STATE OF ASIA AMERICA - areaa.org · Design: Jazz Miranda Howard Shen. 3 The dream of owning a home...

STATE OF ASIA AMERICA2017-18

RE/MAX, LLCFreddie Mac

presented by

2

presented by

Foreword.........................................................................

15 Year Anniversary and FHA.........................................

Editors Notes....................................................................

About AREAA....................................................................

Policy Accomplishments in 2017....................................

Focus in 2018...................................................................

People..............................................................................

Languages........................................................................

Education.........................................................................

Income and Employment................................................

Homeownership..............................................................

International Buyer Data.................................................

Global Investment Outlook..............................................

Canada.............................................................................

AAPI Women.....................................................................

Obstacles and Opportunities...........................................

3

4

5

6

8

9

10

14

15

17

21

24

27

28

30

33

Editor: Scott BermanResearch: Scott Berman

Design: Jazz Miranda Howard Shen

3

The dream of owning a home isn’t limited by heritage, ethnicity or nationality. It’s an aspiration shared by diverse groups of people all over the world. The benefits of home ownership are universal, and RE/MAX agents in over 100 countries and territories help more people experience those benefits almost every day.

In that same global spirit, RE/MAX is proud to support the Asian Real Estate Association of America and the 2017 State of Asia America report.

This report is packed with fascinating insights on the Asian American and Pacific Islander communities. The material has tremendous breadth – covering demographics, educational stats, employment data, economic trends and much more. The insights would provide great value to any serious real estate agent.

After all, the more you know about the needs, challenges and opportunities of your clients or customers, the better you’re able to serve them.

And that’s what our industry is all about.

Freddie Mac is committed to turning dreams of homeownership into realities, strengthening communities, and promoting business growth across the housing industry. This is at the core of our mission. We’re proud to partner with members of the housing ecosystem— lenders, loan officers, real estate professionals, housing finance agencies, housing counselors and community organizations to help us lead the industry forward.

We support research and insight that connects our customers to the next wave of homebuyers and helps them make more informed decisions to grow their business. Changing demographics, growing consumer expectations and the evolving economic landscape are urging us to grow and adapt. Organizations such as AREAA reflect our mission of increasing homeownership in diverse communities. This report is just one of the many ways that they bring this mission to life.

The annual State of Asia America Report provides a detailed picture of the Asian American and Pacific Islander community. The information therein is intended to be a valuable resource for businesses that seek to connect with this community, and we are proud to be a part of that goal.

FO

RE

WO

RD

Mike ReaganSenior Vice PresidentRE/MAX

Danny GardnerSenior Vice President of Single-Family Affordable Lending and Access to CreditFreddieMac

4

2018 marks two very important anniversaries for AREAA and the AAPI

community. The first being this is our 15th year as an organization, a

tremendous accomplishment that I’m sure at our conception many may

have found hard to believe we’d get here! Over the last decade and a

half, our members and leaders have fought with incredible passion and

dedication to increase sustainable homeownership in the AAPI community

and empower those who serve this dynamic community. I could not be

more proud of what we have been able to accomplish so far, or more

excited about what’s yet in store for all of us.

2018 is also an incredibly important milestone for the United States – it is

the 50th anniversary of the landmark Fair Housing Act of 1968. This act

has allowed generations of people of color in this country to purchase

a home by outlawing discrimination in housing. However, many AAPI

continue to report instances of discrimination in housing, and despite

AAPI being typically well qualified for home loans, the homeownership

rate in our community still lags behind the national average. So while

we recognize and applaud the progress made in the last 50 years, we

understand that we still have some ways to go for equal and fair housing.

One way to help promote equality and ensure protection is simple: gather

data. That is the goal of this report – to give policy makers and business

leaders the information and tools needed to create effective policies

that have real impact. Within these pages you will find an abundance

of resources and information to give you a comprehensive, albeit still

somewhat incomplete, snapshot of the AAPI community and some of the

issues we face.

I want to thank you for taking interest in this report, and if you want more

information about AREAA and how we help the AAPI community, please

visit our website at www.areaa.org.

Thank you,

HIS

TO

RIC

MIL

ES

TO

NE

S F

OR

AR

EA

A

AN

D F

AIR

HO

US

ING

Randy Char2018 AREAA President

5

THE DATA

Finding consistent, accurate, and up to date statistics about

Asian Americans and Pacific Islanders (referred to in the report

as AAPI) is difficult, to say the least. You may find throughout this

report that certain figures seemingly contradict others (especially

on population). This is due to the fact that some statistics rely

on data from, for example, the 2010 Census while others may

use the Census’ 2015 estimates. Sometimes the data separated

Asian Americans from Pacific Islanders. Sometimes the only data

available was from 2012, while other times I was able to find data

from this year. Throughout the report I have tried to make sure that

I used the most current statistics whenever possible, and marked

when I was unable to. One of our main goals with this report was

to compile as complete and accurate a picture of the community

today as possible. Perhaps more than anything else, this report

highlights the importance and need for better and more complete

data about the AAPI population in the United States.

ED

ITO

RS

NO

TE

S

6

ABOUT AREAA

Years old average age

Immigrants

Years experience in real estate or banking industry

Real estate is not their first career

Has at least a 4-year college degree

Income earned by the typical member in 2015

from all real estateor real-estaterelated

activities

Membership representsa diverse range of

ethnicities and races,with a vast majorityidentifying as AAPI.

