Honoring Asian Heritage Month: A Reflection on Language, Wealth, and Housing

As a proud partner of the Asian Real Estate Association (AREAA), Engel & Völkers is committed to educating and empowering our communities, ensuring that all individuals have access to the resources and opportunities necessary to achieve their real estate goals. From language proficiency to economic mobility and housing equity, understanding these dynamics helps us appreciate the challenges and achievements within these communities. 

Language Proficiency and Its Impact

Language proficiency is crucial for immigrant populations, influencing their ability to access employment opportunities, government resources, and medical services. For the AANHPI community, English proficiency varies significantly. While roughly half of recently arrived Asian immigrants consider themselves proficient in English, a significant portion still struggles with language barriers. In fact, 47% of recent Asian immigrants report low proficiency in English. These language barriers are more pronounced among low-income immigrants, who tend to have lower English proficiency compared to all immigrants. This underscores the need for accessible language education and resources to help individuals navigate daily life and achieve economic stability.

Economic Mobility and Wealth Accumulation

The economic landscape for AANHPI communities is marked by both progress and disparity. During the pandemic, lower-income Asian households saw modest increases in wealth, but these gains were still far below those of their white counterparts. From 2019 to 2021, Asian households gained $5,300 in wealth, compared to $24,100 for white households. Moreover, the median annual income for HUD-assisted Asian Americans is significantly lower than the national average. This slow growth in wealth accumulation highlights the economic challenges faced by minority groups, compounded by systemic inequities in access to financial resources and opportunities.

Housing and Appraisal Equity

The high cost of housing and limited access to affordable mortgage options disproportionately affect AANHPI communities. For example, 54% of severely cost-burdened Asian households are Limited English Proficient, compared to 9% of white households. Additionally, only 37% of low-to-moderate income AANHPI households own homes, compared to 53% of white households in the same income group. Furthermore, studies have shown that homes in minority neighborhoods are often undervalued compared to those in predominantly white areas. This undervaluation can significantly hinder wealth accumulation through home equity.

Attending the First-Ever AANHPI Economic Summit

This May, the Treasury Department hosted the first-ever 2024 Asian American, Native Hawaiian, and Pacific Islanders (AANHPI) Economic Summit to celebrate the AANHPI community and spotlight its important role in our economy. Engel & Völkers had the honor of attending the summit, which marked a milestone for the AANHPI community and their efforts to build a stronger and more inclusive economy for all Americans.

The summit brought together AANHPI community and business leaders, activists, and stakeholders to discuss economic challenges and opportunities faced by AANHPI communities. Participants explored Administration and Treasury initiatives that have contributed to the success and vitality of these communities and shared insights on ways to strengthen community and public sector engagement on pressing economic development issues most relevant to AANHPI communities.

Engel & Völkers' Commitment to Inclusivity 

At Engel & Völkers, we are committed to fostering equality and inclusivity within the real estate market. We proudly support the Asian Real Estate Association of America (AREAA) and are dedicated to addressing the unique challenges faced by AANHPI communities. By honoring Asian Heritage Month, we reaffirm our commitment to promoting diversity, equity, and inclusion in all our endeavors.

To learn more, access AREAA’s 2024 State of Asia America Report here.