Introduction

The purpose of this report is to present recent international-related data trends directly associated with Florida. Such data, properly gleaned, will present real estate opportunities with foreign nationals, foreign companies and foreign referral counterparts.

Global Presence

The exchange of goods and services across international borders has greatly increased, with the growth in international transactions far exceeding growth in domestic transactions in recent years. U.S. exports of goods and services increased 10.5 percent, while imports from foreign countries rose 12.8 percent in 2005. Such increases are three to four times higher than growth in the overall national economy. Due in part to the significant rise in international business activity, the flow of people across borders has increased, as well. At the same time, the demand for real estate - both residential and commercial – has been on the rise. Fast-growing international trade leads to relocation of foreigners in the United States, as well as U.S. businesses opening offices abroad. In short, conditions are ripe for engaging in international property brokerages.

Consider the number of foreigners (non-immigrants) arriving in Florida in 2004 by category:

• 4,039,359 foreigners for vacation
• 20,754 traders and investors
• 40,848 foreign students
• 43,735 foreign workers due to intra-company transfers
• 2,907 foreign workers related to NAFTA
• 518,032 foreigners for other business

Obviously, many of these foreigners will need rental housing, second homes, or commercial property in Florida. A recent study of home purchases in Florida revealed that 15 percent of all sales were made by foreigners - largely for vacation homes.¹

It is not only foreigners that will significantly impact international home buying. Many

U.S. residents will require a home abroad. Exports of products to Brazil and Canada from Florida increased 5 percent and 13 percent, respectively, in the past year. Third on the list of countries to which Florida products are exported is Venezuela. This increase in Florida exports may lead locally based companies to establish company representatives

1 NAR conducted a survey of REALTORS® in Florida in 2005 to better understand the extent of non-U.S. resident homebuyers, why those buyers purchased U.S. homes, and what types of properties they bought and for what purpose. Of the REALTORS® who participated in the survey, 87 percent reported that they did at least one home sale transaction with international buyers. Two thirds – 66 percent – of those REALTORS® who brokered foreign-buyer purchases noted that one to four of all their transactions were with international clients.

and sales personnel in those countries. Florida real estate professionals may decide that it’s time to set up referral networks with counterparts in Brazil, Canada and Venezuela.

Parts and accessories for automatic data processing machines and units were the top export product for Florida. Savvy real estate professionals may want to visit the human resource departments of the companies producing these exports to let them know about relocation services offered in your professional global network.

Immigrants to Florida

Immigration to the United States soared in the past two decades, which likely will lead to many more home purchases in the coming decade.² The U.S. population grew by roughly 30 million people during the last decade of the 20th century and by another 12 million in the last four years. The strong increase in immigration contributed to nearly 40 percent of the rise in U.S. population since 1990.

In Florida, 75,644 newly admitted legal immigrants arrived in 2004. Most came from Cuba (14,992). Other top countries of origin include:

• Haiti (6,745)
• Colombia (6,086)
• Jamaica (4,074)
• Venezuela (2,916)
• Mexico (2,704)

Real estate professionals may want to consider assisting, participating or setting up a network partner with these communities to open up business opportunities.

In 2004, 43,795 immigrants to Florida became U.S. citizens. Natives of Cuba led with the highest number (9,033) of newly naturalized citizens in the state last year. Other top countries represented include:

• Jamaica (3,408)
• Haiti (3,225)
• Colombia (3,085)
• Nicaragua (1,498)
• The Dominican Republic (1,354)

The new citizens and immigrants, brought the total number of naturalized citizens in Florida to 1,371,265 (8 percent of the population) and 1,670,753 non-citizens (10 percent of the population) in 2004.

² There are contentious issues relating to swelling illegal immigration and assimilation, and this paper does not attempt to delve into this difficult topic.

Immigration boosts the residential housing market for the simple reason that people need a home in which to live. So it should not be surprising that dynamic housing markets of recent years have been in those regions with significant immigrant populations. The fast-growing regions of Las Vegas, Phoenix, Washington D.C. and much of Florida have seen strong housing demand – and a significant run-up in home prices – due in no small part to the fact that these markets have strong immigrant populations.³

Also consider what happens to housing markets when there is no immigration. For example, home prices in Japan have been stagnant for the past 20 years. One reason is that the country’s population has been virtually unchanged during that same time period. The same stagnation is also present in East Germany (where many have left for West Germany). Similar situations can be found in U.S. areas such as Elmira, NY and Danville, IL.

The homeownership rate of foreign-born households who came to the U.S. in the past five years is only 18 percent. The ownership rate then steadily rises over time.

Naturally, due to language, cultural and institutional adjustments, homeownership among recent immigrants lags behind that of native-born Americans and the population as a whole. However, obtaining U.S. citizenship quickly raises the odds of becoming a homeowner. In fact, among households who entered the country more than 30 years ago, the homeownership rate surpasses that of the national average, with 78 percent of

3 A study by the Philadelphia Federal Reserve Bank showed that home prices in immigration-heavy neighborhoods rise much more slowly than other neighborhoods in the local region. That is, the “there goes the neighborhood” reaction may be at work as established residents flee an area and newcomers move in. However, home prices in metro regions with a high concentration of immigrants in general rose at a significantly faster clip than those metro regions with little immigration. More people translates into more housing demand.

foreign-born U.S. residents owning a home - far higher than the national homeownership rate of 69 percent.