Likely the PRIMARY BUTNOT SOLE EARNER

for the household

Typical householdincome

$111,538

$156,250

51

14

YEAR IMMIGRATED TO THE UNITED STATES

1950 – 1959

1960 – 1969

1970 – 1979

1980 – 1989

1990 – 1999

2000 – 2010

2011 or later

1%

8%

27%

32%

20%

10%

3%

49% MALE

51% FEMALE

74%

74%

38%INCOME & EDUCATION

7

• Aloha Aloha• Atlanta Metro• Austin• Boise• Boston• Brooklyn• Central Florida• Central New Jersey• Central Valley• Dallas/Fort Worth• DC Metro• Greater Chicago• Greater Denver

• Greater East Bay• Greater Los Angeles• Greater Miami• Greater Phoenix• Greater Sacramento• Greater Seattle• Greater Tampa Bay• Greater Toronto• Houston• Inland Empire• Las Vegas• New York East• New York Manhattan

• Northern New Jersey• Orange County• Portland• San Antonio• San Diego• San Fernando Valley• SF Peninsula• Silicon Valley• South Bay• Tri-County• Twin-Cities• Vancouver

Founded in 2003, the Asian Real Estate Association of America (AREAA) is a nonprofit professional tradeorganization dedicatedto promoting sustainable homeownership opportunities in Asian American communities by creating a powerful national voice for housing and real estateprofessionals that serve this dynamic market.

Help us in our fightto increase AAPIhomeownership andempower those who serve this dynamic market.

With 39 chapters acrossthe US and Canada, plus a National Chapter, it is easy to get involved with an AREAA chapter near you.

To connect with a localchapter, or find out whichone you should join, visitwww.areaa.org or callthe National Office at619-795-7873.

MISSION ESTATEMENT

LOCAL CHAPTERS

Greater Seattle

Portland

Greater East BayGreater Sacramento

San Francisco PeninsulaSilicon Valley

Dallas/Fort Worth

HoustonAustin

San Antonio

Greater Tampa Bay

Atlanta Metro

Northern New JerseyCentral New Jersey

D.C. Metro

Boston

Greater Miami

Central Florida

BrooklynNew York EastNew York Manhattan

Inland EmpireSouth Bay

San Fernando Valley/Santa ClaritaTri-County

Greater Los AngelesCentral ValleyCA Orange County

Las Vegas

Greater Phoenix

Aloha

Greater Denver

Greater Seattle

Twin Cities

Greater Chicago

San Diego

8

POLICY ACCOMPLISHMENTS IN 2017

AREAA was part of a successful advocacy effort to remove

the so-called “1% Rule” that was enacted by the FHA.

This rule required lenders using FHA loans to assume a

debt repayment of at least 1% on all outstanding student

loans, regardless of whether the loans were in deferment

or forbearance status – meaning that no payments were

actually being made, and despite the fact the typical

student loan monthly payment is actually only 0.5%

People who are granted these statuses on their loan are

typically those who wish to pursue advanced degrees or

must complete an apprenticeship period upon entering

their field (such as lawyers or doctors).

AAPI pursue post-graduate degrees, and highly

specialized fields requiring apprenticeships at much

higher levels than the general population. In a recent

survey by the National Financial Capability Survey, 25%

of AAPIs over the age of 25 said their student loans were

negatively impacting their ability to purchase a home.

In early 2017, the FHA announced their decision to

remove this guideline, allowing lenders to use their

judgement when considering how to score a person’s

debt repayment.

Last year, Fannie Mae and Freddie Mac published

a proposed redesigned Uniform Residential Loan

Application (URLA) along with a corresponding Uniform

Loan Application Dataset (ULAD). Part of the change was

the addition of a Preferred Language Data Field (PLDF),

which would allow applicants to input what language

they would prefer to receive financial documentation.

AREAA was at the forefront of many organizations that

saw the incredible opportunity presented here, as there

had not been a proposed redesign on these forms in years.

The idea was to get a better idea on what languages new

mortgage applicants were speaking in the hopes of being

able to provide more in-language services. Given that

nearly 80% of AAPI speak a language other than English

at home, and 74% have said they prefer “in-language”

materials, we made this one of our policy priorities in 2017.

By the end of the year, the PLDF was included on the

redesign despite some objections, and now the government

and lenders alike will have access to more accurate and

complete data as to what languages applicants in their

markets speak, and would like to receive services in.

There is still no guarantee of this in-language service, but

getting data is an important first step.

To see more about AREAA’s policies to help improve AAPI

homeownership, please visit www.areaa.org/policy

REMOVAL OF 1% RULE

LANGUAGE ACCESS

A deferment or forbearance on a student loan allows you to temporarily stop making your federal student loan payments or to temporarily reduce the amount you pay.

9

FO

CU

S O

N 2

018

AREAA advocates for bringing the credit scoring system into

the 21st century, by allowing lenders to responsibly account for

different cultural and lifestyle backgrounds.

Access to credit is fundamental to being able to qualify for a

home loan, yet many AAPIs lack a substantial enough history,

or have no credit history at all, due to coming from cultural

backgrounds that do not favor taking on debt. By taking

into account common sense criteria such as rent or utility

payments, which are currently not counted toward a person’s

credit score, hundreds of thousands of AAPI and millions of

Americans (especially millennials) would be considered loan-

worthy without having to sacrifice the safe standards in lending

created in the wake of the housing crash of 2007-2008.

Despite our success last year in advocating for the inclusion

of a Preferred Language Data Field on the redesigned URLA

form, our work is not over. AREAA continues to push for greater

access to in-language documents and services in the home-

buying process.

2018 marks the 50th anniversary of the landmark

Fair Housing Act of 1968. This law allowed

generations of AAPI to achieve the American

Dream of homeownership and an opportunity to

build wealth for their families.

While we have made great strides over the last

five decades in regards to AAPI homeownership,

we know that the fight is not yet over. Despite

AAPI typically having high levels of income and

education, high credit scores (when they can

be scored), and low Loan-to-Value and Debt-to-

Income ratios, AAPI homeownership still lags

behind the national average by nearly 7% and

behind non-Hispanic whites by almost 20%.

