STATE OF ASIA AMERICA

Transcription

1 STATE OF ASIA AMERICA presented by RE/MAX, LLC Freddie Mac

2 Foreword Year Anniversary and FHA... Editors Notes... About AREAA... Policy Accomplishments in Focus in People... Languages... Education... Income and Employment... Homeownership... International Buyer Data... Global Investment Outlook... Canada... AAPI Women... Obstacles and Opportunities presented by Editor: Scott Berman Research: Scott Berman Design: Jazz Miranda Howard Shen 2

3 FOREWORD 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. Mike Reagan Senior Vice President RE/MAX 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. Danny Gardner Senior Vice President of Single-Family Affordable Lending and Access to Credit FreddieMac 3

4 HISTORIC MILESTONES FOR AREAA AND FAIR HOUSING 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 is also an incredibly important milestone for the United States it is the 50th anniversary of the landmark Fair Housing Act of 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 Thank you, Randy Char 2018 AREAA President 4

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. EDITORS NOTES 5

6 ABOUT AREAA 49% MALE 51% FEMALE 51 Years old average age 14 Years experience in real estate or banking industry Immigrants YEAR IMMIGRATED TO THE UNITED STATES or later 38% 1% 8% 27% 32% 20% 10% 3% INCOME & EDUCATION 74% Has at least a 4-year college degree $111,538 Income earned by the typical member in 2015 from all real estate or real-estaterelated activities Likely the PRIMARY BUT NOT SOLE EARNER for the household 6 74% Real estate is not their first career Membership represents a diverse range of ethnicities and races, with a vast majority identifying as AAPI. $156,250 Typical household income

7 MISSION ESTATEMENT Founded in 2003, the Asian Real Estate Association of America (AREAA) is a nonprofit professional trade organization dedicated to promoting sustainable homeownership opportunities in Asian American communities by creating a powerful national voice for housing and real estate professionals that serve this dynamic market. LOCAL CHAPTERS 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 Help us in our fight to increase AAPI homeownership and empower those who serve this dynamic market. Greater Seattle Portland Greater East Bay Greater Sacramento San Francisco Peninsula Greater Seattle Greater Denver Twin Cities Greater Chicago Boston Brooklyn New York East New York Manhattan Northern New Jersey Central New Jersey D.C. Metro Silicon Valley With 39 chapters across the US and Canada, plus a National Chapter, it is easy to get involved with an AREAA chapter near you. To connect with a local chapter, or find out which one you should join, visit or call the National Office at Inland Empire South Bay San Fernando Valley/Santa Clarita Tri-County Greater Los Angeles Central Valley CA Orange County San Diego Aloha Las Vegas Greater Phoenix Dallas/Fort Worth Austin Houston San Antonio Atlanta Metro Central Florida Greater Tampa Bay Greater Miami 7

8 POLICY ACCOMPLISHMENTS IN 2017 REMOVAL OF 1% RULE 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. 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. LANGUAGE ACCESS 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 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 8

9 ALTERNATIVE CREDIT 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 loanworthy without having to sacrifice the safe standards in lending created in the wake of the housing crash of LANGUAGE ACCESS ENSHRINING FAIR HOUSING 2018 marks the 50th anniversary of the landmark Fair Housing Act of 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%. FOCUS ON 2018 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 homebuying process. 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. 9

10 PEOPLE 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. Source : POPULATION AND DEMOGRAPHICS 22.5 MILLION (2016 ESTIMATE) 6.9% TOTAL US POPULATION Source: 72% GROWTH FROM FASTEST OF ANY DEMOGRAPHIC HISPANIC NEXT FASTEST AT 60% 7% INCREASE FROM LAST YEAR BY 2055, AAPI WILL BE THE NATION S LARGEST IMMIGRANT GROUP ACCOUNTING FOR 38% OF ALL US IMMIGRANTS. Source : ETHNIC GROUP POPULATIONS CHINESE INIDAN FILIPINO VIETNAMESE KOREAN JAPANESE 4.8M 4M 3.9M 2M 1.8M 1.4M

11 Source : AAPI ARE YOUNGER THAN THE AVERAGE AMERICAN Source : AAPI MEDIAN AGE 34.0 YEARS OLD US MEDIAN AGE 37.8 YEARS OLD 24.6% ARE UNDER 18 YEARS 59% 73% OF ALL AAPI ARE FOREIGN BORN ABOVE THE AGE OF 18 ARE FOREIGN BORN Only 27% of Japanese Americans, among some of the earliest Asian immigrants to the US, are foreign born while of all Bhutanese 92% Americans were born outside the US DISTRIBUTION Despite a slight dip from , the West still has by far the largest share of the overall AAPI population in that time. The South saw the largest gains. Source : 45% West Coast 12% Midwest 23% South 20% Northeast Since 2000, the South has had the fastest growth in their AAPI populations, followed by the Midwest, Northeast, and the West Source: 11

