Asians Surprisingly The Most Affected By The Decline In Housing Market

September 30, 2009
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Asians hit worst by decline in housing market

Decline in the housing market almost affected every homeowners in U.S. especially in California where foreclosure rates are high and property price declines. But among the racial groups including Blacks, Whites, and Hispanics, the Asians surprisingly turned out to be the most affected.

Asians being the most affected among the groups is definitely a surprising result since they are known to earn more and have less debt. But according to the survey, one out of three Asian homeowners who live in California has experienced foreclosures and drops in home values. These are also supported by data showing that Asian homeownership dropped 1.24 percentage points last year to 59.4 percent while the drops for the Blacks, Hispanics, and Whites are only 0.88, 0.80, and 0.40 percentage points respectively.

Many experts were surprised by this outcome because they are expecting Asians to have smaller decline in home-ownership based on their higher income and low debt. Edward Wolff, an economist, suggested that this can be caused by a regional effect since there’s a high concentration of Asian population in California, where foreclosure rates and decline in property values are high.