Asian Americans expected to purchase more homes in the next decade

By 2024, there will be 33 percent more new minority homebuyers than non-Hispanic white homebuyers.

More so, it is expected that there will be 1.8 million more Asian households formed by then.

According to the Asian Real Estate Association of America’s 2015 report, The State of Asian America, the Asian American and Pacific Islander (AAPI) community applied for and received the largest share of purchase money mortgages of any minority group in terms of both number and monetary value in 2014, according to “Borrowers from a Different Shore: Asian American Outcomes in the US Mortgage Market.”

Additionally, Asian American households spent 19 percent more than the country’s general population in several categories, including housing.

In the years 2000-2010, the number of home purchase loans offered to APPI grew by 15 percent, which was quite similar to non-Hispanic reports.  Typically, for borrower characteristics, AAPI tend to have high credit scores, low debt-to-income ratios, low loan-to-value ratios and low APRs.

At the higher income levels, AAPI denial rates are identical from non-Hispanic whites. Yet, at the lower income levels, APPI struggle with higher rates of mortgage application and denial than any other ethnic or racial group.

However, the report noted that research by Freddie Mac showed the AAPI community is more likely to make large down payments, and typically do not have debt.

Additionally, AAPI are nearly one-third more to invest in secondary real estate properties. They are 80 percent more likely to use both college advantage tax-savings accounts and trust and estate planning services.

Eighty-eight percent of all new rental demand will come from minority communities. However, according to the repot, AAPI looking to rent who contact Realtors® about housing units find out about 10 percent fewer available properties. Additionally, they are shown nearly 7 percent fewer units than prospective white renters. Asian homebuyers who reach out to agents about homes for sale find out about 15 percent fewer available homes for sale and are shown nearly 19 percent fewer properties than whites.