12 PERCENT CHANGE IN AAPI POPULATION, % Excluding Hawaii, where AAPI make up 56% of the population, the states with the largest shares of their population being AAPI are Source: % 44.8% STATE California New Jersey POPULATION 16% 10% South Midwest Northeast 36.3% West Nevada Washington 10% 10% Source: PERCENT CHANGE IN AAPI POPULATION, % South 29% Midwest 26% Northeast 21% West Top Total AAPI Population, State (2016 estimates; combining Asian and Native Hawaiian/Pacific Islander columns) Source: STATE California New York Texas Hawaii New Jersey POPULATION 6,966,611 1,968,869 1,605,811 1,194, ,712 Source: 12

13 Top 5 Fastest Growing AAPI Populations, State ( ) STATE POPULATION Top Total Asian American Population as Percent of Total Population, Metros (Excluding Honolulu, HI and Pacific Islanders) Source: Source: US Census Bureau Nevada Arizona North Carolina North Dakota Georgia % 103.9% 89.56% 86.85% 85.60% San Francisco, CA % San Jose, CA 23.6% Los Angeles, CA % Sacramento, CA % Seattle, WA % Top Total AAPI Population, County (2016 estimates; combining Asian and Native Hawaiian/Pacific Islander columns) Source: xhtml?src=bkmk Top Metro Destinations for Asian Immigrants Source: STATE POPULATION STATE POPULATION Los Angeles County, CA 1,759,596 Honolulu County, HI 854,043 Santa Clara County, CA 771,232 Orange County, CA 741,459 Queens County, NY 668,263 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 89,000 86,000 13

14 LANGUAGES TOP ASIAN LANGUAGES SPOKEN IN THE US Chinese 3.4 million (both Mandarin and Cantonese) Tagalog million (including Filipino) Vietnamese 1.5 million Korean 1.1 million 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 Hindi 0.81 million 77% OF AAPI SPEAK A LANGUAGE OTHER THAN ENGLISH AT HOME ONLY 9% OF NATIVE BORN AAPI ARE CONSIDERED LEP 47% OF FOREIGN BORN ARE CONSIDERED LEP 14 Source: PI-LanguageAccess1.pdf 20% of AAPI households are considered linguistically isolated, meaning no one in the household 14 years or older speaks English very well

15 EDUCATION Source: 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 STATISTICS 73% Asian Americans 56% National Average 73% of Asian Americans (excluding Pacific Islanders) between years old have completed at least some college, compared to the national average of 56% 52% Asian Americans 30% National Average 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% Percent of 25 years or older with Bachelor s Degree or Higher, by Ethnicity INDIAN KOREAN CHINESE (EXCLUDING TAIWAN) JAPANESE FILIPINO 73% 54% 52% 49% 48% Percent of Doctoral Degrees Awarded to Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study HEALTH PROFESSIONS LEGAL PROFESSIONS OR STUDIES ENGINEERING Percent of Bachelor s Degrees Awarded to US Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study STEM Business Health Professions 30% (15%) 21% (23%) 13% (13%) Percent of Master s Degrees Awarded to Asian American and (separately) Pacific Islander Students in 2013, in selected fields of study Business Health Professions Education 60% (38%) 19% (42%) 4% (2%) 33% (32%) 15% (18%) 10% (23%) 15

16 Top Public US Universities for AAPI Enrollment (total number of students enrolled) Source: UC Berkeley Rutgers University San Francisco State University Cal State University, Fullerton The University of Texas at Austin STUDENT AID 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. LOANS In % Source: 51% GRANTS 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 INTERNATIONAL STUDENT DATA 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 Source: TOP 5 COUNTRIES OF ORIGIN China India South Korea Saudi Arabia Canada 350, ,267 58,663 52,611 27, % 67% of Asian Americans received a federal grant for an average amount of $12,120 of Pacific Islanders for an average amount of $12,350 TOP FIELDS OF STUDY Engineering Business and Management Math and Computer Sciences Social Sciences Physical and Life Sciences Source:

