When you hear about high end/high income Asian American neighborhoods and Asian-American influences on real estate markets, it can be easy to forget that Asian-Americans have incomes that vary greatly. The Asian Real Estate Association of America (AREAA) joined with the National Association of Hispanic Real Estate Professionals and National Association of Real Estate Brokers (NAREB) to issue a plan for addressing the housing crisis in minority communities. The plan‘s five points focus on expanding the Community Reinvestment act, educating and empowering homebuyers (especially first time homebuyers), reducing foreclosures, reinvigorating the mortgage market, and protecting consumers.
The press release announcing the plan says that Asian-Americans are 1.3 more likely than whites to be in foreclosure. Asian-Americans have had the biggest percentage drop in home ownership during the recession compared to other ethnic groups. I asked my Brother-in-Law the Realtor who lives with me (BIL for short) whether he has noticed a lot of foreclosures in the Asian-American community. BIL said that Asian-Americans are definitely not immune. As with academics and health, the effects of economic stress on Asian-Americans are diverse.
One of the five points emphasizes protecting consumers. A consequence of the current housing problems is that there are people ready to take advantage of those in desperate situations. Indian-Americans have been affected by this, and in Los Angeles, a law firm has been accused of taking advantage of Korean-Americans who are having trouble keeping their homes.
h/t: Joanna Wu