Business Data For Engaging in International Real Estate Transactions in National Association of REALTORS Research Division November 2016
Table of Contents Introduction 1 Table 1. Population by Place of Birth 2 Table 2. Foreign-born Population 2 Table 3. Language Spoken at Home 3 Table 4. Median Age (years) 4 Table 5. Educational Attainment 4 Table 6. Home Ownership and Median Income 5 Table 7. Persons Obtaining Permanent Residence Status 6 Table 8. Non-Immigrant Admissions 7 Table 9. Non-Immigrant (I-94) Admission Classs 7 Table 10. Immigration by Origination Region and Country 8 Table 11. Employment of Multinational Companies 9 Table 12. Top 25 Export Destinations 10 Table 13. Top 25 Import Origins 11
Billions Introduction In its 2016 National Association of REALTORS Profile of International Activity in Residential Real Estate, NAR estimated that foreign buyers purchased $102.6 billion of residential property from April 2015 March 2016 which is 7 percent of the $1.2 trillion of total existing home sales during the same period. Foreign buyers who reside outside of the United States (Type A) accounted for 41 percent of the dollar volume, while foreign buyers who are recent immigrants (less than two years) or who are temporarily residing in the United States for business, work, education, or vacation purposes (Type B) accounted for an even larger fraction, 59 percent. 120 Dollar Volume of Foreign Buyer Residential Property Purchases 100 80 60 40 49.4 45.5 59.1 41.2 33.2 33.4 20 33.2 41.2 34.8 46.7 54.5 43.5 0 2011 2012 2013 2014 2015 2016 Non-resident (Type A) Resident (Type B) Note: Based on transactions in the 12 months ending March of each year. The continued expansion of trade and investment among countries and the accompanying mobility and migration of people opens greater opportunities for transacting with international clients. Cultural affinity, foreign language capabilities, and an awareness of business trends are important in cultivating relationships with international clients and bringing the transaction to a successful conclusion. This Report provides state-level business and economic data that can be used to enhance the knowledge and expertise of those seeking to conduct and assist international real estate transactions with non- residents and recent immigrants to the United States. NAR s Commercial & Global Services department has the expertise to address specific questions related to international transactions as well as the ability to direct specific questions to other NAR resources. For more data and information, REALTORS are encouraged to visit NAR s global pages at http://www.realtor.org/global and the NAR Research webpage at http://www.realtor.org/research-andstatistics.
Business Data for Engaging in International Real Estate Transactions in Table 1. Population By Place of Birth in 2015 Total Population, by Place of Birth 1,654,930 321,418,821 Native /1 1,560,566 278,128,449 Foreign-Born /2 94,364 43,290,372 Naturalized 35,909 20,697,103 Not a Citizen 58,455 22,593,269 Percent, Foreign-Born 6% 13% /1 The The Census Bureau uses the terms native and native born to refer to anyone born in the, Puerto Rico, a Island Area, or abroad of a citizen parent or parents. /2 The Census Bureau uses the term foreign born to refer to anyone who is not a citizen at birth, naturalized citizens, lawful permanent residents (immigrants) present in the, temporary migrants such as foreign students), humanitarian migrants (such as refugees and asylees), and persons illegally present in the United States. Source: Census Bureau, ACS 2015, 1-year estimates, Table DP02 Table 2. Foreign-Born Population in 2015 Total Foreign-born Population, Excl. Born at Sea 94,364 43,289,646 Born in Europe 14,719 4,789,662 Born in Asia 18,782 13,249,179 Born in Afria 2,647 2,062,257 Born in Oceania 1,096 238,663 Born in Latin America 52,690 22,111,409 Born in Northern America 4,430 838,476 Source: Census Bureau, ACS 2015, 1-year estimates, Table DP02 Foreign-Born Population in 2015 Born in Europe 15.6% 11.1% Born in Asia 19.9% Born in Afria 2.8% 4.8% Born in Oceania 1.2% 0.6% Born in Latin America Born in Northern America 4.7% 1.9% Source: Census Bureau, ACS 2015, 1-year estimates 30.6% 55.8% 51.1% National Association of REALTORS 2
