As Asian Pacific American Heritage Month approaches, new research from realtor.com® spotlights Asian Americans’ unique barriers to achieving the dream of homeownership and associated struggles during the pandemic.
The report shows that the Asian American homeownership gap persists. As of Q4 2021, the share of Asian Americans who are homeowners (59.9%) continues to lag behind the national rate (65.5%) and the white rate (74.4%).
Additional key findings:
- Asian American buyers fell behind their peers at COVID’s onset: Asian American hate crimes in California—the state with their highest population—spiked 139% year-over-year from March-Sept. 2020 during COVID. At the same time, the community’s housing progress lagged behind, with their average Home Sales Index (HSI) dropping 8.1% from pre-COVID levels and 9.5% lower than non-Asians.
- But rebounded at a relatively faster pace: Asian buyers’ average HSI jumped to 30.8% over pre-COVID levels from Oct. 2020-Dec. 2021, at a 19.6% faster pace than their non-Asian peers.
- Especially among women and millennials within the community: On average from July 2020-December 2021, Asian American HSI among females (157) was 8% higher than males (145.5). During nearly the same time frame (Aug. 2020-Dec. 2021), Asian American HSI among millennials (159.1) was higher than that of Gen X index (148.9), Boomers (145.0) and the Silent generation (145.5).
- Furthermore, Asian millennial buyers recovered more quickly than their non-Asian peers: From Aug. 2020-Dec. 2021, the average millennial buyer HSI among Asian Americans (159.0) grew nearly 60% over the March 2019 baseline and outpaced non-Asians (144.4).
“Our analysis shows the Asian American homeownership gap persists, underscoring the significant racial disparities that still exist in real estate today,” said Danielle Hale, chief economist at realtor.com®. “Despite this community having some of the highest education and income levels in the country, many continue to face barriers. Homebuying trends since the onset of COVID do highlight some promising progress among Asian Americans, particularly those who fall into additional marginalized categories like women and younger age groups. However, these gains followed a more sluggish period for Asian buyers early in the pandemic, a time that coincided with an increased number of hate crimes against the community. These difficult events may have partially deterred some Asian buyers from pursuing homes in more affordable areas like smaller cities and suburbs.”
To read the full report, click here.