AAPI also report higher levels of discrimination

than other groups, and are shown 15% fewer

available homes that white Americans.

The Fair Housing Act was critical for jump starting

AAPI homeownership in the late 1960’s, and the

principals it put into law are still essential to

making sure we don’t go backwards.

ALTERNATIVE CREDIT

LANGUAGE ACCESS

ENSHRINING FAIR HOUSING

10

The AAPI population is the fastest growing demographic in the United

States, both in terms of natural born citizens and immigrants. For years

just a few cities, New York, Los Angeles, and San Francisco, have

dominated in terms of population density leading them to be called the

Gateway Cities, but that is changing. Since 2000, every state, excluding

Hawaii (which already has an AAPI majority), has experienced at least

30% growth in their AAPI population.

PEOPLE

POPULATION AND DEMOGRAPHICS

22.5 MILLION (2016 ESTIMATE)

6.9% TOTAL US POPULATION

7%

INC

RE

AS

E F

RO

M

LA

ST

YE

AR

72%GROWTH FROM 2000-2015

FASTEST OF ANY DEMOGRAPHIC

HISPANIC NEXT FASTEST AT 60%

BY 2055, AAPI WILL BE THE NATION’S LARGEST IMMIGRANT GROUP ACCOUNTING FOR 38% OF ALL US IMMIGRANTS.

ETHNIC GROUP POPULATIONS

CHINESE

INIDAN

FILIPINO

VIETNAMESE

KOREAN

JAPANESE

4.8M

4M

3.9M

2M

1.8M

1.4M

Source :https://www.census.gov/prod/cen2010/briefs/c2010br-11.pdf

Source: http://www.pewresearch.org/fact-tank/2017/09/08/key-facts-about-asian-americans/


11

Despite a slight dip from 2000-2010, the West still has by far the largest share of the overall AAPI population in that time. The South saw the largest gains.

Since 2000, the South has had the fastest growth in their AAPI populations, followed by the Midwest, Northeast, and the West

AAPI ARE YOUNGER THAN THE AVERAGE AMERICAN

AAPI MEDIAN AGE 34.0 YEARS OLD

US MEDIAN AGE 37.8 YEARS OLD

ARE UNDER 18 YEARS24.6%

92%

Only 27% of Japanese Americans, among some of the earliest Asian immigrants to the US, are foreign born while…

of all Bhutanese Americans were born outside the US

OF ALL AAPI ARE FOREIGN BORN

ABOVE THE AGE OF 18 ARE FOREIGN BORN

59% 73%

DISTRIBUTION

45%

West Coast

23%

South

20% Northeast

12% Midwest



Sour

ce :h

ttps:/

/ww

w.ce

nsus

.gov

/pro

d/ce

n201

0/br

iefs

/c20

10br

-11.

pdf


12

PERCENT CHANGE IN AAPI POPULATION, 2000-2010

PERCENT CHANGE IN AAPI POPULATION, 2009-2014

Sout

hSo

uth

Mid

wes

tM

idw

est

Nor

thea

stN

orth

east

Wes

tW

est

69.2%

33%

47.5%

29%

44.8%

26%

36.3%

21%

Excluding Hawaii, where AAPI make up 56% of the population, the states with the largest shares of their population being AAPI are…

Top Total AAPI Population, State (2016 estimates; combining Asian and Native Hawaiian/Pacific Islander columns)

California

New Jersey

Nevada

Washington

California

New York

Texas

Hawaii

New Jersey

16%

10%

10%

10%

6,966,611

1,968,869

1,605,811

1,194,969

965,712

STATE

STATE

POPULATION

POPULATION

Source: https://www.census.gov/prod/cen2010/briefs/c2010br-11.pdf

Source: http://www.nielsen.com/us/en/insights/news/2016/asian-americans-are-expanding-their-footprint-and-making-an-impact.html


Source: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=b-kmk

13

Top 5 Fastest Growing AAPI Populations, State (2000-2012)

Top Total Asian American Population as Percent of Total Population, Metros (Excluding Honolulu, HI and Pacific Islanders)

Top Metro Destinations for Asian Immigrants 2009-2014 Top Total AAPI Population, County

(2016 estimates; combining Asian and Native Hawaiian/Pacific Islander columns)

Nevada

Arizona

North Carolina

North Dakota

Georgia

New York-Newark-Jersey City, NY-NJ-PA

Los Angeles-Long Beach-Anaheim, CA

San Francisco-Oakland-Hayward, CA

Washington-Arlington-Alexandria, DC-VA-MD

San Jose-Sunnyvale-Santa Clara, CA

283,000

206,000

117,000

89,000

86,000

Los Angeles County, CA

Honolulu County, HI

Santa Clara County, CA

Orange County, CA

Queens County, NY

122.55%

103.9%

89.56%

86.85%

85.60%

1,759,596

854,043

771,232

741,459

668,263

STATE

STATE

STATE

POPULATION

POPULATION

POPULATION

Sour

ce: U

S C

ensu

s Bur

eau

Source: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk

Source: https://statisticalatlas.com/United-States/Race-and-Ethnicity#figure/metro-area

Source: http://www.nielsen.com/us/en/insights/news/2016/asian-americans-are-expand-ing-their-footprint-and-making-an-impact.html

San

Fran

cisc

o, C

A -

33.3

%

San

Jose

, CA

2

3.6

%

Los

Ang

eles

, CA

- 14

.9%

Sacr

amen

to, C

A -

12.2

%

Seat

tle, W

A -

11.6

%

14

LANGUAGES

Source: https://cdn.americanprogress.org/wp-content/uploads/2014/04/AA-PI-LanguageAccess1.pdf

TOP ASIAN LANGUAGES SPOKEN IN THE US

Hindi – 0.81 million

Vietnamese – 1.5 million

Chinese – 3.4 million(both Mandarin and Cantonese)

Korean – 1.1 million

Tagalog - 1.7 million(including Filipino)

OF AAPI SPEAK A LANGUAGE OTHER THAN ENGLISH AT HOME

77%

35% of the AAPI is considered Limited English Proficient (LEP)

4% do not speak English “at all”

12% do not speak English “not well”

19% speak English “well, but not very well”

20% of AAPI households are considered “linguistically isolated”, meaning no one in the household 14 years or older speaks English “very well”

ONLY 9% OF NATIVE BORN AAPI ARE CONSIDERED LEP

47% OF FOREIGN BORN ARE CONSIDERED LEP

15

AAPI tend to be highly educated, with education attainment

rates higher than that of any other demographic group.