Business Data for Engaging in International Real Estate Transactions in Table 3. Language Spoken at Home in 2015 Population, 5 years and over 1,543,083 301,625,014 Speak English Only 1,384,995 236,908,935 Speak Language Other Than English 158,088 64,716,079 Spanish 117,236 40,045,795 Other Indo-European 18,145 11,137,271 Asian 14,038 10,501,131 Other Languages 8,669 3,031,882 As percent of Population, 5 years and over: Speak English Only 89.8% 78.5% Speak Language Other Than English 10.2% 21.5% Speak Spanish Other Than English 7.6% 13.3% Speak Other Indo-European Other Than English 1.2% 3.7% Speak Asian Other than English 0.9% 3.5% Speak Other Languages Other Than English 0.6% 1.0% Source: Census Bureau, ACS 2015, 1-year estimates, Table DP02 Language Spoken at Home in 2015 Speak English Only Spanish Other Indo-European Asian Other Languages 7.6% 13.3% 1.2% 3.7% 0.9% 3.5% 0.6% 1.0% 89.8% 78.5% Source: Census Bureau, ACS 2015, 1 year estimates. National Association of REALTORS 3
Business Data for Engaging in International Real Estate Transactions in Table 4. Median Age (years) in 2010-2014 Median Age Total Population 35.2 37.4 Native 34.8 35.9 Foreign-Born 39 42.6 Naturalized 47.2 50.2 Not a Citizen 35 36.8 Source: Census Bureau, ACS 2010-2014, 5-year estimates, Table S0501 Table 5. Educational Attainment in 2010-2014 Percent With Bachelor's Degree Total Population, 25 years and over 17.4 18.3 Native 18.0 18.7 Foreign-Born 9.8 16.3 Naturalized 13.8 20.2 Not a Citizen 7.3 12.5 Percent With Graduate or Professional Degree Total Population, 25 years and over 8.0 11.0 Native 8.2 10.9 Foreign-Born 6.4 11.7 Naturalized 7.8 13.9 Not a Citizen 5.4 9.6 #N/A - Data not available Source: Census Bureau, ACS 2010-2014, 5-year estimates, Table S0501 Percent with Bachelor's Degree By Citizenship Status in 2010-2014 17.4 18.0 13.8 9.8 7.3 Total Population Native Foreign-Born Naturalized Not a Citizen National Association of REALTORS 4
Business Data for Engaging in International Real Estate Transactions in Table 6. Home Ownership and Median Household Income in 2010-2014 Home Ownership Rate Median HH Income (in %) (in $) Total 69.2 47,334 Native 69.9 48,250 Foreign Born 58.7 37,668 Naturalized 74.6 43,972 Not a Citizen 47.0 32,928 Total 64.4 53,482 Native 66.5 54,224 Foreign Born 51.6 49,221 Naturalized 66.0 58,993 Not a Citizen 34.1 40,064 #N/A - Data not available Source: Census Bureau, ACS 2010-2014, 5-year estimates, Table S0501 Home Ownership Rates By Citizenship Status in 2010-2014 69.2 69.9 58.7 74.6 47.0 Total Native Foreign Born Naturalized Not a Citizen National Association of REALTORS 5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Business Data for Engaging in International Real Estate Transactions in Table 7. Persons Obtaining Permanent Residence Status 2005 2,768 1,122,257 2006 2,377 1,266,129 2007 2,044 1,052,415 2008 2,766 1,107,126 4,000 2009 3,120 1,130,818 2010 2,556 1,042,625 2,000 2011 2,602 1,062,040 2012 2,428 1,031,631 0 2013 2,120 990,553 2014 2,202 1,016,518 Source of data: Department of Homeland Security Yearbook of Immigration Statistics, 2014,Table 4. Admitted Immigrants, 2005-2014 Table 8. Non-immigrant Admissions 2005 24,433 32,003,435 2006 26,975 33,667,328 2007 29,401 37,149,651 2008 31,089 39,381,928 2009 27,919 36,231,554 2010 30,337 46,471,516 2011 34,121 46,471,516 2012 35,330 53,887,286 2013 41,208 61,052,260 2014 42,825 74,930,606 Source of data: Department of Homeland Security Yearbook of Immigration Statistics, 2014,Table 30. Admitted Non-Immigrants, 2005-2014 60,000 40,000 20,000 0 National Association of REALTORS 6
Business Data for Engaging in International Real Estate Transactions in Table 9. Non-immigrant admissions (I-94 only) 2010 2011 2012 2013 2014 Business Traveler,Visa waiver /1 12,345 13,823 14,180 15,293 14,730 Business Traveler, Other /2 8,825 10,602 10,771 15,186 16,093 Students and exchange visitors/3 3,783 4,376 4,803 5,401 6,327 Temporary workers and families/4 4,385 4,566 4,889 4,592 4,904 Diplomats/other representatives/5 631 462 413 547 508 All other classes 176 154 148 130 243 Unknown 192 138 126 59 20 30,337 34,121 35,330 41,208 42,825 46,471,516 46,471,516 53,887,286 61,052,260 74,930,606 1 Includes GB, GMB, GT, GMT, WB, and WT admissions. 2 Includes B1, B2 and a limited number of Border Crossing Card (BCC) admissions. 