Asian Real Estate Association of America (AREAA) and the UCLA Asian American Studies Center recently released an in-depth study called "A New Path to Homeownership for Asian American Home Buyers."
The study showed an in-depth look at the fastest growing member of America's housing market - Asian Americans.
According to a press release, Asian Americans have witnessed the fastest growth in homeownership since 2000 of any population, and their income and credit profile suggests that this growth will continue into the future. During the last six yars, homeownership has risen from 52 percent to 60 percent.
Brian Montgomery, FHA Commissioner and Assistant Secretary for Housing, stated, "I commend AREAA for sponsoring this historic study regarding the unique homebuying challenges facing Asian Americans in this country. For FHA, this study highlights the need for additional product flexibility, such as that proposed in the Expanding Homeownership Act of 2006, to reach all segments of the Asian American homebuying market. We plan to work closely with AREAA to design and offer innovative and suitable insurance products to increase homeownership opportunities for Asian American families."
The study was sponsored by Freddie Mac, Bank of America and the National Association of Realtors.
In 2004, more than half of the Asian population lived in just three states: California (34 percent), New York (15 percent), and Hawaii (5 percent). Some of the study's other findings showed:
* Settlement patterns at the regional level show a greater number of Asian Americans moving to southern metropolitan areas such as: Asian Indians and Vietnamese in Dallas, Texas; Koreans and Vietnamese in Atlanta, Georgia, and Vietnamese in Houston, Texas.
* In 2004, Asian Pacific Islanders' homeownership increased significantly to 60 percent, but still lagged behind the homeownership rates of the national (69 percent) and non-Hispanic White (76 percent) populations.
* In 2002, homeownership rates for Asian and Pacific Islander (API) naturalized-citizen householders (70.3 percent) were higher than their native-born API householder counterparts (56.5 percent).
* In 2002, among the naturalized-citizen householders born in Asia, 81 percent of those who entered in 1974 or earlier were homeowners, compared with 66 percent for those who entered in 1975 or later.
"Studies like this one help the industry and the public gain a better understanding of the homeownership process in the Asian American community," said Dwight Robinson, senior vice president of Freddie Mac. "The knowledge gained from this study is a step toward helping the financial services industry learn how to better serve this important, growing market."
This will be a positive step in the right direction in empowering a larger number of Asian Americans toward achieving the American Dream of homeownership.
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