Lankans) have by far the highest incomes of any other regional group over $ 110,000. However, despite high income levels, South Asians have relatively low home ownership rates of 55%.
When ethnic regions are further broken down, greater disparities exist. Taiwanese have the highest homeownership rate at 69%, followed closely by Vietnamese (66%) and Japanese (65%). Most of them are East Asian groups, but other East Asian groups have the lowest homeownership rates – only 30% of Mongol-Americans are owners of their homes.
The various motivations for immigration within the Asian community can help explain the diversity of economic situations. A large majority of Asian-headed households were foreign-born (81%), and many ethnic Asians are more likely to move to the United States for employment opportunities, around 21% compared to 14% of all immigrants. On the other hand, a smaller proportion of Asian immigrants are refugees, which could translate into relatively higher levels of poverty and lower incomes once in the United States.