However, as is typically the case when researching AAPI

statistics, there is a wide chasm between those at the top

and bottom.

EDUCATION

EDUCATION STATISTICS

73% of Asian Americans (excluding Pacific Islanders) between 18-24 years old have completed at least some college, compared to the national average of 56%

52% of Asian Americans (excluding Pacific Islanders) over the age of 25 have completed a bachelor’s degree program or higher, compared to a national average of just 30%

73%

56%

Asi

an

Am

eric

ans

Nat

iona

l A

vera

ge

52%30%

Asi

an

Am

eric

ans

Nat

iona

l A

vera

ge

Percent of 25 years or older with Bachelor’s Degree or Higher, by Ethnicity

INDIANKOREANCHINESE (EXCLUDING TAIWAN)

JAPANESEFILIPINO

73%54%52%49%48%

Percent of Bachelor’s Degrees Awarded to US Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study

Percent of Master’s Degrees Awarded to Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study

Percent of Doctoral Degrees Awarded to Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study

STEM

Business

Health Professions

30% (15%)

21% (23%)

13% (13%)

Business

Health Professions

Education

HEALTH PROFESSIONS

LEGAL PROFESSIONS OR STUDIES

ENGINEERING

33% (32%)

15% (18%)

10% (23%)

60% (38%)

19% (42%)

4% (2%)

Sour

ce: h

ttps:/

/nce

s.ed.

gov/

pubs

2016

/201

6007

.pdf

16

STUDENT AID INTERNATIONAL STUDENT DATA

Top Public US Universities for AAPI Enrollment (total number of students enrolled)

Student debt is an issue for millions of young Americans, and AAPI are no different. A recent report by the National Financial Capability Survey found that 25% of AAPIs over the age of 25 said that their student debt was a major obstacle to them buying a home.

Asia continued to dominate enrollment of international students in the United States, representing over half of all international students in the country. In fact, the top 3 and 6 of the top 10 countries of origin for international students were Asian

of Asian Americans had to receive a federal student loan for their college education, for an average amount of $9,790

of Pacific Islanders for an average amount of $11,100

of Asian Americans received a federal grant for an average amount of $12,120

of Pacific Islanders for an average amount of $12,350

UC BerkeleyRutgers UniversitySan Francisco State UniversityCal State University, FullertonThe University of Texas at Austin

51%

38%

63%

67%

TOP 5 COUNTRIES OF ORIGIN

TOP FIELDS OF STUDY

China

India

South Korea

Saudi Arabia

Canada

EngineeringBusiness and ManagementMath and Computer SciencesSocial Sciences Physical and Life Sciences

350,755

186,267

58,663

52,611

27,065

Source: https://www.collegexpress.com/lists/list/colleges-with-the-largest-enrollment-of-asian-students/2362/

Source: https://nces.ed.gov/pubs2016/2016007.pdf

Source: https://www.statista.com/statistics/295583/share-of-international-stu-dents-in-the-us-by-country-of-origin/

Source: https://www.statista.com/statistics/237704/fields-of-study-with-the-most-international-students-in-the-united-states/

In 2012

LOANS

GRANTS

17

HOUSEHOLD INCOME LEVELS

MEDIAN USUAL WEEKLY EARNINGS OF FULL-TIME WAGE AND SALARY WORKERS, 3Q 2017

MEDIAN YEARLY EARNINGS, FULL-TIME WORKER AGE 25-34 (MILLENNIALS)

MEDIAN AAPI HOUSEHOLD INCOME BY REGION / TOTAL POPULATION MEDIAN

INCOME AND EMPLOYMENT

ON AVERAGE, AAPI HAVE HIGHER INCOMES THAN THE GENERAL POPULATION

Median Household Income - $87,000

High – Indian American - $103,821

Bangladeshi - $49,515

Northeast - $109,200 / $95,100West - $96,100 / $87,400Midwest - $90,700 / $66,800South - $84,800 / $69,100

$1,010

$887

$696

$655

Asian

White

Hispanic

African American

$50,400Asian (Excluding Pacific Islander)

$42,000White

$40,000National

$39,000

$33,300

$29,600

Pacific Islander

African American

Hispanic

Source: https://www.prudential.com/documents/corp/AsianAmerFinEx-perReport.pdf

Source: https://census.gov/newsroom/facts-for-features/2017/cb17-ff07.html

Source: Ibid


Source: https://www.bls.gov/news.release/pdf/wkyeng.pdf

Source: https://nces.ed.gov/pubs2016/2016007.pdf

18

EMPLOYMENT RATE

EMPLOYMENT INDUSTRIES AMONG THOSE 16 OR OLDER

SAVINGS, INVESTMENT, RETIREMENT

EMPLOYMENT STATS

33% of AAPI own individual stocks

AVERAGE ESTIMATED HOUSEHOLD FINANCIAL ASSETS

AAPI - $445,600US AVG - $385,50

49% say retirement is their number one financial priority

AAPI Average Expected Age of Retirement - 64.6

69% Do Not View Themselves as Well-Prepared to Make Financial Decisions

Less than 1 in 5 work with a Financial Advisor

43% are open to the idea

Asian alone

60.9%

White alone

58.9%

African American

alone

53.6%

Hispanic alone

61.1%

50.1%Management, Business, Science and Arts

9.4%Production, Transportation, and Material Moving

3.2%Natural Resources, Construction, and Maintenance

16.9%Service Occupation

20.4%Sales or Office


Source: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtm-l?src=CF

Source: Ibid

19

ECONOMIC IMPACT

PURCHASING POWER PURCHASING POWER BY ETHNICITY ($ / % OF TOTAL AAPI BUYING POWER)

In 2018, AAPI purchasing power will exceed $1 Trillion USD – an increase of 257% since the year 2000. By 2022, AAPI purchasing power will increase by another 33% to $1.3T USD.

