Diversity is Good Business

With minority power in America at over $1 trillion and minorities accounting for 40% of first-time homebuyers, it is good business for REALTORS® to develop the skills to reach the growing multicultural market of prospective homeowners.

As the 2000 U.S. Census has reported, America is more culturally diverse than at any other time in the nation's history. This diversity is now considered to be one of the country's greatest assets. It is not only affecting the way we view the world, it is affecting the economy of the world. So, meeting the needs of America's diverse consumer groups has become a pragmatic strategy for business of all kinds.

In this diverse marketplace, expanding home ownership must be about opening new doors - new doors to profitability for REALTORS® and new doors to minority citizens and immigrants who want to own their own homes. Multicultural outreach is good for minorities hoping to own their first home, the initiative offers extraordinary benefits to REALTORS® by substantially increasing their market share in this relatively untapped market.

Buying Power

(billions of dollars)

Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia
April 2002


The Suburbs Are Changing

Housing reports now indicate that minority population growth is spreading to the suburbs. A recent Brookings Institution report shows that minorities were responsible for the bulk of suburban population gains between 1990 and 2000 in 65 of the nation's 102 metropolitan areas with populations over 500,000. This rapid increase of minorities (many of whom are recent immigrants) in the suburbs will have a definite impact on future housing needs and homeownership.

  • According to the 2000 U.S. Census, Prince George's County, A Maryland suburb of Washington D.C., now has the largest population of middle-income African Americans in the United States.
  • The top three states for largest increase in Hispanic buying power (between 1990 and 2001) include Arkansas, Nevada, and North Carolina.

Homeownership Rates

According to Harvard University's Joint Center for Housing Studies, minorities will grow ever more important to housing markets over the next 10 years, accounting for an estimated two-thirds of net new households.

Minority Homeownership Rates
Share of Household Growth: 2000-2010
Total Growth= 11.7 million
Source: Harvard University Joint Center for Housing Studies

Other Market Indicators

  • Racial and ethnic minorities, who currently represent one-quarter of all U.S. households, will contribute to the majority of household growth over the next decade. By 2010, nearly three in ten thousand households will be headed by minorities.
  • Younger on average than whites, minorities in America will add 9.2 million households under age 50 and will lose only 1.7 million households over that age to death, institutionalization or other causes.
  • Minority population growth has become critical to sustaining housing markets, employment bases, school enrollments, and commerce in almost every large metropolitan city in the country.