State of Asia America 2019-2020
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The official publication of the Asian Real Estate Association of America STATE OF ASIA AMERICA 2019-2020 STATE OF ASIA AMERICA 2019-2020 AAPI QUICKFACTS TABLE OF CONTENTS STATE OF ASIA AMERICA Estimated AAPI Multiple-Race AAPI Asian Americans AAPI Limited-English Foreword 4 Population Population Eligible to Vote Proficiency (LEP) 2019 - 2020 Population From The President 5 19,041,252 23,605,508 11,128,000 5,597,043 Editor Sabrina Baranda Ruiz The Story of Asia America 6 Managing Editor +25% 5.8% +28% 7.2% Chinese, Tagalog, 53% Vanessa Shields Since Of the US Since Of the US Vietnamese, Korean About Asian American & Pacific Islanders 16 2010 Population 2010 Population Registered Art Director Top languages spoken by to Vote Jazz Miranda AAPI LEP speakers AAPI Mortgage-Readiness 18 Contributors Jenny Aramony, US Census Bureau The Asian American West 20 Asian American Asian American Asian American Melany De La Cruz-Viesca, Housing Rate Median Household Median House Asian American UCLA The Asian American Midwest 22 Income Value Demographics Jaya Dey, Freddie Mac The Asian American Northeast 24 57.6% $87,243 $445,000 Median The Asian American South 26 +41% +98% Age Than the National Than the National 37.3 Average Average Native Hawaiians & Pacific Islanders 28 Canadian Asians 29 Immigrant Pacific Islander Pacific Islander Median Pacific Islander Median 64% The AAPI Homebuyer Profile 30 Housing Rate Household Income Household Income AAPI Homeownership & Barriers 32 42.3% $61,911 $319,600 Letter from the Editor 34 -0.4% +39% Than the National Than the National Average Average 53% About AREAA 35 Female Sources 38 Pacific Islander Demographics presented by Median 37.3 Age 47% 50.6% 49.4% Male 8.8% Veteran Male Female Source: 2018 American Community Survey, Selected Population Profiles FOREWORD FROM THE PRESIDENT The goal of the Asian Real Estate This is only half the story. In 2018, Association of America’s (AREAA’s) millions of AAPIs were well-positioned annual State of Asia America report to buy homes, a potential for an is to provide a snapshot of what unprecedented upsurge in real estate homeownership looks like for Asian transactions and tens of millions of and Pacific Islanders (AAPIs) and dollars in potential loans. However, Mike Reagan Danny Gardner to serve as a resource for industry inadequate housing stock in the high Senior Vice President, Senior Vice President, Client Industry Relations and and Community Engagement, professionals, leaders, and key cost areas they wish to buy in and the Global Growth & Freddie Mac decisionmakers in better serving this length of time it will take for them to Development RE/MAX, LLC community. However, in light of the save enough for a down payment make COVID-19 pandemic, much of this it much more difficult to attain the goal data—mostly sourced from 2018—has of home ownership. undoubtedly changed. But what we James Huang hope this report can provide you is There is no simple solution to this 2020 AREAA President a snapshot of what homeownership, problem. Even when AAPIs have As a global network of more than 130,000 associates, For nearly 50 years, Freddie Mac has been making home potential, and opportunity looked like some of the highest median incomes our goal at RE/MAX is to help fulfill the dream of possible for millions of families, strengthening communities pre-crisis, as a way to benchmark of any group or apply with multiple homeownership for as many people as possible. and promoting business growth across the housing where we were, what we may have borrowers—often 3 or more—it is industry. In order to overcome some of the nation’s greatest lost, and chart out a way to move simply may not be enough. However, In doing this, we believe things are better when affordability and accessibility challenges, we rely on strong forward, together. until AAPIs begin to look at less everybody wins. This means being fair, doing the partnerships and collaborative efforts throughout the expensive areas or more affordable right thing and providing value to buyers and sellers housing ecosystem. We call this approach All For HomeSM, Despite being the fastest-growing housing is built, the housing shortage throughout the process. and it is reflected through collaboration and initiatives with segment of the U.S. population, the and the burden of large down organizations such as the Asian Real Estate Association of AAPI homeownership rate continues payments will continue to be one of the One of the most important parts of this is understanding America (AREAA) that build the communities that they serve. to lag behind the national average. largest hurdles for our community. and respecting diverse populations and cultures. To While the homeownership rate has maintained steady, the key to moving The barriers to homeownership, that end, we heartily support the Asian Real Estate Freddie Mac provides thought leadership, educational the needle on our rate is looking more unique to the AAPI community, parity