At the current purchasing power level, AAPI are 17th largest economy in the world, just behind Mexico and just ahead of Turkey.

This extraordinary growth in buying power presents real opportunities for businesses who wish to court the AAPI market. However there are some unique factors when doing so as opposed to other demographics, namely that the people who make up the “AAPI” demographic do not have a shared language, cultural background, or even religion. Businesses will have to understand and contour their approach to each sub-group of the population as if it is a totally separate group than another. This makes niche marketing, depending on the population of each group in your local market, perhaps the best strategy for effectively reaching new AAPI consumers.

Indian

Chinese (excluding Taiwan)

Filipino

Korean

Vietnamese

$266B / 27%

$231B / 23.4%

$147B / 14.92%

$81B / 8.2%

$71B / 7.2%

Source: Humphries, J. M. (2017, June). The Multicultural Economy 2017 (Rep.). Retrieved December, 2017, from Selig Center for Economic Growth, University of Georgia website: http://www.terry.uga.edu/about/centers-institutes/selig

Source: Ibid

20

TOP STATES BY GROWTH OF AAPI BUYING POWER, 2010-2017

WHERE AAPI SPEND MORE

South DakotaNorth DakotaTexasVermontIndiana

102.3%94.7%89.4%

89%88.7%

AAPI BUSINESSES

Dining out

Housing

Education

Clothing

Public Transportation

AAPI owned businesses increased 24% from 2007-2012, to 1.9 million

Far outpacing total US firm growth of just 3%

Generating $700B USD in revenue Hawaii was the only state in 2012 in which the majority (51.5 percent) of all firms were Asian-owned. California ranked second with 17.0 percent.

TOP STATES

TOP STATES BY AAPI SHARE OF TOTAL BUYING POWER

California

New York

Texas

New Jersey

Illinois - $39B

Hawaii

California

New Jersey

Washington

Nevada

45.2%

16.4%

11.6%

9.9%

9.2%

$323B

$88B

$78B

$57B

$39BSource: Ibid

Source: Ibid

Source: Ibid

Source: Ibid

Source: Ibid

Source: Ibid

Source: Ibid

Source: https://census.gov/newsroom/facts-for-features/2017/cb17-ff07.html

Source: Humphries, J. M. (2017, June). The Multicultural Economy 2017 (Rep.). Retrieved Decem-ber, 2017, from Selig Center for Economic Growth, University of Georgia website: http://www.terry.uga.edu/about/centers-institutes/selig

21

3Q

20

17

2Q

20

17

4Q

20

17

1Q2

017

4Q

20

16

3Q

20

16

2Q

20

16

1Q2

016

HOMEOWNERSHIP

Since 2010, AAPI have been the most active minority participant in the mortgage market – both in terms of total number of applications and total amount originated.

High incomes and rates of education, high credit scores (when they can be scored), and low Loan-to-Value and Debt-to-Income ratios make AAPI typically well positioned to be homeowners.

However, AAPI homeownership still lags behind the national average by 6%, and behind non-Hispanic whites by nearly 15%.

There are many issues as to why this is, including credit scoring issues, language barriers, and a general lack of knowledge of the benefits of and process of homeownership.

But there are other, less tangible, realities such as the fact that AAPI tend to live in mulit-generational homes.

Nationwide, the number of AAPI homebuyers has increased 27% since 2001. The share of AAPI buyers in 21 of the top 25 metros has increased, and has exceeded 2005 levels in 10 – the greatest gains being made in San Francisco with 40% of the total share of buyers, and Los Angeles with 31%.

HOMEOWNERSHIP RATES (AS OF 4Q2017)

HISTORIC TABLE OF AAPI HOMEOWNERSHIP

US Average

Non-Hispanic White

AAPI

Hispanic

African American

64.2% (up 0.5% YoY)

72.7% (up 0.5% YoY)

58.2% (up 1.6% YoY)

46.6% (up 0.3% YoY)

42.1% (up 0.4% YoY)

58.2%

57.1%

56.5%

56.8%

56.6%

55.6%

55.7%

53.7%

+

+

+

+

+

+

Source: Courchane, M., Gailey, A., Darolia, R. (2014, July 22). “Borrowers from a Different Shore: Asian American Outcomes in the US Mortgage Market”.

Source: http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/harvard_jchs_state_of_the_na-tions_housing_2017.pdf

Source: https://www.census.gov/housing/hvs/files/currenthvspress.pdf

Source: https://www.census.gov/housing/hvs/files/currenthvspress.pdf

Highest

Lowest

Number $000's Number % of Total $000's % of Total

WHITE 2,790,387 687,354,033 2,033,253 72.9% 512,726,053 74.6%

AAPI 283,140 105,283,521 201,004 71.0% 73,686,636 70.0%

HISPANIC 275,409 53,933,203 170,412 61.9% 35,870,747 66.5%

AFRICAN AM. 161,357 28,964,802 83,630 51.8% 17,205,548 59.4%


WHITE 1,420,159 284,181,633 1,046,711 73.7% 211,067,108 74.3%

AAPI 43,157 11,892,189 29,838 69.1% 8,236,328 69.3%

HISPANIC 288,297 60,017,130 199,669 69.3% 41,854,019 69.7%

AFRICAN AM. 220,699 45,654,978 143,846 65.2% 29,784,668 65.2%

HMDA LOAN TYPE DATA BY RACE

CONVENTIONAL LOANS

FHA, FSA/RHS, AND VA

APPLICATIONS RECEIVED


LOANS ORIGINATED

LOANS ORIGINATED

The tables below show the amount of loans a group applied for, the total dollar value of those applications, how many of the loans were accepted, what percent that is of the total number, how much was financed, and what percent that is of the total amount.

