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Asian American Homeownership on the Rise Despite Challenges

The Asian American community is proving that strength isn't just in numbers, it's in community.

Over the last few years, the homeownership rate for the Asian American, Native Hawaiian, and Pacific Islander (AANHPI) population has been growing, according to U.S. Census Bureau data. It stood at 62.2% in the first quarter of 2024, up 5.3 percentage points since the first quarter of 2019.

The increase in Asian Americans owning their homes coincides with the achievements of different Asian communities. Some have gained higher-than-average education levels and incomes, providing the financial means to afford homeownership.

"There's a very strong cultural emphasis on just homeownership itself within many Asian communities," said Asian Real Estate Association of America (AREAA) National President Jamie Tian. "Owning a home is kind of seen as a key milestone in your life."

As the Asian American population continues to increase, their homeownership rate is expected to keep rising.

About 71% of Asian American adults said they are either on their way to achieving the American dream or have already done so, according to AREAA's 2024 State of Asia America.

"Achieving the American Dream of homeownership is really important," said Tian. "It's a way to provide stability and security for your future generations."

Why the Asian American community values homeownership

Deeply embedded cultural values around family and community growth are also responsible for driving much of this increase.

Older generations may save money they can later use to help their children buy their own homes.

"Family unity is very important among Asian families and home is where the family gathers," said Palo Alto-based real estate broker Linda Lee of Keller Williams.

The homeownership rate was much higher for Asian Americans than for Black Americans, at 45.7%, and Hispanic Americans, at 49.9% in the first quarter of 2024, according to the Census Bureau.

However, it was lower than the rate for white Americans, 74% of whom own their homes.

Asian Americans face homeownership barriers

Many barriers still exist for Asian American communities, particularly in lower-income households.

They still face a higher rate of discrimination in the mortgage industry than white Americans. This can be seen in recent bills, such as one that bars Chinese citizens from buying property in Florida.

Asian Americans also continue to be impacted by historical practices like redlining, which prevented them from purchasing homes in some communities. Redlining was outlawed in 1968 through the Fair Housing Act.

Asian American homeownership rates vary

The Asian American community is not a monolith. Homeownership rates vary across different community groups.

Vietnamese Americans had a 70% homeownership rate, the highest out of all the Asian American communities, according to the AREAA report. However, the Pacific Islander group of Marshallese had just a 6% homeownership rate.

These variations are influenced by a number of factors including location, how prevalent multigenerational living is, and how long each community has been in the U.S.

While the growing communities still face barriers to homeownership, it's clear that it is a significant part of their American Dream.

"That American Dream of homeownership is really why a lot of immigrants immigrate to the United States," said Tian. "Once you have a home of your own to call your own, it signifies a deeper-rooted connection to your home, to your new homeland."