17 INCOME AND EMPLOYMENT ON AVERAGE, AAPI HAVE HIGHER INCOMES THAN THE GENERAL POPULATION HOUSEHOLD INCOME LEVELS Median Household Income - $87,000 Source: High Indian American - $103,821 Source: html Bangladeshi - $49,515 Source: Ibid MEDIAN USUAL WEEKLY EARNINGS OF FULL-TIME WAGE AND SALARY WORKERS, 3Q 2017 Asian White African American Hispanic $1,010 $887 $696 $655 Source: MEDIAN AAPI HOUSEHOLD INCOME BY REGION / TOTAL POPULATION MEDIAN Northeast - $109,200 / $95,100 West - $96,100 / $87,400 Midwest - $90,700 / $66,800 South - $84,800 / $69,100 MEDIAN YEARLY EARNINGS, FULL-TIME WORKER AGE (MILLENNIALS) Asian (Excluding Pacific Islander) White $50,400 $42,000 National Pacific Islander African American Hispanic $40,000 $39,000 $33,300 $29,600 Source: Source: 17

18 SAVINGS, INVESTMENT, RETIREMENT EMPLOYMENT STATS EMPLOYMENT RATE 33% of AAPI own individual stocks 60.9% 58.9% 53.6% 61.1% Source: AVERAGE ESTIMATED HOUSEHOLD FINANCIAL ASSETS AAPI - $445,600 US AVG - $385,50 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 49% say retirement is their number one financial priority AAPI Average Expected Age of Retirement Source: Ibid Asian alone White alone African American alone EMPLOYMENT INDUSTRIES AMONG THOSE 16 OR OLDER Management, Business, Science and Arts Sales or Office Service Occupation Production, Transportation, and Material Moving Natural Resources, Construction, and Maintenance Hispanic alone 50.1% 20.4% 16.9% 9.4% 3.2% Source: 18

19 ECONOMIC IMPACT PURCHASING POWER In 2018, AAPI purchasing power will exceed $1 Trillion USD an increase of 257% since the year By 2022, AAPI purchasing power will increase by another 33% to $1.3T USD. At the current purchasing power level, AAPI are 17th largest economy in the world, just behind Mexico and just ahead of Turkey. Source: Humphries, J. M. (2017, June). The Multicultural Economy 2017 (Rep.). Retrieved December, 2017, from Selig Center for Economic Growth, University of Georgia website: PURCHASING POWER BY ETHNICITY ($ / % OF TOTAL AAPI BUYING POWER) Indian Chinese (excluding Taiwan) Filipino Korean Vietnamese Source: Ibid $266B / 27% $231B / 23.4% $147B / 14.92% $81B / 8.2% $71B / 7.2% 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. 19

20 TOP STATES California New York Texas New Jersey Illinois - $39B Source: Ibid $323B $88B $78B $57B $39B WHERE AAPI SPEND MORE Dining out Housing Public Transportation Education Clothing TOP STATES BY AAPI SHARE OF TOTAL BUYING POWER Hawaii California New Jersey Washington Nevada Source: Ibid TOP STATES BY GROWTH OF AAPI BUYING POWER, South Dakota North Dakota Texas Vermont Indiana Source: Ibid 45.2% 16.4% 102.3% 94.7% 89.4% 89% 88.7% 11.6% 9.9% 9.2% Source: Ibid AAPI BUSINESSES AAPI owned businesses increased 24% from , to 1.9 million Source: Humphries, J. M. (2017, June). The Multicultural Economy 2017 (Rep.). Retrieved December, 2017, from Selig Center for Economic Growth, University of Georgia website: uga.edu/about/centers-institutes/selig Far outpacing total US firm growth of just 3% Source: Ibid Generating $700B USD in revenue Source: Hawaii was the only state in 2012 in which the majority (51.5 percent) of all firms were Asian-owned. Source: Ibid California ranked second with 17.0 percent. Source: Ibid 20

21 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. Source: Courchane, M., Gailey, A., Darolia, R. (2014, July 22). Borrowers from a Different Shore: Asian American Outcomes in the US Mortgage Market. 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 mulitgenerational homes. Nationwide, the number of AAPI homebuyers has increased 27% since 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%. Source: HOMEOWNERSHIP RATES (AS OF 4Q2017) US Average Non-Hispanic White AAPI Hispanic African American Source: HISTORIC TABLE OF AAPI HOMEOWNERSHIP 58.2% 57.1% 56.5% 56.8% 56.6% 55.6% 55.7% 53.7% 4Q2017 3Q2017 Highest 2Q2017 1Q % (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) 4Q2016 3Q2016 Lowest 2Q2016 Source: 1Q