Among minorities applying for Conventional Loans, AAPI applied for the most in terms of both total number and dollar value of any group. AAPI had their loans accepted and financed at rates higher than other minority

23


WHITE 6,143 3,802,505 4,359 71.0% 2,630,110 69.2%

AAPI 928 789,877 624 67.2% 561,289 71.1%

HISPANIC 915 437,557 551 60.2% 274,422 62.7%

AFRICAN AM. 415 152,165 214 51.6% 89,770 59.0%


WHITE 817,903 175,529,049 514,347 62.9% 111,795,186 63.7%

AAPI 103,779 29,504,840 64,720 62.4% 18,457,397 62.6%

HISPANIC 90,158 15,737,187 44,391 49.2% 8,118,148 51.6%

AFRICAN AM. 61,057 8,354,164 25,506 41.8% 3,688,493 44.2%

groups, but still behind whites.

AAPI were not very active in FHA, FHS/FHS, and VA loans, nor in Multi-Family mortgage markets, yet were still approved and financed at similar rates as Conventional loans.

AAPI were quite active again in the Non-Occupant mortgage market in terms of number of loans applied for and amount applied for, yet saw a dip in approval and finance rates.

MULTI-FAMILY

NON-OCCUPANT



LOANS ORIGINATED

LOANS ORIGINATED

24

AVERAGE HOME PRICE

MEDIAN

INTERNATIONAL BUYER DATA

For the 5th straight year in a row, China led all nations in total amount invested in US residential real estate. India was the only other Asian country in the top 5 of major sources of international buyers.

On the whole, foreign buyers purchased homes at a higher average and median price than US buyers, with China leading all nations in every price category. Detached single-family homes were the preferred type of property, and country of origin was significant factor in whether the buyer was “all cash” or applied for a mortgage.

Foreign buyers purchased $153.0 billion of residential property between April 2016 and March 2017, and increase of just over $50 billion from the previous 12-month period

Foreign buyers accounted for 10% of existing home sales during the period, up from 8% the year prior

Buyers who primarily reside outside the US (non-resident) accounted for 42% of all foreign buyers

Recent immigrants, visa-workers/students, and others who live in the US but are not citizens (resident) accounted for the other 58%

NON-RESIDENT VS. RESIDENT

PURCHASE PRICES

Foreign Buyers - $536,852

Foreign Buyers - $302,290

All US - $277,733

All US - $235,792

25

TOP COUNTRIES

Buyers from China, India, and Mexico were mostly Resident Buyers

Buyers from Canada and UK were primarily Non-Resident

California New Jersey Texas ArizonaFlorida

71%48%39%12%10%

OF THE TOP 5 STATES, % ORIGIN FROM ASIA/OCEANIA

FINANCING AMONG CHINESE AND INDIAN BUYERS

68% of Chinese buyers were All-Cash

While 79% Indian buyers used a mortgage loan from a US source

Total Value of Purchases

No. of Purchases Average Price Median Price

$31.7B 40,572 $781,801 $529,934

$19B 33,819 $560,844 $288,615

$9.5B 12,869 $741,856 $329,390

$9.3B 28,516 $326,826 $180,913

$7.5B 14,943 $522,440 $340,554

26

Primary Residence39% / 76%Residential Investment21% / 15%Both Vacation and Investment 18% / 2%For Use by Student8% / 4%

Detached Single-FamilyCondominiumTownhouse

Detached SingleFamily Townhouse Condominium

SuburbanUrbanSmall Town

61% / 75%31% / 15%

7% / 7%

64%17%12%

67% / 74% 14% / 17% 13% / 7%

INTENDED USE OF PROPERTY AMONG CHINESE / INDIAN BUYERS

PREFERRED LOCATION OF PROPERTY BY CHINESE / INDIAN

ALL FOREIGN BUYERS

CHINESE / INDIAN

TYPES OF PROPERTY

27

GLOBAL INVESTMENT OUTLOOK

OVERVIEW

Asian outbound capital investment in global real estate continued to surge in 2017, reaching approximately $45.2B USD in the first half of 2017 alone – an increase of 98% year over year.

Office space remained the top priority for investors, accounting for 44% of all committed capital in H1 2017

Despite increased restrictions on outbound investment, China continued to lead the way globally in capital investments with $25.6B USD invested globally, and has even surpassed the US as the top cross border investor worldwide.

Headline making deals became the norm, with transactions of over $250M USD representing 74% of committed investments in 2017, versus 56% in 2016.

The U.S. is still the top destination for Asian capital, with $21.9B USD invested in the first half of 2017.

In fact, 47.2% of all offshore acquisitions in the US originated from Asia, and 7 of the top 10 foreign buyers were based in Asia.

However, geographic diversity is becoming increasingly important to Asian investors, as the top 5 capital destinations represented just 31% of all investment, down from 54% in the H1 2016.

