| Home ownership a step toward the American Dream by Laura Salinger |
| For decades, home ownership in America has gone hand in hand with the notion of the American Dream. Franklin D. Roosevelt called a nation of homeowners "unconquerable" and Herbert Hoover once said that homeowners have a more healthy and happy atmosphere in which to raise their children.The National Association of Realtors calls home ownership "the traditional starting point for American families to accumulate wealth." Home ownership is considered a major contributor to building communities and strengthening economies. Studies have found that children of homeowners are more likely to graduate from high school and college. They are more likely to become homeowners within 10 years of moving out of their parents' house and girls are less likely to become teen-age mothers. Homeowners are more likely to take a stake in their community and join community organizations. They read the newspaper more often and are more likely to report that they have worked to solve local problems. With policymakers continuing to stress the value of home ownership and society toting it as a major milestone in attaining the American Dream, owning a home is a dream deeply imbedded in the American psyche. Yet, it is a dream that was denied to many in years past. Minorities have long been excluded from this dream that has defined America. African Americans, Asian Americans, and Latinos share a history which forbade them from owning homes, owning land, intermarrying with Whites, and even living in certain areas of a city. Times have changed and despite a long history of inequities, home ownership among minorities continues to increase and is currently at an all-time high. According to statistics from the U.S. Census Bureau, the rate for home ownership in 2005 among African Americans was 48.8 percent and 49.7 percent for Hispanics. This is compared to a 76 percent rate of home ownership among Whites. Asian Americans and Pacific Islanders top the rate of minority home ownership with 59.4 percent owning their own homes. While data indicates that Asian Americans are doing very well in the area of home ownership and realtors are recognizing the value of tapping into this market, there are still barriers facing certain ethnic and cultural groups that fall under the broad racial category of Asian American. Newly arrived immigrants, such as Hmong families, are faced with numerous obstacles when it comes to buying a home: language and cultural barriers, financial instability, and unfamiliarity with the home buying process. Yet, there is still a gap between well-established Asian Americans and their White counterparts. While Chinese Americans and several other Asian American groups earn a higher income on average than Whites, their home-ownership rate is still lower. In 2004, the Asian Real Estate Association of America (AREAA) conducted a survey of real estate professionals who serve Asian American homebuyers. Recognizing that the Asian American population is a diverse one, which includes many different cultural and ethnic groups with varying experiences, AREAA sought to create an accurate picture of home ownership among Asian Americans and break down the "model minority" theory. They identified the top five barriers that Asian Americans face when it comes to buying a home. Real estate professionals listed language and cultural barriers as the number one obstacle faced by potential Asian American homebuyers. This is most visible in newly arrived Asian American immigrants who are just beginning to learn their new country and are unfamiliar with the culture. Lack of knowledge regarding the home buying process came in at a close second, while unverifiable income was listed as the third barrier. Lack of credit and trust issues came in fourth and fifth. Other barriers included lack of funds for a down payment, lack of affordable housing options, poor credit, and prejudice. In conclusion to their study, AREAA states, "the findings of this study paint a picture of how diverse the Asian American community is in terms of population, housing, income, language, and arrival to the United States. Often referred to as a model group, one which has fully assimilated into American society, the study has helped to dispel several misconceptions about the Asian American community." AREAA defines the Asian American community as one that is underserved by real estate professionals, concluding that they represent an untapped business opportunity. With real estate professionals beginning to target this population as potential homebuyers, the question then becomes what is the benefit for Asian Americans to own their homes? Aside from the social and economic benefits to the community as a whole, home ownership provides individuals with a sense of security, investment value, and tax deductions. The benefits of renting, on the other hand, include increased mobility, lower monthly payments, and freedom from maintenance and repair costs. Whether home owning or renting is right for Asian American families is up to the individuals and their circumstances, but activists and real estate professionals will continue looking for ways to narrow the home ownership gap separating Asian Americans from Whites. The message they are sending is that element of the American Dream is now available to America's minority populations. |
 |
 |
| to home page |
 |