IAR International Working Group

1
Thinking Globally

• IAR International Working Group
• August 2004

2
Foreign-Born Households

• Foreign-born households now account for just over
  10 percent of the U. S. population.
• (Harvard University Joint Center for Housing
  Studies)

3
Trends in Population Nationally

• Currently
• 1 out of 8 persons are from a Hispanic
  background.
• 1 out of 25 persons are from an Asian background.
• (NAR Expand Your Market)

4
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.
• (NAR Expand Your Market)

5
Trends in Population

• In 50 years
• Only 1 out of 2 will be from a white and European
  background.
• (NAR Expand Your Market)

6
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.

7
Net Population Growth

• Immigrants are responsible for 58 of the net
  population growth in the State of Illinois.
• 1990-2000 census
• (Ill. Coalition for Immigrant and Refugee Rights)

8
Immigrants in Illinois

• 1.5 million immigrants live in Illinois.
• 17 of the states total population.
• 1.4 million immigrants live in the six-county
  Chicago area.
• Source Immigrants and the Illinois Labor Force
  the Potential Impact of Immigration Reform on
  Illinois Industries. Roosevelt University.

9
Immigration Statewide

• 30 of the 102 counties experienced greater than a
  100 increase in the number of immigrants from
  1990 to 2000.
• During the past decade, Illinois immigrants have
  increasingly migrated to suburban and rural
  environments.
• (Ill. Coalition for Immigration and Refugee
  Rights)

10
Immigrants and Illinois Labor Market

• 1 in 20 Illinois workers is an immigrant who came
  to the U. S. in the last 10 years.
• 877,000 immigrants worked in Illinois in 2000.
• (Immigrants and the IL Labor Force The Potential
  Impact of Immigration Return on Illinois
  Industries Roosevelt University)

11
Minority Growth in Illinois

• Top six counties with the highest number of
  immigrants are Cook, Kane, DuPage, Lake,
  Champaign and Cass Counties.

(Ill. Coalition of Immigrant and Refugee Rights)
12
Gateway State

• Illinois is considered a Gateway state for
  immigrants along with California, Florida,
  New Jersey, New York and Texas
• Chicago TribuneUS Census Reports

13
Highest Home Sales

• The five U.S. cities with the highest projected
  home sales to immigrants are in order
• New York
• Los Angeles
• Chicago
• Miami
• Newark

14
The Changing Face of Illinois

• Between 2010 and 2030, the
• U. S. Census Bureau anticipates immigration to
  increase by 1.4 million each year.

15
Immigrant Growth

• Since 1990 the immigrant population in Illinois
  has increased by nearly 61
• Illinois has had the fifth largest increase in
  the number of immigrants in the last census.
• (Ill. Coalition for Immigrant and Refugee Rights)

16
Countries of Origin

• Some 1.4 million immigrants live in metro
  Chicago.
• The leading countries are
• Mexico (582,028)
• Poland (137,670)
• India (76,931)
• (Metro Chicago Immigration Fact BookThe
  Institute for Metropolitan Affairs--Roosevelt
  University)

17
Outward Migration

• Behind California and New York, Illinois had the
  nations third largest net loss of residents to
  other states.
• Illinois drew 665,000 residents from other states
  from 1995 to 2000 but lost about 1 million.
• (Chicago Tribune)

18
Foreign-born Housing Wealth

• Foreign-born homeowners have over 1.2 trillion in
  housing wealth1/10 of the national housing
  wealth.
• The median house value of foreign born first-time
  homebuyers is 150,00050 higher than that of
  native-born first-time buyers.
• (Joint Center for Housing Studies Harvard
  University Aug. 2002)

19
Homeownership Rates

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

20
Minority Household Growth

• Over the next 10 years, 2/3 of all new households
  formed will be minority and immigrant.
• (Joint Center for Housing Studies, Harvard
  University)

21
Culture Differences

• Check out the IAR Web Site
• Link to Country Profiles of the CIPS Network
  (culture, economy, r.e. market, political
  environment)
• Link to Library of Congress Country Profiles
• California Association of REALTORScountry
  profiles--basic business culture

22
Illinois Businesses

• There are
• 5,821
• internationally-owned
• businesses
• statewide

23
Foreign Investment in IL

• 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 same period, foreign investors purchased 6
  billion of real property.
• (NAR)

24
What Makes Investment Attractive?

• Relative ease of investing
• Availability of a large supply of
  investment-grade real estate.
• U.S. has higher property turnover rate a proven
  effective edge against inflation.
• Some purchase real estate for strategic business
  purposes.
• (NAR)

25
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
• (NAR Expand Your Market)

26
Resources

• www.illinoisrealtor.org
• www.realtor.org/international
• http//www.realtor.org/cipshome.nsf/pages/AboutCIP
  S
• www.worldproperties.com
• http//www.realtor.org/cipshome.nsf/pages/icrea

27
www.illinoisrealtor.org
28
Worldproperties.com

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

29
CIPS Designation

• Certified International Property Specialist
• The CIPS designation is held by 1,000
  practitioners worldwide.
• Upcoming classes at www.realtor.org/cipshome.nsf/p
  ages/CipsCourses

30
Illinois Sister City Program

• 99 Sister City International agreements with 33
  countries on six continents through the IL Trade
  office.
• Exchange business, educational, cultural
  projects.
• Contact your city of residence to see if your
  city participates or check visit the
  international section of the IAR Web Site.

31
Local Association Action

• What can you see as the potential for
  international real estate in your market?
• Will your Board of Directors be open to the idea
  of an international section?
• Are your members ready for an international
  program?

32
International Trends

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

33
Achieve Membership Interest

• Consider offering the Expand Your Market course
  from NAR
• Newsletter articles
• Survey your membership what foreign languages
  are spoken who has international links

34
Business Opportunities

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

35
International Marketplace