The tendency for Asian Americans to buy houses is not only fueled by their growing need for housing, but also their view of real estate as an attractive investment opportunity for their cash in hand.
Los Angeles, CA (PRWEB) September 04, 2014
Asians continue to lead other ethnic groups when it comes to investments. In fact, there are nearly 19 million Asian Americans nationwide, and they continue to be the fastest growing racial group in the United States. Recent studies have been exploring how Asian Americans, especially new immigrants, use their homes and businesses to leverage and grow wealth. As Realtor University and Asian Real Estate Association of America (AREAA) foresee, Asian Americans will be “a large source of future housing demand” based on their current homeownership rate of 55%, which is 10% behind that of the total population (65%) [1]. Aside from real estate, the motel industry is also a small yet steady piece of the U.S. economy that is dominated by Asian Americans.
According to a study released by the National Association of Home Builders (NAHB), Asian home buyers are the largest ethnic group that is willing to spend the most on a home compared to other races. They are expected to spend an average of $283,269, compared to whites paying $205,775, Hispanics paying $181,144, and African Americans paying $176,397. The main reason is that Asians have the highest median household income at $72,797 among these four ethnic groups. In addition, they are also found to be the youngest group of home buyers, with the median age of 36. [2]
“The tendency for Asian Americans to buy houses is not only fueled by their growing need for housing, but also their view of real estate as an attractive investment opportunity for their cash in hand,” said Giancarlo Pacheco, President at PCA. Although purchasing a home is not something easy, many young professional Asian Americans believe that owning a house is much more attractive than renting because the money is going towards their own property. Such emphasis on practicality, fiscal responsibility and financial independence are greatly influenced by their parents. From their perspective, a mortgage is different from other debts because property owners can always offset or eliminate the debt through the rental or sale of their real estate. [3]
For older generations of Asian Americans who already have a financial base, the motel industry has been one of the safe havens for their cash. Currently, the United States motel industry ranging from small independent motels to large economy franchises is dominated by Indian Americans. Although this particular ethnic group makes up less than 1% of the nation’s population, they own over half of the motels in the United States. [4]
If you would like to know how to get connected with more Asian investors and consumers, contact us at (877) 234-6700.
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About PCA
PCA is a full service minority owned multicultural marketing & communications agency with an emphasis on the Asian American market. For over a decade, the agency has been a leader in providing integrated campaigns for Fortune 1000 companies. Located in Los Angeles and New York, our mission is to provide a unique approach to captivating audiences, become a valued partner to our clients and establish ourselves as leaders in the Asian American community.
PCA has served a wide array of clients including Verizon, Gilead Life Sciences, Warner Music Japan, Samsung Electronics, Philippine Airlines, International Media Distribution, Anheuser Busch, Diageo, Lionsgate Entertainment and the Los Angeles Dodgers.
For more information, please visit http://www.plancagency.com
Sources:
[1] Realtor University To Study Homeownership Among Asian Immigrants
(http://www.inman.com/2013/08/12/realtor-university-to-study-homeownership-among-asian-immigrants/)
[2] What Home Buyers Really Want: Ethnic Preferences
(http://eyeonhousing.org/2014/03/what-home-buyers-really-want-ethnic-preferences-part-i/)
[3] Home Sweet Home: Asian Americans View Real Estate As Attractive Investments
(http://www.asianfortunenews.com/2014/03/home-sweet-home-asian-americans-view-real-estate-as-attractive-investments/)
[4] US Motel Industry Tells Story of Indian-American Immigrants
(http://www.voanews.com/content/indian-americans-dominate-us-motel-market-150041615/369987.html)