Texas International Homebuyers Report

2013 Edition Release date: Sept. 17, 2013

Contact:

Stacy Armijo Pierpont Communications 512-448-4950 sarmijo@piercom.com

About the Texas International Homebuyers Report The Texas International Homebuyers Report is based on survey data from the 2013 Profile of International Home Buying Activity and the 2012 Business Data for Engaging in International Real Estate Transactions in Texas by the National Association of REALTORS, the 2011 American Community Survey by the U.S. Census Bureau and the 2011 Yearbook of Immigration Statistics by the U.S. Office of Immigration Statistics. The Texas Association of REALTORS distributes insights about the Texas housing market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends and more. To view the Texas International Homebuyers Report in its entirety, visit www.TexasRealEstate.com.

About the Texas Association of REALTORS With more than 80,000 members, the Texas Association of REALTORS is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com to learn more.

Texas International Homebuyers Report Executive Summary

September 2013

The Texas International Homebuyers Report showed that transactions by international homebuyers are a significant component to the Texas real estate industry, contributing over $6.13 billion to the Texas economy between March 2012 and March 2013. During this time, international homebuyers accounted for 6.3 percent of total U.S. home sales, totaling $82.5 billion in sales volume. Nine percent, or $6.13 billion, of this figure originated from Texas, tying the Lone Star State with Arizona as the third-largest state in the U.S. for international home sales.1 According to the report, homeownership rates increase with length of tenure in the U.S., rising from about 25 percent for persons who entered after 2000 to 67 percent among persons who entered before 1990.2 Combined with rising immigration rates (37 percent of immigrants in Texas entered in 2000 or later), these figures indicate that international home sales in Texas are likely to increase significantly over time. In addition, Texas has the third-largest immigrant population size and six of the top 50 metro areas for immigration in the U.S., accounting for nine percent of all immigrants who migrated to the U.S. and eight percent of all immigrants who became naturalized citizens in 2011.3 Other key statistics from the report include: From August 2011 to July 2012, 2.2 percent of Texas REALTORS reported international transactions for immigrants whose primary residence is abroad.2 51 percent of international homebuyers who purchased a home in Texas in 2012 originate from Latin America | Caribbean, followed by 15 percent from Asia | Oceania, 15 percent from Canada, 11 percent from Africa, and 8 percent from Europe.1 In Texas, homeownership among native residents is 64.2 percent, 75.2 percent among naturalized U.S. citizens, and 44.8 percent among non-U.S. citizens.

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Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security

Texas International Homebuyers Report

September 2013
Home sales by international homebuyers, by the numbers:
U.S. home purchases by international homebuyers were 6.3 percent or $68.2 billion of all U.S. home sales from March 2012 to March 2013. While a decrease by almost $20 billion than 2011, this is the second-highest figure for sales by international homebuyers in recent years. Texas accounted for nine percent ($6.13 billion) of all international home sales in 2012, up 2 percent from 2011. Texas is tied in the U.S. international Florida (23 percent). with Arizona as the No. 3 state for bringing in 9 percent of home sales, preceded by percent) and California (17

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Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security

Texas International Homebuyers Report

September 2013

Over half of international home sales in Texas in 2012 were from Latin America or the Caribbean.
51 percent of international homebuyers who purchased a home in Texas originate from Latin America | Caribbean, 15 percent from Asia | Oceania, 15 percent from Canada, 11 percent from Africa, and 8 percent from Europe. Not surprisingly, international homebuyers are most likely to purchase homes in geographical areas close to their home country, such as Texas and Arizona (Mexico) or California (Asia). This was echoed nationally, where 30 percent of homebuyers were 25-34 years old and 54 percent were first-time 4 homebuyers.

Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security

Texas International Homebuyers Report

September 2013

Texas is a hub for migration to the United States:

Of the 1,062,040 people who immigrated to the U.S. in 2011, nine percent (94,481) moved to Texas. Texas ranks No. 3 in the U.S. for total foreign-born population size and No. 7 for the percentage of foreign-born residents as part of a states total population. Six of the top 50 DMAs for immigration are in Texas, including Houston/Sugar Land/Baytown (No. 7), Dallas/Fort Worth/Arlington (No. 8), Austin/Round Rock (No. 26), El Paso (No. 27), San Antonio (No. 29), and McAllen/Edinburg/|Mission (No. 42).4
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Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security

Texas International Homebuyers Report

September 2013

Texas home sales by international homebuyers are set to increase significantly over the next 10 years.

Homeownership rates increase significantly the longer one lives in the U.S., rising from 25 percent for persons who entered in 2000 or later to 67 percent for those who entered before 1990 to almost 80 percent for those who have lived in the U.S. for nearly 40 years. In Texas, naturalized U.S. citizens have an 11 percent higher rate of homeownership (75.2%) than native citizens (64.2%). This data, combined with the rising immigration rates in Texas 37 percent of all immigrants in Texas migrated in 2000 or later indicate that home sales by international homebuyers will naturally increase as this new influx of immigrants becomes more likely to purchase a home.
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Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security

Texas International Homebuyers Report

Customer relationships and Texas REALTOR expertise are key components to international home sales:
International home sales are a small, but crucial, component to Texas real estate. Only 2.2 percent of Texas REALTORS surveyed reported a transaction with an international client in 2011.2 This compares to the 27 percent of U.S. REALTORS who reported a transaction with an international client in 2012.1 International homebuyers prefer to work with a REALTOR experienced in the language and culture of the potential purchaser. Cultural affiliation and knowledge of immigration and financing laws are important to a successful transaction.1 Solid relationships with international homebuyers are key. Of U.S. REALTORS who reported transactions with foreign-born clients, 54 percent of their clients were referred to them through friends, previous clients, and international and domestic referrals. 1

September 2013

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Sources: 1 2013 Profile of International Home Buying Activity, National Association of Realtors 2 2012 Business Data for Engaging in International Real Estate Transactions in Texas, National Association of Realtors 3 US Census Bureau, 2011 American Community Survey (ACS) 4 2011 Yearbook of Immigration Statistics, Office of Immigration Statistics, Homeland Security