One of the fastest growing populations in the U.S. is Asian Americans along with Native Hawaiians and Pacific Islanders. The Census Bureau expects the population of this group to surpass 46 million in the U.S. by 2060. Many are first- or second-generation immigrants.
The homeownership rate for Asian Americans has been on the right track. In 2012, the rate for Asian Americans was at 57.2%, according to the National Association of Realtors. By 2022, that number had grown to 63.2%. That’s the second highest percentage behind only whites at 72.3%.
Still, this group faces challenges in the housing market, especially when you delve into the wide number of subgroups from Chinese to Asian Indians to Pacific Islanders. Jamie Tian, the president of Asian Real Estate Association of America (AREAA) spoke to Scotsman Guide about the obstacles including laws such as Florida’s Senate Bill 264, legislation that restricts land purchases from immigrants of several countries and that restricts any property purchases from any Chinese nationals. The law was on hold this summer while being appealed.
Why is it important to understand these communities beyond broad brush strokes?
One of AREAA’s major advocacy wins in the past was our “No Other” campaign in 2016. We actually petitioned the U.S. Census Bureau to create a separate category for Asian Americans because previously (in the Census’s quarterly housing report) they were put in this “Other” category. Having data about sub-groups helps you to advocate for them and better understand their cultural nuances and needs.
Why are mortgage application denial rates higher among Asian Americans than white Americans?
They’re denied at all income levels at a higher rate. One of the reasons is Asians don’t have a tendency in their home countries to borrow money. Even credit cards are a newer thing in a lot of Asian countries. They operate purely with cash. Lack of credit history, not necessarily negative credit history, is an issue.
The Uniform Residential Application Form is also a very complicated form and if you have language barriers it’s very difficult to navigate. If you don’t have a good lender and Realtor that’s helping you translate, it can be very difficult to provide all the proof that you need.
Neighborhood segregation for Asian-American communities is comparable to the Hispanic community. What problems does that cause?
Appraisal bias has been a huge issue. Sometimes you have an Asian neighborhood right next to a white neighborhood. The home values should be comparable, but somehow it doesn’t show up in the appraisals and the home sale prices.
You’re saying that Asian American homeowners are seeing instances of appraisal bias themselves?
Definitely. It may be because both Hispanic and Asian households are often multi-generational households. If they’re selling it like that, it may not look like some model homes on the market.
Then there are situations that you’ve read about where they hire an actor to be at the appraisal. They remove all the family pictures and then it appraises for a couple hundred thousand dollars more. The appraisal industry needs more training on ethics and stringent guidelines and also more severe punishments.
Why is your association concerned about bills across the U.S. that would limit property rights for Chinese nationals?
AREAA has recently participated in a lawsuit against the state of Florida for SB 264. This law greatly restricts people from China, Venezuela, Russia, Iran and several other countries from purchasing property in Florida. It’s a felony to sell to these immigrants.
However, it’s a Fair Housing Act violation to ask somebody what race they are when you receive a purchase offer. It’s very awkward in these states for sellers and agents to navigate. If you’re a seller, you may avoid selling your home to anyone who looks Asian or has an Asian sounding last name or even Spanish name.
Are you surprised that these laws are being introduced and passed?
I’m shocked. It’s reminiscent of the Chinese Exclusion Act from over a hundred years ago or the internment of Japanese Americans. I can’t believe we’ve come so far as a society, and this is happening in 2024.
Aren’t there limitations for Americans who wish to purchase property in China?
There are many countries that don’t allow foreigners to purchase property, but they are fair in that they don’t allow any foreigners to make these purchases. This is discriminatory because it is a list — it’s China, Russia, Iran, North Korea, Cuba, Venezuela and Syria. And the punishment is more severe for China than the other countries. It’s so specific to that group of immigrants, which is the definition of discrimination.