22 HMDA LOAN TYPE DATA BY RACE 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 CONVENTIONAL LOANS APPLICATIONS RECEIVED LOANS ORIGINATED Number $000's Number % of Total $000's % of Total WHITE 2,790, ,354,033 2,033, % 512,726, % AAPI 283, ,283, , % 73,686, % HISPANIC 275,409 53,933, , % 35,870, % AFRICAN AM. 161,357 28,964,802 83, % 17,205, % FHA, FSA/RHS, AND VA APPLICATIONS RECEIVED LOANS ORIGINATED Number $000's Number % of Total $000's % of Total WHITE 1,420, ,181,633 1,046, % 211,067, % AAPI 43,157 11,892,189 29, % 8,236, % HISPANIC 288,297 60,017, , % 41,854, % AFRICAN AM. 220,699 45,654, , % 29,784, %

23 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 APPLICATIONS RECEIVED LOANS ORIGINATED Number $000's Number % of Total $000's % of Total WHITE 6,143 3,802,505 4, % 2,630, % AAPI , % 561, % HISPANIC , % 274, % AFRICAN AM , % 89, % NON-OCCUPANT APPLICATIONS RECEIVED LOANS ORIGINATED Number $000's Number % of Total $000's % of Total WHITE 817, ,529, , % 111,795, % AAPI 103,779 29,504,840 64, % 18,457, % HISPANIC 90,158 15,737,187 44, % 8,118, % AFRICAN AM. 61,057 8,354,164 25, % 3,688, % 23

24 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 NON-RESIDENT VS. RESIDENT 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% PURCHASE PRICES AVERAGE HOME PRICE Foreign Buyers - $536,852 All US - $277,733 MEDIAN Foreign Buyers - $302,290 All US - $235,792 24

25 TOP COUNTRIES OF THE TOP 5 STATES, % ORIGIN FROM ASIA/ OCEANIA Total Value of Purchases No. of Purchases Average Price Median Price $31.7B 40,572 $781,801 $529,934 California New Jersey Texas Arizona Florida 71% 48% 39% 12% 10% $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 Buyers from China, India, and Mexico were mostly Resident Buyers 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 Buyers from Canada and UK were primarily Non-Resident 25

26 INTENDED USE OF PROPERTY AMONG CHINESE / INDIAN BUYERS PREFERRED LOCATION OF PROPERTY BY CHINESE / INDIAN Primary Residence 39% / 76% Residential Investment 21% / 15% Both Vacation and Investment 18% / 2% For Use by Student 8% / 4% Suburban Urban Small Town 61% / 75% 31% / 15% 7% / 7% TYPES OF PROPERTY ALL FOREIGN BUYERS Detached Single-Family Condominium Townhouse 64% 17% 12% CHINESE / INDIAN Detached Single Family Townhouse Condominium 67% / 74% 14% / 17% 13% / 7% 26

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. Source: 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. Source: Headline making deals became the norm, with transactions of over $250M USD representing 74% of committed investments in 2017, versus 56% in Source: The U.S. is still the top destination for Asian capital, with $21.9B USD invested in the first half of Source: 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. Source: 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 H Source: TYPES OF INVESTMENTS Office space remained the top priority for investors, accounting for 44% of all committed capital in H Logistics Residential Hotel Retail Alternative Investments TRENDS 2% 6% 7% 7% Top Countries through H CHINA SINGAPORE HONG KONG SOUTH KOREA JAPAN 34% Source: $25.6B USD $6.8B USD $6.6B USD $2.9B USD $1.3B USD Source: English Top International Destinations for Asian Capital through H LONDON 10% NEW YORK 8% HONG KONG 5% SHANGHAI Source: SINGAPORE 4% 4% 27

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. Nearly 1 in 7 Canadians is of Asian background. 5,008,805 / 15% OF TOTAL CANADIAN POPULATION TOP ASIAN ETHNICITIES PAKISTANI 215,560 VIETNAMESE 240,615 9% 2001 ASIAN CANADIAN POPULATION GROWTH Canada has a significantly larger Asian population (15%) as percent of total than the US (6.9%) 6.9% 15% TOP ASIAN IMMIGRANT POPULATIONS VIETNAMESE 169,250 PAKISTANI 202,255 15% 2016 Source: FILIPIN0 837,135 FILIPIN0 588,305 INDIAN 1,374,715 INDIAN 668, CHINESE (INC. HONG KONG AND TAIWAN) Source: TAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&PID=110528&PRID=10&PTYPE=109445&S=0&SHOWAL L=0&SUB=0&Temporal=2017&THEME=120&VID=0&VNAMEE=&VNAMEF= 1,769,195 CHINESE (INC. HONG KONG AND TAIWAN) 915,285 Source: imm/table.cfm?lang=e&t=21&geo=01&so=4d

