What business opportunities might you be missing—opportunities that you pass by every day? You may be surprised.
Take, for example, the business potential found in the changing demographics across the U.S. and Canada.
The fact is, more than 35 percent of today’s buyers have a multicultural background, with foreign (non-citizen) buyers in the U.S. accounting for about 10 percent of existing-home sales—representing some $153 billion in residential property annually.
Here are some other stats with big business implications (as cited in NAHREP’s 2017 State of Hispanic Homeownership Report and the AREAA 2017-2018 State of Asia report):
- Hispanics have been responsible for 46.5 percent of net U.S. homeownership gains since 2000. This is also the only demographic to have increased its rate of homeownership in each of the past three years.
- Currently at 58.6 million, U.S. Hispanics account for more population growth in the U.S. than any other demographic.
- The Asian American/Pacific Islander (AAPI) population, at 22.5 million, is the fastest-growing demographic in the U.S. and Canada. In Canada, it’s also the largest minority demographic.
- With a median household income of $87,000, people who identify as AAPI, on average, have higher incomes than the general population; however, AAPI homeownership lags behind the national average by 6 percent.
It’s easy to see the opportunity. Here you have two growing and increasingly influential demographic groups, who, at the same time, are still largely underserved when it comes to homeownership.
Making It Happen
Much of the homeownership gap among minority groups can be attributed to cultural barriers. When working with these groups, real estate pros need to be prepared for issues that can arise with language barriers, loan options, home preferences, and more.
Fortunately, there are plenty of resources available. A good place to begin is with the Asian Real Estate Association of America (AREAA) and the National Association of Hispanic Real Estate Professionals (NAHREP).
The National Association of Gay and Lesbian Real Estate Professionals (NAGLREP) is yet another advocacy group to consider. The LGBT community is estimated to be 6-7 percent of the total U.S. adult population, and family formation within this community continues to be a driving force in the housing market.
For real estate professionals, these advocacy groups offer extensive education, networking and resources to connect with and serve their respective communities. RE/MAX is a proud sponsor of these organizations, which have a collective membership of more than 50,000 participants—and anyone can join.
The beauty of reaching out to underserved demographics is that it’s win/win. It opens up vast opportunities for real estate professionals to increase their business, while at the same time, it offers more families the ability to realize the universal dream of homeownership.
- Changing demographics and underserved minority groups represent a large population to serve and work with.
- More than 35 percent of buyers have a multicultural background, and foreign (non-citizen) buyers in the U.S. account for 10 percent of existing-home sales, purchasing more than $150 billion in residential property annually.
- Organizations such as NAHREP, AREAA and NAGLREP offer resources, education and networking opportunities to help real estate pros connect with and better serve different populations.
Adam Contos is CEO of RE/MAX, LLC. For more information, please visit www.remax.com.
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Making the Multicultural Connection