3 Includes principals, spouses, and children (F,J,M admissions). 4 Includes principals, spouses, and children (CW1, E, H,I,L,O, P,Q, R, TD and TN admissions). 5 Includes principals, spouses, and children (A, G, Nadmissions). Notes: Admissions represent counts of events, i.e., arrivals, not unique individuals. The majority of short-term admissions from Canada and Mexico are excluded. Source: Department of Homeland Security, Yearbook of Immigration Statistics, 2014,Table 30. Non-immigrant Admissions in 2014 0.0% 5.0% 10.0%15.0%20.0%25.0%30.0%35.0%40.0% Business Traveler,Visa waiver /1 Business Traveler, Other /2 Students and exchange visitors/3 Temporary workers and families/4 Diplomats/other representatives/5 All other classes Unknown 1.2% 0.6% 0.0% 11.5% 14.8% 34.4% 37.6% National Association of REALTORS 7
Number of immigrants Business Data for Engaging in International Real Estate Transactions in Table 10. Immigration by Origination Region and Country in 2014 REGION Total 2,202 Africa 330 Asia 827 Europe 154 North America 775 Oceania 18 South America 90 Unknown 8 COUNTRY Total 2,202 Mexico 663 Iraq 119 China, People's Republic 105 Burma 96 Congo, Democratic Republic 83 Philippines 82 Bhutan 67 India 66 Afghanistan 50 Ethiopia 47 Canada 42 Thailand 39 Nepal 38 Vietnam 34 Peru 30 Russia 29 Eritrea 27 United Kingdom 24 Colombia 23 Korea, South 23 Somalia 20 Brazil 18 Malaysia 17 Nigeria 17 Romania 17 Zimbabwe 17 D-Data withheld to limit disclosure Source: Department of Homeland Security Yearbook of Immigration Statistics, 2014,Supplemental Table 1. Africa Asia Europe North America Oceania South America Unknown 700 600 500 400 300 200 100 - Immigration by Origination Region in 2014 663 1% 0% 4% 7% 15% Top Countries of Origin in 2014 Number of Immigrants 119 105 96 83 35% 38% National Association of REALTORS 8
Business Data for Engaging in International Real Estate Transactions in Table 11. Employment of Majority-Owned Affiliates of Foreign Multinational Companies Operating in Total Employed (thousands) 16 Employment of Majority-Owned Affiliates Including Banks in 2014, in thousands* 3.7 2.9 2.5 2.6 1.9 1.2 1.1 0.2 * Value of 0 in the chart indicates that the data was suppressed. Source: Bureau of Economic Analysis, Foreign Direct Investment in the (FDIUS), Majority-Owned Affiliates Table on Employment by State and Country,2007-2014 National Association of REALTORS 9
Business Data for Engaging in International Real Estate Transactions in Table 12. Top 25 Export Destinations of the State Based on 2015 Dollar Value (in Millions) Country 2012 Dollar Volume 2015 Dollar Volume 2012 Share 2015 Share World 6,120 4,296 Top 25 5,900 4,116 96.4 95.8 Canada 1,331 977 21.8 22.7 China 468 560 7.6 13.0 Taiwan 755 529 12.3 12.3 Singapore 963 414 15.7 9.6 Japan 302 289 4.9 6.7 Mexico 257 264 4.2 6.1 Korea, South 572 221 9.4 5.1 United Kingdom 78 125 1.3 2.9 Malaysia 176 123 2.9 2.9 Hong Kong 341 86 5.6 2.0 Netherlands 71 72 1.2 1.7 Philippines 65 65 1.1 1.5 Australia 108 64 1.8 1.5 Brazil 59 62 1.0 1.4 France 140 45 2.3 1.1 Germany 31 43 0.5 1.0 Indonesia 49 32 0.8 0.7 India 20 28 0.3 0.6 Thailand 24 24 0.4 0.6 Spain 24 22 0.4 0.5 Chile 15 20 0.3 0.5 Israel 17 17 0.3 0.4 Peru 15 13 0.3 0.3 New Zealand 14 12 0.2 0.3 Denmark 2 10 0.0 0.2 Source: Census Bureau, State Trade Data by Country National Association of REALTORS 10
Business Data for Engaging in International Real Estate Transactions in Table 13. Top 25 Import Origins of the State Based on 2015 Dollar Value (in Millions) Country 2012 Dollar Volume 2015 Dollar Volume 2012 Share 2015 Share World 5,148 5,166 Top 25 5,025 5,065 97.6 98.0 China 702 1,583 13.6 30.6 Canada 952 914 18.5 17.7 Taiwan 554 842 10.8 16.3 Singapore 1,013 503 19.7 9.7 Japan 484 431 9.4 8.3 Korea, South 388 178 7.5 3.5 Mexico 181 137 3.5 2.6 Germany 59 63 1.2 1.2 France 20 43 0.4 0.8 Malaysia 16 43 0.3 0.8 Greece 55 42 1.1 0.8 Vietnam 25 32 0.5 0.6 Israel 39 31 0.8 0.6 New Zealand 41 29 0.8 0.6 Netherlands 12 28 0.2 0.5 United Kingdom 17 28 0.3 0.5 Italy 359 26 7.0 0.5 Austria 20 24 0.4 0.5 Thailand 5 16 0.1 0.3 Australia 24 15 0.5 0.3 India 18 14 0.3 0.3 Chile 8 13 0.1 0.2 Indonesia 16 11 0.3 0.2 Denmark 12 10 0.2 0.2 Hong Kong 7 9 0.1 0.2 Source: Census Bureau, State Trade Data by Country National Association of REALTORS 11