The Asian Real Estate Association of America (AREAA), a national nonprofit trade organization, released its 2021 State of Asia America Report on June 30, showing the south has become an increasingly attractive choice for homeownership among members of the Asian community.
It has the highest Asian American & Pacific Islander (AAPI) homeownership rate in the nation.
The 38-page report, compiling data from over 14 sources, is a collaborative effort between AREAA, RE/MAX, and Freddie Mac. The report shows 50 percent of the AAPI community reside in the west, with approximately a third living in California. Of the 22 real estate markets studied nationally, AREAA found the AAPI community with a higher homeownership rate than the national average, in only 5 markets.
The highest homeownership rate among AAPI is at 65.4 percent for those living in the southern states. In contrast, they have the lowest overall average income compared to AAPI in the western, midwestern, and northeastern states.
Amy Kong, National President of AREAA, pointed out that the south is becoming increasingly popular among AAPI, enjoying the highest homeownership rate compared to those living in other regions of the United States.
Realtor.com Senior Economist George Ratiu said, “That, to me, is a sign of the times, in many respects.” Ratiu explains, “It’s not just confined to the Asian American community, but indicative of broader population migration. The South and Southeast, by and large, have attracted a lot of residents over the last two decades.”
Domestic and international companies have chosen to relocate to these areas. Ratiu explains, “Toyota North America, which was based in California, moved its headquarters to Texas. The implication is huge. It wasn’t just the company’s headquarters that moved.” He’s implying employees and their families relocate as corporations migrate south and eastward. He says this is a trend resulting from the significant economic development and employment growth in the South and the Southeast, with many other corporations following suit.
“The South and southeast markets have traditionally been a lot more affordable for someone living in California,” Ratiu said, ”a much lower price for a house, more spacious homes, and even the cost of living by and large tends to be cheaper.”
Business-friendly policies in the South have indeed benefitted many people who have moved to the region, according to Tim Hur, AREAA National Vice President. With year-over-year double-digit increases in residential real estate prices, spurred on by the strong surge in demand, new residents to the area are faced with the rising cost of living now affecting these sought-after areas.