Asian American households have the highest median income of the major racial and ethnic groups. Although Asian Americans have a higher median income than the non-Hispanic white population, they also have a higher poverty ratethan the white population on the Supplemental Poverty Measure (SPM). (The SPM is a more comprehensive poverty measure that also makes geographic adjustments for differences in housing costs.) This means that there is a significant amount of income inequality in the Asian American population, and the median income is masking the economic condition of impoverished Asian Americans.
About 40 percent of Asian American households are renters. According to data from the Joint Center for Housing Studies, in 2022, 44 percent of Asian American renters spent more than 30 percent of their household income on housing costs. While this 30 percent standard is a common measure of affordability, it may be too low a threshold for economic hardship for today’s economy. But, even using the severely cost-burdened standard, where a household is spending more than 50 percent of its income on housing, a full quarter (25.3 percent) of Asian American renters are in this situation.
