A Snapshot of Asian Wealth in America

In 2022, the median net worth of Asian households in the US equaled $535,400—close to double that of white households and more than eight times that of Black households, Hispanic households, and households of other racial or ethnic groups. Net worth, which we also refer to as wealth in this analysis, considers the entirety of a household’s assets—including savings, retirement accounts, and homeownership—minus its debts. Wealth can give a more comprehensive picture of a family’s finances than income alone.

Asian households may accrue more wealth because of their higher average incomes and higher levels of educational attainment—both factors associated with wealth. In 2022, the median income for Asian households was $112,400, and the median Asian adult held at least a bachelor’s degree. No other racial or ethnic group had a median household income above $90,000 nor a median educational attainment greater than some college.

When looking at wealth beyond the median, the gaps within the Asian category become more striking. At the 90th percentile, Asian households have a net worth of more than $3 million—a value 230 times greater than the $13,040 net worth at the 10th percentile. Although the wealth distribution among Asian families is wide, very few Asian families have zero or negative wealth, meaning most have some form of wealth to fall back on during a crisis.

Wealth among Asian families also varies by age, education, occupation, and entrepreneurship—reflecting similar variation in wealth among other racial and ethnic groups. Asian households with a bachelor’s degree have more than double the median net worth of those with a high school diploma or less. Asian households working in managerial or professional roles have a net worth almost triple that of laborers. Variation exists within household categories as well, with unmarried Asian people without children and younger than 55 having a $25,800 net worth at the 10th percentile but a $670,100 net worth at the 90th percentile.

This wide range of wealth outcomes can be partially attributed to the differences hidden under the “Asian” label. The “Asian” category can include people from at least 21 different origin countries, each whom experienced a different set of circumstances when they migrated to the US, including work restrictions, immigration laws, and political conditions in their home countries. As a result, Asian ethnic groups have large differences in income.

For instance, Urban Institute calculations of American Community Survey data indicate that Indian American households make three times the income of Mongolian American households annually ($147,000 compared with $50,000). Similarly, Asian households who speak English fluently have double the median income of those who do not and quadruple the median income of those who don’t speak English at all. Higher earnings can allow people to put money aside for emergencies or investments while covering day-to-day expenses, supporting their ability to build wealth.

Accumulating wealth in the US, however, requires more than just earning a high income. For many households, wealth-building opportunities require debt financing—such as student loans for a degree, a mortgage for a house, or a small business loan for a new venture.

The typical Asian family has a higher net worth, but it may come from a greater reliance on debt to achieve this wealth. The median Asian household has taken on higher debt burdens than other racial and ethnic groups, with Asian families having the highest median debt-to-income ratio (1.5). Having debt that exceeds income may constrain Asian families’ ability to save, spend, or handle unexpected costs. They may also be less able to take on new debt obligations if needed, especially if they have high monthly payments.

Relative debt burdens are highest among Asian families who are married, have earned a postsecondary degree, work in professional fields, own a business, or have bought a home—which mirrors patterns observed for other racial and ethnic groups.

Although debt is a crucial pathway for many to build their wealth portfolios, high debt burdens can undermine families’ financial well-being and induce hardship. In 2022, 1 in 10 Asian families reported being late on a debt payment, with half of those families more than 60 days behind. These households could accrue interest, trigger late fees, take a hit on their credit scores, and limit their ability to secure affordable loans in the future.

Across all Asian households that hold debt, 97 percent of that debt is held as mortgages or student loans (for themselves or family members). These types of debt are generally thought of as “productive,” because they can enable families to leverage wealth-building opportunities they might not otherwise be able to access. But productive debt only works if people can capitalize on it. In other words, having a mortgage only helps someone build wealth if they can pay it off without hardship and if the home retains or increases its value.

Similarly, if students take on high loan balances to pay for a postsecondary degree, it may lead to a higher income. But paying off that debt can constrain and delay their ability to invest in other opportunities. If students leave school without completing the degree, the opportunity costs are greater, as the loans still need to be repaid but the student won’t see the potential income boost from earning the credential.

Although Asian families have a disproportionate amount of so-called “productive debt,” some still hold large debt burdens for credit cards, vehicle loans, and other debt types. High debt burdens—regardless of type—can easily put families in precarious financial situations if they struggle to repay them or experience an unexpected emergency.

In the US, homeownership is the most used pathway toward building wealth, though for many people of color, systemic barriers have created large racial homeownership gaps. Here again, Asian families on average more closely resemble white families than other families of color but experience substantial variation.

Six in ten Asian families own their home, and these families have higher-value homes than other families, but they also have larger loan balances. Outstanding mortgage debt for homeowners with mortgages comprises about half (49 percent) of Asian families’ aggregate housing wealth. Only 29 percent of Asian homeowners own their home without any mortgage.

Among Asian families, home equity accounts for a sizeable 49 percent of net worth—lower than that of Black and Hispanic homeowners and closer to that of white homeowners. As such, Asian families, like white families, have a large amount of nonhousing wealth.

But variation across Asian households remains. Naturalized Asian immigrants own their homes at twice the rate of nonnaturalized Asian immigrants (73 percent to 39 percent), and Asian households fluent in English are more likely to own a home than those who aren’t fluent (60 percent to 36 percent, respectively). Further, just 1 in 4 Mongolian American households owns their home compared with 2 in 3 Taiwanese American households.