REALTORS® can seize the opportunity and help close the early-year homeownership gap through counseling and homebuyer education programs for their foreign-born clients. Many REALTORS® have already realized the potential business opportunities. Over the last five years, almost half of NAR members indicated that they have participated in a transaction involving an international element, and this trend will inevitably increase.

Information on NAR International and WorldProperties.com

NAR’s international program has a long and progressive history, demonstrating the foresight of NAR leaders over a number of decades. Through carefully developing and nurturing international bilateral and multilateral relationships worldwide, NAR has laid a solid foundation for participation in today’s global marketplace. NAR’s International Network – today 70 partner associations in more than 50 countries – demonstrates the value of NAR’s international leadership and emphasizes it commitment to promote business development opportunities for U.S. members. NAR’s International Mission statement is as follows: “Increase REALTORS®’ (commercial and residential) ability and opportunity to do business at home and abroad in an increasingly global/multicultural real estate environment.”

Numerous products and resources have been developed to assist NAR members and REALTOR® Associations in including a global market component in their business plan/member services program. These resources include:

• NAR International home page at Realtor.org – Best general resource for information on NAR international programs and services –
• www.realtor.org/international
• Expand Your Market Course – Turn-key course to introduce agents/brokers to the global real estate market. Eligible for continuing education approval. More information at http://www.realtor.org/cipshome.nsf/pages/eym
• Certified International Real Estate Specialist (CIPS) designation program and business network – Provides introductory and advanced training for real estate professionals and administrators, along with business development/networking tools, resources and events. Access course descriptions, schedule, benefits and other information on CIPS from NAR International home page,
• www.realtor.org/international
• Monthly International eReport (Electronic Newsletter) – Available free to any NAR member. Sign up via “Subscribe to News” link on home page at
• www.realtor.org
• Pre-packaged Meeting Tool Kits for Broker Meetings – Series of short, informational training modules on global market topics; ideal for use in sales agent meetings, local council meetings, etc. Downloads at
• http://www.realtor.org/cipshome.nsf/pages/toolkits
• International Speaker Cadre & Presentation database – Resource for REALTOR® Associations looking for a speaker and/or a presentation on a topic

related to global real estate business. Group seeking a speaker contacts and deals

directly with the speaker. Access the database at

http://www.realtor.org/cipshome.nsf/pages/speakers

• NAR International Association Network – NAR partners with 70 national associations in more than 50 countries—all of whose members subscribe to a code of conduct similar to the NAR Code of Ethics. Review the full list of foreign partners, NAR’s liaisons to these groups, and/or access the association directly at

http://www.realtor.org/intlnet.nsf/coopassocmain

The International Consortium of Real Estate Associations (ICREA)/WorldProperties.com is the centerpiece of NAR’s International multilateral strategic initiative and can be found online at www.WorldProperties.com. NAR is a founding member and co-chair of the 25-member alliance of leading national real estate associations, which collectively represent more than 2 million real estate professionals worldwide and 3 million property listings. WorldProperties.com assists consumers in locating broker assisted properties outside their country and in locating a qualified real estate professional. Key site features include a distinctive resale property advertising service, links to 3 million residential and commercial property ads, a portal featuring high quality resort/new developments, a cross border client referral system, comparative business practice profiles, and more. It is the only organization of its kind and is constantly looking to the future to provide its members with new products and services that will help them more effectively compete in increasingly global real estate environments and keep the broker central to the real estate transaction.

For more information on NAR’s International programs, please email us at NARGlobe@realtors.org or visit us online at www.Realtor.org/international.

Florida

Population Demographics in Florida

Florida

Immigration and Naturalization Trend in Florida

Year Admitted Immigrants Naturalization

1995 62,023 31,372 1996 79,461 123,368 1997 82,318 28,768 1998 59,965 30,926 1999 57,484 67,567 2001 104,715 48,752 2002 90,819 44,792 2003 52,969 35,170 2004 75,644 43,795

Source : Office of Immigration Statistice, 2004 Yearbook of Immigration Statistics

Florida

Florida Immigrants in 2004 by Country of Birth

Florida Immigrants by Region

North America 50%

ceania 0%

Africa 3% Europe 10%

Europe Asia Africa Oceania North America South America

Florida

Source : Office of Immigration Statistice, 2004 Yearbook of Immigration Statistics

Florida Naturalization by Region

North America 54%

Oceania 0%

Africa 3%

Asia 13%

South America 19%

Europe Asia Africa Oceania North America South America

Europe 11%

Source : Office of Immigration Statistice, 2004 Yearbook of Immigration Statistics

Florida

Florida Exports by Product* Unit: $ million

Source : Census Bureau

* The U.S. Census Bureau assigns detailed names to export products. For example, products listed as digital monolithic integrated circuits are essentially semiconductors. To

maintain the integrity of government's export records, this report follows the terminology used by the Census. ** (Z) means over 500% growth.

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Florida

Florida Exports by Trading Partner Country Unit: $ million