Real Estate Niches Markets

Neglected real estate market niches, by Jim Woodard

Many Realtors and their associates are neglecting important and growing niches in today’s real estate market, according to Frances Martinez Myers, one of the speakers at the recent Realtors Conference & Expo. For example, immigrants represented 40 percent of new household formations between 2000 and 2005, and their numbers are still growing dramatically, it was noted. In the 25-to-34 age group, about 20 percent of the population is now foreign-born. And about 14 percent of recent homebuyers are immigrants. Those immigrants value homeownership as much as native born citizens.

It’s interesting that immigrants usually put more money down than native-borns. On average, they put down seven percent of the total price, compared with four percent by native-borns. And immigrants allocate more of their income for housing – 39 percent on average compared with 28 percent for natives. Hispanics are the largest and fastest-growing minority group. Their purchasing power is projected to equal the third largest economy in the hemisphere by 2010.

Single women is another major overlooked market niche. They now represent 20 percent of recent homebuyers – a 50 percent jump over the past eight years. Surprisingly, about 83 percent of single women homebuyers choose single-family homes rather than condos. About 28 percent of all households will be headed by women by 2010, it was projected. Women now own 23 percent of homes.