Thinking Globally

1
Thinking Globally

• Connecticut Association of REALTORS
• International Committee

2
Did You Know?

• A transaction with a client who was born or
  previously resided in a country outside the
  United States is an international transaction.

3
Foreign-Born Households

• Foreign-born households now account for just over
  10 percent of the U.S. population.

(Source Harvard University Joint Center for
Housing Studies)
4
Minority Household Growth
Over the next 10 years, 2/3 of all new households
formed will be minority and immigrant.
(Source Harvard University Joint Center for
Housing Studies)
5
Homeownership Rates

• Homeownership is more likely the longer
  immigrants remain in the U.S.
• After 20 years in the U.S., homeownership rates
  match or surpass native households.

(Source National Association of REALTORS)
6
Foreign-Born Housing Wealth

• Foreign-born homeowners have over 1.2 trillion in
  housing wealth 1/10 of the national housing
  wealth.
• The median house value of foreign-born first-time
  homebuyers is 150,000 50 higher than that of
  native-born first-time buyers.

(Source Harvard University Joint Center for
Housing Studies)
7
Foreign Investment

• Foreign investment in U.S. real estate is on the
  rise.
• Between 1997 and 2001, foreign investors invested
  nearly 3 trillion in the U.S.
• In the same period, foreign investors purchased
  6 billion of real property.

(Source National Association of REALTORS)
8
Did You Know?

• By 2050 there will be no majority race in the
  U.S.
• Salsa now out sells ketchup in the U.S.

• Richard Mendenhall, Past NAR President.
• Realty Trends 2004 Presentation

9
Trends in PopulationNationally

• 1 out of 8 persons are from a Hispanic
  background.
• 1 out of 25 persons are from an Asian background.

(Source NAR Expand Your Market)
10
In 30 Years

• 1 out of 5 persons will be from a Hispanic
  background.
• 1 out of 13 persons will be from an Asian
  background.

(Source NAR Expand Your Market)
11
In 50 Years

• Only 1 out of 2 will be from a white and European
  background.

(Source NAR Expand Your Market)
12
The Changing Faceof America

• Immigration is changing the face of America.

• Nine million legal immigrants came to the U.S.
  between 1991-2000, surpassing the previous peak
  of 8.8 million between 1901-1910.

13
Did You Know?
16 of REALTORS have conducted business in
another language.
14
Neighbor to Gateway States

• In 2000, the states with the largest percent
  foreign-born in their total populations were

• California (26.2)
• New York (20.4)
• New Jersey (17.5)
• Hawaii (17.5)
• Florida (16.7)
• Nevada (15.8)

• Texas (13.9)
• 8. District of Columbia (12.9)
• 9. Arizona (12.8)
• 10. Illinois (12.3)
• 11. Massachusetts (12.2)
• 12. Rhode Island (11.4)

(Source 2004 Migration Policy Institute.)
15
CT vs. The Nation

• About 806,000 people in CT are immigrants or the
  children of immigrants, 24 of the states
  population, slightly above the national average
  of 20.
• This is the 13th highest percentage in the nation.

(Source Table 4-1A, Nativity and Parentage of
the Population for Regions, Divisions and States
2000, 2000 Current Population Survey, U.S.
Census Bureau.)
16
Net Population Growth

• Immigrants are responsible for 32 of the net
  population growth in the State of Connecticut.

(Source 1990-2000 Census)
17
Minority Growth in CT

• Foreign-born residents now account for 11 of the
  total state population.1
• An additional 2.7 of the population are
  individuals born in Puerto Rico.2
• People born in Puerto Rico, who are US citizens
  are not counted in the census as immigrants.2

(Source 1John Christoffersen, Latest Census
Numbers Show Many Immigrants in Fairfield County
Associated Press, August 19, 2002 2U.S.
Census, 2000)
18
Immigrant Growth

• Some cities and towns have a higher number of
  foreign-born residents

• Stamford (30)
• Danbury (27)
• Bridgeport (21)
• Norwalk (20)
• Greenwich (19)

• Hartford (19)
• New Britain (18)
• Bloomfield (18)
• East Hartford (15)

(Source Connecticut Voices for Children)
19
Countries of Origin

• Jamaica
• Italy
• Poland
• Canada
• United Kingdom
• India
• Mexico
• Portugal
• China
• Taiwan
• Columbia

Some 367,967 immigrants (11 of our total
population) live in CT. The leading countries
of origin are
(Source Connecticut Voices for Children)
20
Did You Know?
While foreign language proficiency is helpful,
English is the international business language of
the world, which is particularly fortunate for
American Brokers.
21
In the Next 20 Years

• Between 2000 and 2025, the U.S. Census Bureau
  anticipates the number of foreign born
  individuals living in the State of CT to double.
• This expected growth of immigrants is the 12th
  greatest among the 50 states and the District of
  Columbia.

22
Foreign-Owned Businesses in CT

• About 1,200 foreign-owned companies have chosen
  to invest in CT, employ our citizens, set up
  operations and pay taxes here.1
• U.S. subsidiaries of foreign companies support
  more than 120,000 jobs in CT.2

(Source 1CT Business and Industry Association
2Organization for International Investment.)
23
Foreign-Owned Businesses in CT

• Bayer Corporation (Germany) Orange West Haven
• Perrier Group (France) Greenwich
• Konica Business Machines (Japan) Windsor
• Pirelli Armstrong Tire Corp. (Italy) New Haven
• Tetley, Inc. (United Kingdom) Shelton
• Guinness (Ireland) Stamford

(Source CT Department of Economic Development)
24
Did You Know?
The international market can create a large
referral network, particularly through word of
mouth. Once a REALTOR is recognized for
expertise in the international market, the
potential can be limitless.
25
International Trends

• What are the general international trends in your
  market?
• Who is doing international real estate
  transactions in your market?

26
Business Opportunities

• Examine ways to expand your knowledge about your
  communitys changing demographic base.
• Search for statistics from your
• Chamber of Commerce- Local Government
• School System

27
Impact of Diversity

• The international real estate market begins at
  your front door.
• Cultural differences are likely in transactions.
• Gain cross-cultural skills and experience.
• Access resources.

(Source NAR Expand Your Market)
28
Resources

• www.ctrealtor.com/internat
• www.realtor.org/international
• www.realtor.org/cipshome.nsf
• www.worldproperties.com
• www.realtor.org/cipshome.nsf/pages/icrea

29
www.ctrealtor.com/internat(Members Section)
30
www.worldproperties.com

• Created by the International Consortium of Real
  Estate Associations.
• Links up to nearly 3 million properties
  worldwide.
• Comprised of NAR and more than 25 leading
  national real estate Associations.

31
CIPS Designation

• CIPS Certified International Property
  Specialist.
• The CIPS designation is held by only 1,500
  practitioners worldwide.
• There are currently 35 CIPS designees from CT.
• Visit http//www.realtor.org/international for
  courses and membership information.

32
Did You Know?

• The Japanese drink very little wine, eat very
  little fat and suffer fewer heart attacks than
  the British or Americans.
• The French Italians drink lots of wine, eat
  lots of fat and suffer fewer heart attacks than
  the British or Americans.
• The Germans drink a lot of beer and eat lots of
  sausages and fats and suffer fewer heart attacks
  than the British or Americans.

33
Conclusion
Eat and drink what you like! Speaking English
is apparently what kills you.

• Richard Mendenhall, Past NAR President.
• Realty Trends 2004 Presentation