29 Proportion of Total Population of Asian Major Ethnic Groups, Province Source: 22% BRITISH COLUMBIA 13.5% 16.1% ALBERTA ONTARIO 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 UNITED STATES EUROPE ASIA 47% 37% 9% Top Asian Countries of Origin, Inbound Investment (C$) CHINA JAPAN INDIA SOUTH KOREA $33,617B $29,101B $2,811B $1,461 Source: 29

30 AAPI WOMEN AAPI women have become a dominant social and cultural force in the U.S. over the last decade. Between , 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 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) POPULATION (2015 EST.) - 11,120,928 KOREA 7% VIETNAMESE 8% FILIPINA 14% US BORN 41% INDIAN 16% FOREIGN BORN 59% CHINA 20% 30 sen-2017-asian-american-women-diverse-intelligence-series-report%20(2).pdf

31 MEDIAN AGE 36 78% of US-born AAPI women are under the age of 34 70% of foreign born AAPI women are over 35 IMMIGRATION 19% of total US immigrants to the US between were Asian or Pacific Islander TOP COUNTRIES OF ORIGIN FOR RECENT AAPI FEMALE IMMIGRANTS EDUCATION AAPI women are the most well-educated of all US women 19% 34% 49% Compared to 34% of all women 49% over the age of 25 have at least a bachelor s degree have a Graduate degree India China Philippines LANGUAGE 25% 23% 12% INCOME AND EMPLOYMENT $105,604 Is the average Household Income with an AAPI female earner Compared to $84,075 of non-hispanic white households with a female earner 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 23% of AAPI women earn $50,000 or more annually Compared to 17% of all women 31

32 46% of AAPI women say it is their goal to make it to the top of their profession 40% more than non-hispanic white females TOP INDUSTRIES Growth of Total Number of Female Majority Owned Businesses ( ) AAPI US 44% 27% Health Care Professional, Scientific, and Tech Services Arts, Entertainment, and Recreation ENTREPRENEURSHIP 18% 12% 12% Growth of Sales by Female Majority Owned Businesses ( ) AAPI US 54% 19% AAPI women are the majority owner over nearly 750,000 businesses, with combined sales of over $136B USD. Growth of Total Number of Female Majority Owned Businesses ( ) AAPI women are majority or equal owners of 43% of all AAPI owned businesses Between , 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 Florida Texas California New Jersey Arizona 22% 12% 12% 4% 4% nie sen-2017-asian-american-women-diverse-intelligence-series-report%20(2).pdf 32

33 OBSTACLES AND OPPORTUNITIES OVERVIEW 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. DISCRIMINATION HOUSING 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. Source: Asian homebuyers who contact agents about recently advertised homes for sale learn about 15% fewer homes and are shown nearly 19% fewer than whites. WHITES 15%Less KNOWN TO ASIAN 19% Less SHOWN TO ASIAN Source: Housing Discrimination Against Racial and Ethnic Minorities (2013, June 1) WORKPLACE In a recent Gallup Poll, over 30% of AAPI surveyed reported facing incidents of workplace discrimination, the highest rate among any demographic group. Source: 52% of AAPI employees reported experiencing some form of discrimination or bias outside of the workplace Source: And 36% reported that it is unacceptable at their current company to discuss experiences of bias based on race. Source: 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. Source: 33

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. Source: 48% of AAPI say the biggest obstacle they face in rising through the ranks is conforming to Western leadership models. Source: Weekly earnings for Asian men vs. women $1,147 $902 Best Filipino 96% of what a male makes Worst - Vietnamese 71% of what a male makes WEALTH IMBALANCE 20% 60% AAPI are also 15% less likely than Caucasians to have a mentor at their place of employment, at 46% compared to 61%. Source: GENDER WAGE GAP AAPI women face a larger gender wage gap than other minorities, earning 78.6% of what their male counterparts make. Top 20% of AAPI control nearly half the total wealth AAPI WEEKLY WAGE INEQUALITY Top 10% $2,482 Bottom 60% hold just 15% Source: Source: Bottom 10% $438 34

35 POVERTY AAPI have a 17% poverty rate; US average 12% GET TO KNOW AREAA Asian alone 13% Pacific Islander alone 21% 17,000 Members and Growing 39 Chapters Across US and Canada 51 Ethnicities Represented Source: 26 Languages Spoken 2 National Conferences Per Year HIGH AND LOW AMONG ETHNIC GROUPS Highest Poverty Rates BURMESE BHUTANESE HMONG 35% 33.3% 28.3% National Policy Summit Each May National Day of Community Service Multiple Trade Missions to Asia Each Year Find Out What We re Doing Next areaa.org Lowest Poverty Rates FILIPINO INDIAN JAPANESE 7.5% 7.5% 8.4% 35

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