Association of America and are pleased to present its resources and innovative business solutions to enable our closely at what stands in the way. loom large—from language barriers, 2020 State of Asia America Report, far and away the partners and clientsto reach more Americans who want to to antiquated credit scoring models most comprehensive compilation of Asian American and own homes. We know that this approach is vital in serving In aggregate, AAPI borrowers tend to and underwriting standards that do Pacific Islander (AAPI) real estate and economic data the Asian American and Pacific Islander (AAPI) community. be younger, have income, and higher not account for the self-employed, available today. AAPI communities are the fastest growing demographic credit scores (when they have it) than entrepreneurial AAPI buyer. The of Americans, representing a growing purchasing power overall population. Despite this, limited 2019-2020 State of Asia America The data is invaluable in highlighting the growing power force in the housing market. We’re proud to do our part in credit history is one of the top reasons Report, presented by RE/MAX and and influence of the fastest growing population in the helping the industry understand their unique trends and for AAPI application denial, despite Freddie Mac will provide AAPI housing United States. opportunities for success. having the lowest delinquency rate information, historical context, of any group. Almost a million AAPIs and disaggregated demographic, I encourage all real estate professionals to dive into We value our partnership with AREAA and are proud to be a are considered “mortgage weak” economic, and housing data for our this report to better position themselves to provide part of their annual State of Asia America Report. The data due to their “thin, clean credit files,” community, pre-COVID-19. We hope meaning they do not have bad credit this year’s report will be a resource in unmatched service and value to the AAPI Community. This in this report provides detailed insights that will advance but insufficient credit histories to educating the public on the contexts report raises the standard for all of us regardless of brand. industry perspectives on the future of AAPI homeownership, generate a credit score. This presents for as well as how we can remove the So read it, share it and most importantly use it. homebuyer education and solutions that will continue to a huge opportunity, not only in financial barriers facing our community and make a positive community impact. education, but also a market of potential thus open up access to housing for the homebuyers who are otherwise well- next generation of homebuyers as we positioned to buy a home. get back to business. 4 SPRING 2020 1763 1848 1865 1868 The Pioneers Sutters’s Mill, CA Chinese Railroad Workers Japanese Contract Laborers The first permanent Filipino The gold rush draws Chinese Chinese laborers are hired Japanese immigrants are settlement is established in immigrants to California. to build the Transcontinental recruited to work in Hawaii. Bartataria Bay, Louisiana. Railroad. The Great Māhele The Fourteenth Amendment Redistributes land and introduces Declares all persons born in private land ownership in Hawaii. the U.S. are citizens and are guaranteed equal protection THE of the law. STORY OF 1790 A STORY LIKE 1763 1868 ASIA NO OTHER 1790 1850 1866 Nationality Act The Kuleana Act The Civil Rights Act Restricts citizenship to Allows farming tenants to Declares all citizens shall have the “any alien, being a free apply for land. Too expensive same rights to own, occupy and white person.” for Native Hawaiians, it results transfer real estate. AMERICA in more foreign ownership of The story of Asia America is one of forgotten, Hawaiian land. unseen, and unspoken struggle. We have fought for the right to own land and property, to hold onto the lives and prosperity we've built, THE GREAT MĀHELE and to belong and be recognized, as both a A land redistribution scheme intended to protect land ownership for Hawaiians, the Great Māhele resulted in the benefit of foreign businessmen and interests. Only 8% diverse community of color and as Americans, a of Hawaiians received the 30% of land they were owed, and many Hawaiians found struggle that continues to this day. themselves without land or homes. This set the foundation for the Bayonet Constitution, which opened voting to thousands of non-citizens and disenfranchised thousands of Asian and Native Hawaiian voters, who could not meet the literacy, financial and land- ownership requirements needed to vote. Source: Hawaii1848 State Archives/Wikimedia Commons 6 SPRING 2020 1870 1882 1898 1903 1907 1917 Naturalization Act Chinese Exclusion Act Spanish-American War Korean Migrant Workers Gentleman’s Agreement Asiatic Barred Zone Act Explicitly extends naturalization Bans Chinese immigration and The Philippines and Guam are Korean immigrants are hired to Japan stops issuing passports for Bars immigration from Asia, to African Americans but not any naturalization.