Business ownership offers families an opportunity to make ends meet through sustained income and a pathway for building intergenerational wealth. At the same time, business ownership can be risky: nearly 50 percent of new businesses fail in the first five years after opening. Access to capital, equity, credit, and technical assistance is necessary to help entrepreneurs achieve financial success.

In 2019, more than 2.9 million Asian-owned businesses existed in the US—far more than other racial and ethnic groups. Roughly a quarter of Asian-owned businesses with employees are concentrated in the restaurant and hospitality sector.

Nearly 1 in 7 Asian families in the US has a business and 13 percent have business equity, similar to rates for white families and 1.5 times that of Black and Hispanic families. Asian households with businesses have $408,000 in median business equity—nearly four times as much as white families and well above Black and Hispanic business owners. For Asian business owners at the 90th percentile, their business value is $4 million.

Among Asian business owners, 34 percent of their wealth comes from business assets—a substantial contribution to wealth creation. Asian households who own a business also have a net worth more than four times greater than those who do not. In addition to bolstering the asset side of the wealth portfolio, businesses can be used as collateral for families to access additional credit and resources to invest in other opportunities—although this can undermine their financial well-being if they are unable to easily repay this debt. Succession planning is crucial to ensure that business equity is preserved and passed on to the next generation.

For many households, stocks and investment funds offer a valuable path to long-term wealth. Roughly 40 percent of Asian families have money in directly held stocks, with the highest median value ($30,000) among all racial and ethnic groups. Asian families also hold more in other direct investments than other racial and ethnic groups, with a median of $80,000. These aggregate numbers hide a substantial “within race” disparity. Asian families at the 90th percentile have $860,000 more invested in investment funds than those at the 10th percentile. Although financial assets can support wealth-building, gains are not guaranteed, and families may lose money in volatile economic conditions.

Savings bonds and certificates of deposit can offer families a safe, predictable investment that can slowly build savings and avoid inflation eroding the money’s value over time. One in seven Asian families use certificates of deposit and savings bonds, with a median of $40,000 held.

However, each of these savings vehicles may come with restrictions or time delays around accessing funds. Looking only at liquid transaction accounts, which allow households to have money available at a moment’s notice, the median Asian family has four times more savings ($22,900) than Black and Hispanic families ($2,100 each) and nearly double that of the median white family ($12,000). But not all Asian families have such resources—13.5 percent had fewer than $2,000 saved.

Without sufficient savings from which to draw, families are more likely to be evicted, miss housing and utility payments, and rely on public benefits after an income disruption. Although Asian families are more likely to invest in financial assets and leverage these to build wealth over time as a group, some Asian families have fewer liquid savings, leaving them in a more precarious situation.

Nearly 75 percent of Asian families invest in retirement, with $130,000 saved at the median. These investments include those held in pensions, IRAs, employer-sponsored plans, and Keogh plans, which are retirement plans for self-employed people. For many older adults, retirement savings not only allow them to stop working and cover living expenses, but also to pass money on to the next generation, which is key to helping future generations thrive.

Compared with other racial and ethnic groups, Asian families are more likely to have retirement savings, and their median amount held exceeds that of other racial and ethnic groups. Among Asian families older than 50, nearly 70 percent have some retirement funds, with a median amount of $374,000, which for a single adult will only last about seven years (assuming no inflation in current median cost of living). However, Asian families at the 10th percentile have just $3,900 in retirement funds—likely not enough to cover a month’s expenses, meaning they may not be financially able to retire even if they are unable to work.

Further, 5 percent of Asian families have borrowed against their retirement funds (similar to rates for Black and Hispanic families—but higher than white families at 2 percent), which can undermine their future financial stability if these funds are not replenished. End-of-life care costs can also erode the funds families have saved, potentially lowering their quality of life if their funds are insufficient while diminishing the wealth left to younger family members.

Gifts and inheritances can offer households a leg up for accumulating wealth. Nationwide, 22 percent of families have received a gift or inheritance. However, only 1 in 10 Asian families receives inheritances or gifts—about a third the rate of white families (28 percent). When Asian families do receive money, most receive only one gift (85 percent), but that gift tends to be substantial. At the median, Asian families’ first gift is three times more than white families ($220,000 compared with $70,000).

Still, there is substantial variation across Asian households. At the 10th percentile, Asian families who receive inheritances receive $2,500 as a first gift—less than white and Hispanic households. Those at the 90th percentile receive a first inheritance of $600,000—enough to purchase a home, capitalize a business, or pay for school. Prior research has shown how receiving intergenerational transfers can greatly accelerate wealth-building by providing early resources that can be built on throughout life. These transfers also contribute meaningfully to differences in wealth trajectories between racial and ethnic groups.

Trusts offer families a tax-advantaged vehicle to pass down wealth, meaning more value goes to the next generation. Yet very few Asian families hold trusts (less than 5 percent). Without a will or a trust, a family’s wealth can be fractured, incur fees, and potentially diminish the quality of the assets. Asian families who do hold trusts receive considerable amounts, with even the 10th percentile receiving $60,000 while those in the 90th percentile receive $2 million.