TYPES OF INVESTMENTS

TRENDS

Logistics

Residential

Hotel

Retail

Alternative Investments

34%

7%

7%

6%

2%

Top Countries through H1 2017

Top International Destinations for Asian Capital through H1 2017

CHINASINGAPOREHONG KONG SOUTH KOREA JAPAN

$25.6B USD$6.8B USD$6.6B USD$2.9B USD$1.3B USD

Source: https://www.cbre.us/about/media-center/asian-investment-in-global-real-es-tate-gains-momentum

Source: https://www.globalrealestateexperts.com/2017/11/chinese-outbound-invest-ment-in-us-real-estate/



Source: http://www.us.jll.com/united-states/en-us/Research/US-Investment-Outlook-Q2-2017-JLL.pdf?749f3c69-121b-41fa-85e3-392e74fe977a



Source: https://www.cbre.com/research-and-reports/Asia-Outbound-Investment-H1-2017-English


LONDON

NEW YORK

SHANGHAI SINGAPORE

HONG KONG

10%8%

5% 4% 4%

28

CANADA

Asian Canadians (the term Asian Canadian is used as a pan-continental term, which includes Pacific Islanders), represent the largest and fastest growing minority in Canada.

6.9% 15%

Canada has a significantly larger Asian population (15%) as percent of total than the US (6.9%)

Nearly 1 in 7 Canadians is of Asian background.

9%2001

15%2016

5,008,805 / 15% OF TOTAL CANADIAN POPULATION TOP ASIAN ETHNICITIES TOP ASIAN IMMIGRANT

POPULATIONS

ASIAN CANADIAN

POPULATION

GROWTH

VIETNAMESE 169,250PAKISTANI 215,560

837,135588,305

1,374,715668,565

1,769,195 915,285

PAKISTANI 202,255VIETNAMESE 240,615

FILIPIN0FILIPIN0

INDIANINDIAN

CHINESE (INC. HONG KONG AND TAIWAN)

CHINESE (INC. HONG KONG AND TAIWAN)Source: http://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dt-td/Rp-eng.cfm?LANG=E&APATH=3&DE-TAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&PID=110528&PRID=10&PTYPE=109445&S=0&SHOWALL=0&SUB=0&Temporal=2017&THEME=120&VID=0&VNAMEE=&VNAMEF= Source: http://www12.statcan.gc.ca/census-recensement/2016/dp-pd/hlt-fst/

imm/Table.cfm?Lang=E&T=21&Geo=01&SO=4D So

urce

: ht

tps:/

/ww

w.as

iapa

cific

.ca/

stat

istic

s/po

pula

tion/

popu

latio

n-20

16-c

en-

sus/

prop

ortio

n-to

tal-p

opul

atio

n-m

ajor

-asia

n-et

hnic

-gro

ups

29

915,285

BRITISH COLUMBIA

ALBERTA ONTARIO

22%

13.5% 16.1%

Proportion of Total Population of Asian Major Ethnic Groups, Province

INTERNATIONAL INVESTMENT IN CANADA

Asian investment in Canada isn’t as robust as in the US, but still represents a significant portion.

Top Regions of Origin by Total Share of Inbound Investment

Top Asian Countries of Origin, Inbound Investment (C$)

UNITED STATES

EUROPE

ASIA

47%

37%

9%

$33,617B

$29,101B

$2,811B

$1,461

CHINA

JAPAN

INDIA

SOUTH KOREA

Sour

ce:

http

s://w

ww.

asia

paci

fic.c

a/st

atist

ics/

popu

latio

n/po

pula

tion-

2016

-cen

-su

s/pr

opor

tion-

tota

l-pop

ulat

ion-

maj

or-a

sian-

ethn

ic-g

roup

s

Source: http://theasiafactor.ca/ca#im=5&im0=0&scrollTo=im&im5=1

30

AAPI WOMEN

AAPI women have become a dominant social and cultural force in the U.S. over the last decade. Between 2000-2015, AAPI women were the largest demographic of immigrants to the US – even larger than Hispanic males.

AAPI women are young, entrepreneurial, tech savvy, and drivers of economic growth. They have become one of the most important and influential consumers groups in the country, and with a rapidly growing population and increased economic wealth, AAPI women will continue to be a dominant force in American culture and business for years to come.

BY THE NUMBERS

POPULATION (2015 EST.) - 11,120,928

US BORN – 41%

FOREIGN BORN – 59%

BETWEEN 2005 AND 2015, THE US-BORN AAPI WOMEN’S POPULATION HAS INCREASED BY 60% TO 4,543,381

WHILE THE FOREIGN-BORN

POPULATION INCREASED BY 43%

TO 6,577,547

MORE THAN 75% OF AAPI WOMEN ARE US CITIZENS BY BIRTH OR NATURALIZATION

TOP COUNTRIES OF ANCESTRY AMONGST AAPI WOMEN (2015)

KOREA 7%

8%

14%

16%

20%

VIETNAMESE

FILIPINA

INDIAN

CHINA

http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2017-reports/nie sen-2017-asian-american-women-diverse-intelligence-series-report%20(2).pdf

31

IMMIGRATION

EDUCATION

INCOME AND EMPLOYMENT

LANGUAGE

TOP COUNTRIES OF ORIGIN FOR RECENT AAPI FEMALE IMMIGRANTS

MEDIAN AGE – 36

78% of US-born AAPI women are under the age of 34

70% of foreign born AAPI women are over 35

19% of total US immigrants to the US between 2010-2015 were Asian or Pacific Islander

AAPI women are the most well-educated of all US women

Is the average Household Income with an AAPI female earner

of AAPI women earn $50,000 or more annually

have a Graduate degree

Compared to $84,075 of non-Hispanic white households with a female earner

Compared to 17% of all women

23%

$105,604

19%

78% of AAPI women speak English either well, or very well

67% of AAPI females over the age of 5 speak a language other than English at home

IndiaChinaPhilippines

25% 23% 12%

Compared to 34% of all women

49% over the age of 25 have at least a bachelor’s degree

34% 49%

32

40% more than non-Hispanic white females

of AAPI women say it is their goal to make it to the top of their profession

46%

TOP INDUSTRIES

ENTREPRENEURSHIP

Health Care

Professional, Scientific, and Tech Services

Arts, Entertainment, and Recreation

AAPI

US

AAPI

US

44%

27%

54%

19%

AAPI women are the majority owner over nearly 750,000 businesses, with combined sales of over $136B USD.

