In metropolitan areas across the country, AAPI (Asian American Pacific Islander) people continue to leave behind traditional markets in favor of more affordable ones throughout the nation. AREAA has been tracking this migration for several years and the New York Times also recently shared that AAPI people are mainly making these decisions because of their desire for a cheaper cost of living and the need to find safer, more accepting neighborhoods amid the Asian hate crime crisis that is currently going on around us. This also coincides with the findings of our 2022 State of Asia America report, which found that the number one factor influencing the AAPI homebuying process is the need for safety and security.
Affordability and safety, the two leading factors in the homebuying process for the current group of AAPI homebuyers, are not necessarily always achievable. Affordability can often come at the expense of safety, and vice versa. It’s no secret that some of the most densely populated AAPI communities are within some of the most expensive areas in the country, such as San Francisco, Sacramento, Los Angeles, Boston, New York and more. While these areas are some of the most accepting, they are also the most unaffordable areas, which creates the paradox of the AAPI homebuying process.
The second most important demographic consideration according to the State of Asia America report is finding opportunities for social interactions with other AAPI groups. This is yet another reason why many AAPI homebuyers feel pigeon-holed into living in overly expensive areas where there is a plethora of these opportunities. These people—homeowners and renters—are often reluctant to leave these areas out of fear for not only their safety, but also their ability to have meaningful social interactions.
How do communities around the nation welcome those in the AAPI community interested in more affordable opportunities? What is the role of the real estate industry in rolling out a welcome mat?
Obviously, we want homebuyers no matter their ethnicity, gender, sexual orientation, etc. But if there is a reluctance of any of these groups to move, that presents a problem for all of us in real estate sales. We’re now not only battling turbulent market conditions, but we also must realize that many of our clients—like those in the AAPI community—may also be battling other concerns. And considering that AAPI homeownership levels are about 60%, this is a sizeable audience. Therefore, I encourage every agent to understand the different AAPI communities you may be serving and what local amenities might be available for them. Remember, there are about 50 different ethnic groups within the AAPI community.
The New York Times found that because of the volume of immigrants leaving cities in favor of suburbs, many communities’ stances on politics and other socioeconomic priorities are drastically shifting in new directions as their demographics also change. For communities that are experiencing these changes, we must do our best to understand how this change benefits diverse groups including the AAPI community. Just because an area doesn’t have a long history of AAPI homeownership, doesn’t mean we can’t allow it to develop.
Take a look at your market. Have you noticed more AAPI people moving in? Have you noticed new businesses opening catering to these new community members? What about organizations that serve the AAPI community? I’d encourage you to get familiar with them. Once you do, agents and their brokerages can work with community leaders to showcase your “up and coming AAPI community.” Agents would also understand the challenges these buyers face and guide them properly on feeling comfortable in the neighborhoods they are interested in living in. I’m not talking about steering. I’m talking about you being a resource to comfort them, guide them and address concerns they might have. Just as you would any client.
At the same time, you can become a leader in your community. You can welcome these new buyers, understand their different cultures, introduce them to people in your sphere of influence and allow them to thrive. You’ll be able to do this because you have become comfortable working with a new group of buyers and you also understand their concerns and challenges.
Believe me, its not easy moving from an area that is densely populated with others just like you. The safety in numbers and established business and social community has always been the draw. Real estate agents, along with their friends, family, and colleagues, can play a huge role in easing concerns, helping the AAPI community overcome obstacles and allow them to have a huge opportunity to enjoy life in a new community.
