C O A L I T I O N Corner Understanding Multicultural Real Estate Markets Coalition Corner: Business training tools for HR staff, real estate licensees and other service professionals in the relocation and real estate industries © 2005, Employee Relocation Council/Worldwide ERC ® Coalition

C O A L I T I O N Corner This program supplements a monthly editorial feature in ERC ® ’s Mobility magazine This segment will: –Provide statistics to demonstrate the changing demographics of home buyers in America –Suggest tips for real estate professionals to use to help prepare to meet the needs of a changing client base Program objectives

C O A L I T I O N Corner Introduction American consumer markets are diverse and multifaceted A look at some statistics will demonstrate…

C O A L I T I O N Corner Statistical review A glimpse at the U.S. population today reveals that: –70% are White/Caucasian –13% are African American –13% are Hispanic –4% are Asian/Pacific Islanders –1% are Native American

C O A L I T I O N Corner Statistical review A glimpse at what the U.S. population is expected to be tomorrow (by 2050): –53% are projected to be White/Caucasian –24% are projected to be Hispanic –15% are projected to be African American –9% are projected to be Asian/Pacific Islanders –1% are projected to be Native American

C O A L I T I O N Corner Statistical review Estimated current consumer purchasing power of these segments: –White/Caucasian: $6.3 trillion –African American: $646 billion –Hispanic: $581 billion –Asian/Pacific Islanders: $296 billion –Native American: $41 billion

C O A L I T I O N Corner For further thought… 11.5% of the U.S. population is foreign- born, with 40% from just five countries: Mexico, India, China, Philippines and Vietnam 72% of foreign-born Americans live in six states: California, New York, Texas, New Jersey, Illinois and Florida

C O A L I T I O N Corner For further thought… In mid-2003, the U.S. population was estimated to be 290 million Over the next 10 years, immigration is predicted to account for 28% of the U.S. population growth Immigration is expected to occur at a rate of 1 million new immigrants per year

C O A L I T I O N Corner How does this apply to real estate professionals? By 2020, the rate of new households is expected to increase by 1 million per year 64% of that growth is expected to be minority- driven (35% current residents, 29% immigrants) Minorities currently represent 30% of first-time homebuyers, and by 2010, that rate is expected to increase to more than 50%

C O A L I T I O N Corner What do the numbers mean? Savvy professionals in service industries will recognize and appreciate the changing demographics, making every attempt to meet the needs of different consumer segments Whether marketing to first-time buyers or providing managed move services to immigrants/international transferees, a bit of preparation and training will help pave the way for success

C O A L I T I O N Corner Practical tips 1.Make no assumptions! 2.Conduct research: knowledge about a given location/culture and current events helps build client rapport 3.Maintain an open attitude, flexibility and patience, respecting that cultural practices and expectations may impact decisions ranging from who’s involved to where/what is acceptable 4.Listen carefully and ask a lot of questions 5.Be mindful of varying attitudes/practices that shape such things as credit history, financial privacy and negotiating tactics

C O A L I T I O N Corner Practical tips (continued) 6.Establish specialists within the firm on given areas/cultures…a “go to” person for specific information and advice 7.Advertise in foreign language publications/radio stations, and become involved in professional/social groups for networking opportunities 8.Keep a current list of foreign language skills within the firm 9.Offer homebuyer workshops and/or write articles for publications that cater to the needs of specific cultural segments 10.Establish relationships with related industries to provide a full range of services

C O A L I T I O N Corner Other useful information… While it’s important to accommodate client requests wherever possible, real estate professionals also need to be well-versed in the parameters of the Fair Housing Act: –It’s unacceptable to grant a request to work with a specific agent based solely on race or ethnicity, for example, but a request for an individual based on language skills is permissible

C O A L I T I O N Corner For more information… The Coalition thanks Anne Tully, Coldwell Banker Success Realty, Scottsdale, AZ; Lisa T Milovanovich, SCRP, PepsiCo, Inc., and Leigh Massey, ERC Coalition, for permission to use this material from an ERC 2003 Global Workforce Symposium session The primary source used here is the U.S. Census Bureau. For specific references, please contact ERC’s Coalition at For more information on the Fair Housing Act, see