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 2,995,919 321,418,821 Native /1 2,751,452 278,128,449 Foreign-Born /2 244,467 43,290,372 Naturalized 95,513 20,697,103 Not a Citizen 148,954 22,593,269 Percent, Foreign-Born 8% 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 244,413 43,289,646 Born in Europe 22,758 4,789,662 Born in Asia 48,888 13,249,179 Born in Afria 8,416 2,062,257 Born in Oceania 8,306 238,663 Born in Latin America 147,966 22,111,409 Born in Northern America 8,079 838,476 Source: Census Bureau, ACS 2015, 1-year estimates, Table DP02 Foreign-Born Population in 2015 Born in Europe Born in Asia Born in Afria Born in Oceania Born in Latin America Born in Northern America 9.3% 11.1% 3.4% 4.8% 3.4% 0.6% 3.3% 1.9% 20.0% 30.6% 51.1% 60.5% Source: Census Bureau, ACS 2015, 1-year estimates 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 2,745,950 301,625,014 Speak English Only 2,338,256 236,908,935 Speak Language Other Than English 407,694 64,716,079 Spanish 280,260 40,045,795 Other Indo-European 49,795 11,137,271 Asian 56,519 10,501,131 Other Languages 21,120 3,031,882 As percent of Population, 5 years and over: Speak English Only 85.2% 78.5% Speak Language Other Than English 14.8% 21.5% Speak Spanish Other Than English 10.2% 13.3% Speak Other Indo-European Other Than English 1.8% 3.7% Speak Asian Other than English 2.1% 3.5% Speak Other Languages Other Than English 0.8% 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 10.2% 13.3% 1.8% 3.7% 2.1% 3.5% 0.8% 1.0% 85.2% 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 29.9 37.4 Native 28.7 35.9 Foreign-Born 37.8 42.6 Naturalized 45.8 50.2 Not a Citizen 34.4 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 20.5 18.3 Native 21.3 18.7 Foreign-Born 14.1 16.3 Naturalized 17.7 20.2 Not a Citizen 11.8 12.5 Percent With Graduate or Professional Degree Total Population, 25 years and over 10.2 11.0 Native 10.4 10.9 Foreign-Born 8.1 11.7 Naturalized 10.3 13.9 Not a Citizen 6.7 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 20.5 21.3 14.1 17.7 11.8 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 69.7 59,846 Native 71.5 61,543 Foreign Born 53.9 44,765 Naturalized 71.0 53,879 Not a Citizen 40.6 38,039 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 69.7 71.5 71.0 53.9 40.6 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 5,082 1,122,257 2006 5,749 1,266,129 2007 5,168 1,052,415 2008 6,087 1,107,126 10,000 2009 6,466 1,130,818 2010 6,085 1,042,625 5,000 2011 6,426 1,062,040 2012 5,932 1,031,631 0 2013 5,503 990,553 2014 6,166 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 94,699 32,003,435 2006 104,196 33,667,328 2007 121,771 37,149,651 2008 129,441 39,381,928 2009 108,182 36,231,554 2010 129,933 46,471,516 2011 135,495 46,471,516 2012 145,433 53,887,286 2013 157,969 61,052,260 2014 166,272 74,930,606 Source of data: Department of Homeland Security Yearbook of Immigration Statistics, 2014,Table 30. Admitted Non-Immigrants, 2005-2014 200,000 100,000 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 55,318 54,727 61,671 569,936 536,579 Business Traveler, Other /2 53,727 58,736 62,086 6,294,913 4,232,032 Students and exchange visitors/3 12,613 13,309 13,454 191,477 122,567 Temporary workers and families/4 6,611 7,485 6,995 418,753 297,735 Diplomats/other representatives/5 619 559 523 24,828 19,943 All other classes 380 302 268 94,253 38,153 Unknown 665 377 436 244 1,770 129,933 135,495 145,433 7,594,404 5,248,779 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%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0% 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 10.2% 2.3% 5.7% 0.4% 0.7% 0.0% 80.6% 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 6,166 Africa 501 Asia 2,162 Europe 406 North America 2,009 Oceania 239 South America 841 Unknown 8 COUNTRY Total 6,166 Mexico 1,471 Peru 275 Iraq 267 China, People's Republic 258 Vietnam 174 Philippines 161 India 157 Korea, South 141 Canada 138 Brazil 132 Nepal 120 Bhutan 112 El Salvador 112 Tonga 112 Iran 107 Burma 100 Argentina 98 Thailand 89 Venezuela 88 Guatemala 84 United Kingdom 84 Chile 78 Afghanistan 76 Somalia 74 Colombia 71 Japan 58 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 1,600 1,400 1,200 1,000 800 600 400 200 - Immigration by Origination Region in 2014 0% 1,471 4% 7% 8% 14% Top Countries of Origin in 2014 Number of Immigrants 275 267 258 Mexico Peru Iraq China, People's Republic 33% 35% 174 Vietnam 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) 38 Employment of Majority-Owned Affiliates Including Banks in 2014, in thousands* 11.3 6.8 4.6 4.3 3.3 2.7 3.5 1.5 * 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 19,260 13,282 Top 25 18,429 12,496 95.7 94.1 United Kingdom 6,043 3,037 31.4 22.9 Hong Kong 4,178 1,947 21.7 14.7 Canada 1,918 1,488 10.0 11.2 Mexico 487 854 2.5 6.4 China 608 841 3.2 6.3 Taiwan 533 710 2.8 5.3 Japan 563 546 2.9 4.1 Korea, South 243 377 1.3 2.8 Netherlands 165 364 0.9 2.7 Singapore 484 359 2.5 2.7 Germany 294 266 1.5 2.0 Switzerland 99 219 0.5 1.6 Australia 324 190 1.7 1.4 India 1,056 182 5.5 1.4 Italy 142 167 0.7 1.3 Thailand 507 148 2.6 1.1 France 104 129 0.5 1.0 Belgium 222 127 1.2 1.0 Philippines 132 113 0.7 0.8 Malaysia 84 98 0.4 0.7 Brazil 98 92 0.5 0.7 United Arab Emirates 50 69 0.3 0.5 Chile 47 66 0.2 0.5 Indonesia 34 59 0.2 0.4 Austria 15 47 0.1 0.4 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 11,150 12,093 Top 25 10,589 11,431 95.0 94.5 Mexico 4,409 3,337 39.5 27.6 China 1,656 2,228 14.8 18.4 Canada 1,599 1,821 14.3 15.1 Brazil 47 716 0.4 5.9 Taiwan 257 493 2.3 4.1 Peru 1,066 357 9.6 3.0 Colombia 1 328 0.0 2.7 Guatemala 549 309 4.9 2.6 Nicaragua 0 206 0.0 1.7 Germany 173 188 1.6 1.6 Japan 125 174 1.1 1.4 France 110 173 1.0 1.4 Vietnam 39 133 0.4 1.1 Italy 72 127 0.6 1.0 Korea, South 43 106 0.4 0.9 Chile 98 102 0.9 0.8 Honduras 1 98 0.0 0.8 United Kingdom 77 91 0.7 0.8 India 61 84 0.5 0.7 Malaysia 37 69 0.3 0.6 Austria 68 66 0.6 0.5 Hong Kong 18 62 0.2 0.5 Romania 25 57 0.2 0.5 Spain 31 54 0.3 0.4 Ireland 26 53 0.2 0.4 Source: Census Bureau, State Trade Data by Country National Association of REALTORS 11