1. Reshaping of US Real Estate: Emergence of the Asian consumers Locally and Globally. 
Jim Park
Chairman Emeritus
Asian Real Estate Association of America
&
CEO, The Mortgage Collaborative

2. AAPI Impact on US Mortgage Lending Increasing
The evolution of US Asian Demographics
Lending impact and opportunities from AAPI
Influence of foreign buyers on local real estate
The China Factor

3. % of Projected New Households 2010-2025
New Household Formation Driven by Diverse Markets
13 million of the 17 million projected between 2010 and 2025
% of Projected New Households
Hispanic – 40.5%
You’ve heard the national data and market trends regarding the household formation. According to Harvard Joint Center, over the next ten years, more than 70 percent of household formation will come from diverse segments. We have also seen increases in diverse origination business.
SOURCE: Updated Household and New Home Demand Projections, Sept 2010
Joint Center for Housing at Harvard, US Census – homeownership rates Q2 2013

4. Expanding Beyond Gateway Cities

5. Fastest Growing Community
The current estimated population is 19.4 million; the South and the West have experienced the most growth

6. AAPI Community is Diverse
Top Asian Languages Spoken in the US

7. Significant Income and Savings

8. Education Highly Valued

9. Broad Economic impact

10. Buying Power Continues to Expand

11. Homeownership Growth Potential

12. AAPI’s Disproportionate Impact on Lending Business
1,996,718 total number funded
$596,467,360,000 total dollar amount funded
Average amount financed: $298,724
Hispanic
2,214,680
$394,055,070,000
Average amount financed: $177,929
African American
1,531,819
$262,878,713,000
Average amount financed: $171,612
Despite a significantly smaller population, over the last 5 years, AAPI are the largest minority participant in the purchase money mortgage market both in terms of both
number of loans funded and total dollar amount funded.

13. AAPI’s impact on Honolulu Lending
Honolulu County, HI
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Total Purchase Loans (units)
6,364
6,029
6,288
7,003
7,503
8,426
9,050
9,667
10,195
10,812
Conventional Purchase Loans (units)
4,151
4,122
4,317
4,919
5,077
6,007
6,648
7,291
7,922
8,602
FHA Purchase Loans (units)
969
441
259
161
181
266
389
471
488
509
AAPI Purchase Loans
3,295
3,123
3,217
3,404
3,369
4,435
4,861
5,232
5,518
5,840
AAPI Conventional Purchase Loans
2,975
2,714
2,673
2,860
2,844
3,784
4,166
4,507
4,824
5,141
AAPI FHA Purchase Loans
485
214
133 85 76
257
305
320
353
AAPI Conventional as % of Total
90.3%
86.9%
83.1%
84.0%
84.4%
85.3%
85.7%
86.1%
87.4%
88.0%
AAPI FHA as % of Total
14.7%
6.9%
4.1%
2.5%
2.3%
5.3%
5.8%
6.0%
AAPI Total as % of Total
51.8%
51.2%
48.6%
44.9%
52.6%
53.7%
54.1%
54.0%
AAPI Conventional as % of Total Conventional
71.7%
65.8%
61.9%
58.1%
56.0%
63.0%
62.7%
61.8%
60.9%
59.8%
AAPI FHA as % of Total FHA
50.1%
48.5%
51.4%
52.8%
42.0%
68.0%
66.1%
64.8%
65.6%
69.4%
Source: iEmergent

14. Lending Opportunities in AAPI Market
Alternative Credit Lending
Condo Loans
Pledge Asset Loans

15. Global Impact on US Real Estate
International purchase of US real estate is expanding
Impact of Chinese buyers is growing
International buyers are purchasing higher priced homes
Financing options are limited for international buyers

16. Source: NAR

17. Make up of International Buyers

18. Top International Purchasers

19. Mean Prices: All Buyers vs. International Clients Source: NAR
All Buyers Non-resident Resident International
Mean Prices: All Buyers vs. International Clients Source: NAR

20. International buyers spend more dollars on average purchase

21. Thank you AREAA.org Radian’s Market Driver Initiative
Jim Park ---