Transcript Real Estate Coalition Update and Action Plan

Coalition Corner:
Business training tools for HR staff, real estate licensees and other
service professionals in the relocation and real estate industries
Understanding Multicultural
Real Estate Markets
© 2005, Employee Relocation Council/Worldwide ERC® Coalition
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Program objectives
• 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
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Introduction
• American consumer markets are diverse
and multifaceted
• A look at some statistics will
demonstrate…
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Statistical review
• A glimpse at the U.S. population today
reveals that:
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70% are White/Caucasian
13% are African American
13% are Hispanic
4% are Asian/Pacific Islanders
1% are Native American
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Statistical review
• A glimpse at what the U.S. population is
expected to be tomorrow (by 2050):
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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
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Statistical review
• Estimated current consumer purchasing
power of these segments:
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White/Caucasian: $6.3 trillion
African American: $646 billion
Hispanic: $581 billion
Asian/Pacific Islanders: $296 billion
Native American: $41 billion
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For further thought…
• 11.5% of the U.S. population is foreignborn, 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
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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
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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 minoritydriven (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%
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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
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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
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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
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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
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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
202.862.4229
•
For more information on the Fair Housing Act, see
http://www.hud.gov/offices/fheo/FHLaws/index.cfm
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