AAPI women are majority or equal owners of 43% of all AAPI owned businesses

Between 2007-2012, AAPI female majority owned businesses grew at an exponentially faster rate in terms of both total number and sales figures than US females in general

18%

12%

12%

Growth of Total Number of Female Majority Owned Businesses (2007-2012)

Growth of Sales by Female Majority Owned Businesses (2007-2012)

http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2017-reports/nie sen-2017-asian-american-women-diverse-intelligence-series-report%20(2).pdf

FloridaTexasCaliforniaNew JerseyArizona

22%12%12%4%4%

Growth of Total Number of Female Majority Owned Businesses (2007-2012)

33

In a recent Gallup Poll, over 30% of AAPI surveyed reported facing incidents of workplace discrimination, the highest rate among any demographic group.

52% of AAPI employees reported experiencing some form of discrimination or bias outside of the workplace

And 36% reported that it is unacceptable at their current company to discuss experiences of bias based on race.

83% of AAPI say that they view a company more favorably when they are aware of the company responding to societal incidents of racial discrimination or bias.

According to a study by the U.S. Department of Housing and Urban Development, 1 in 5 AAPIs say they experienced discrimination in the home buying process.

Asian homebuyers who contact agents about recently advertised homes for sale learn about 15% fewer homes and are shown nearly 19% fewer than whites.

OVERVIEW

DISCRIMINATION

HOUSING WORKPLACE

19% Less15%Less

Source: https://obamawhitehouse.archives.gov/administration/eop/aapi/data/criti-cal-issues

Source: https://obamawhitehouse.archives.gov/administration/eop/aapi/data/critical-issues

Source: http://www.talentinnovation.org/_private/assets/EasingRacialTensions_Infographic-CTI.pdf

Source: http://www.talentinnovation.org/_private/assets/EasingRacialTensions_Infographic-CTI.pdf

Source: http://www.talentinnovation.org/_private/assets/EasingRacialTensions_Infographic-CTI.pdf Source: Housing Discrimination Against Racial and Ethnic Minorities 2012. (2013, June 1)

OBSTACLES AND OPPORTUNITIES

Asian Americans and Pacific Islanders face many of the same problems as the rest of the country. While we covered several of them throughout the report, there are still many other issues that poke holes in the “Model Minority Myth”. From gender pay gap and wealth imbalance, to more unique issues such as language access and credit reform (covered in our Policy Section at the beginning of the report) – there are many obstacles facing the AAPI community that must be addressed.

WHITES KNOWN TO

ASIAN

SHOWN TO

ASIAN

34

BAMBOO CEILING

While AAPI are well represented within the ranks of Fortune 500 and 1000 companies, there is a large disparity between their percentage of employment, and their percentage in of executive leadership positions.

AAPI represent only 2% of executive leadership positions in Fortune 500 companies despite aspiring to a top level position at a higher rate (64%) than any other group, and asking for raises (37%) and promotions (28%) at the same rate as Caucasians.

48% of AAPI say the biggest obstacle they face in rising through the ranks is conforming to Western leadership models.

AAPI are also 15% less likely than Caucasians to have a mentor at their place of employment, at 46% compared to 61%.

AAPI women face a larger gender wage gap than other minorities, earning 78.6% of what their male counterparts make.

$1,147 $902

GENDER WAGE GAP

Weekly earnings for Asian men vs. women

Best – Filipino – 96% of what a male makesWorst - Vietnamese – 71% of what a male makes

WEALTH IMBALANCE

AAPI WEEKLY WAGE INEQUALITY

Top 20% of AAPI control nearly half the total wealth

Bottom 60% hold just 15%

20% 60%

Top 10% $2,482

$438 Bottom 10%

Source: http://www.talentinnovation.org/_private/assets/CWLP_Asians-in-America-KeyFin-dings-CTI.pdf



Source: https://www.bls.gov/news.release/pdf/wkyeng.pdf

Source: http://www.nbcnews.com/feature/in-plain-sight/asian-american-social-class-more-compli-cated-data-n316616

35

HIGH AND LOW AMONG ETHNIC GROUPS

POVERTY

AAPI have a 17% poverty rate; US average 12%

Highest Poverty Rates

Lowest Poverty Rates

Asian alone – 13%

Pacific Islander alone – 21%

BURMESE

BHUTANESE

HMONG

FILIPINO

INDIAN

JAPANESE

35%

33.3%

28.3%

7.5%

7.5%

8.4%


GET TO KNOWAREAA

17,000 Members and Growing

39 Chapters Across US and Canada

51 Ethnicities Represented

26 Languages Spoken

2 National Conferences Per Year

National Policy Summit Each May

National Day of Community Service

Multiple Trade Missionsto Asia Each Year

Find Out What We’re Doing Nextareaa.org

Fine Homes & Luxury Properties | theremaxcollection.com

It’s not the destination, it’s the lifestyle. Experience a new way to luxury living, where your home is the ultimate escape. Gain access to extraordinary listings with a RE/MAX professional.

We are committed to this lifestyle. And committed to you.

Extraordinary Listings

© 2018 RE/MAX, LLC. Each office independently owned and operated. 18_240996

STATE OF ASIA AMERICA - areaa.org · Design: Jazz Miranda Howard Shen. 3 The dream of owning a home...

Documents

Transcript of STATE OF ASIA AMERICA - areaa.org · Design: Jazz Miranda Howard Shen. 3 The dream of owning a home...