A survey by the Asian Real Estate Association of America (AREAA) reveals that Asian American homebuyers still face several barriers. According to AREAA, language and cultural barriers plague Asian American homebuyers the most. Vietnamese Americans in particular face more barriers than other Asian Americans.
Formed in 2002, the Asian Real Estate Association of America is a national trade association dedicated to promoting home ownership opportunities among Asian American communities.
The AREAA recently released the Asian American Homeownership study on Nov, 4 2004.
According to the study, Asian Americans are the second fastest growing racial group – yet their home ownership rate lags behind non-Hispanic whites by 10-21%. In addition, Asian Americans typically live in more overcrowded situations than the rest of the nation.
Intrestingly, Asian Americans have larger media household incomes but lower median per capita incomes than the national population. So generally Asian Americans with the same income as the general population live in areas with lower income per capita.
Vietnamese specifically have much lower median per capita than other Asian American populations.
In the study, Real Estate Professionals were asked to rank, in order, the top five barriers facing Asian American homebuyers. The top five were:
- Language/cultural barriers (not fluent in English), 17%
- Lack of knowledge of the home buying process, 15%
- Unverifiable income (not reported on 1040), 10%
- Lack of Credit (not reported to credit bureaus), 9%
- Trust (fear of being “ripped off”), 9%
The study concluded that Asian Americans lack proper homebuyer education programs and that Real Estate Professionals seek to gain a big market if they can cater to Asian Americans.