Emerging Minority Groups That Deserve More Attention (Part 1)

Emerging Minority Groups That Deserve More Attention (Part 1)

Any group that represents more than 10% of the population deserves your immediate attention if you are in business.  How do you serve this community should be the question, because there is business opportunity there.  African Americans account for 13.8% of the Unites States population, while Hispanics comprise 17% of the U.S. population.  In real numbers, we are talking about 43 million African Americans and 53 million Hispanics living in the U.S.  By 2015, the purchasing power of African Americans will be at $1.1 Trillion and $1.3 Trillion for Hispanics.

Surprised?  You may be because you have ignored this community—especially if you are not African American or Hispanic.  Hispanics and African Americans remain two of the largest racial minorities in the country and their buying power is progressing at a similar rate.  I know the numbers are amazing, but I am even more surprised at the combined minority population projected purchasing power.  $2.4 trillion is a big number and represents a force to be reckoned with, and ultimately the reckoning will be on their terms (culture, language, and accommodation).  For years I have been saying that I need to learn Spanish and really understand their culture.  It is no longer an option for me - it is a requirement if I want to be in the real estate and lending business.  Dada la evidencia que se ha mencionado anteriormente, hay varias implicaciones que las empresas de bienes raíces, bancarias e hipotecarias deben tener en cuenta.  This two-part blog will expose the implications of this changing ethnic make-up.

As a businessman, veo oportunidad cuando miro a estos números.  Minorities value owning land more than anything else (especially African Americans living in the South).  I know African Americans who own farm land and homes that have been in their family for generations, dating back to slavery.  As Blacks and Hispanics grow in purchasing power they are going to want more and more land.  So why is it that very few real estate and lending organizations see the future, and start embracing diversity in a more meaningful way?  There are some examples of firms hiring African Americans but there are so few real estate firms (and especially banks) that hire African Americans that it’s somewhat of a spectacle when you see them.  “Look, he’s black!  OMG!  How did he get this job?”  I have said it myself because of my own experience of being the only African American at the firm, whether I was working in lending or banking, for just about my entire career, with few exceptions.  I was genuinely surprised to see an African American in the sea of white agents in a Real Estate office, or a Black loan officer in a Mortgage Bank.  That has been my experience in California for the last 33 years.

Hiring more African American and Hispanic people would be advantageous for any business because it opens up the business opportunity in the community.  Just imagine the incredible insights a multicultural, talented and well-trained employee can bring to your business.  Even though the numbers of African Americans and Hispanics may be small in some areas, we are living in a society today where people want to see a multicultural work place.  Affluence, wealth and the need to buy real estate transcends ethnicity and race.  Everybody loves green.

Diversity is good for business.  Hiring a diverse workforce can help real estate and lending organizations understand the cultural needs and solve the language barriers that exist.  Who would know African Americans better than African Americans, or Hispanics or Asians better than Hispanics or Asians?  The level of understanding becomes more precise, and the more precise your understanding of the client's needs are the higher your productivity and closing ratios will be.

A diverse workforce will be able to tap the wonderful opportunities for business in this untapped minority.  This is especially true for the real estate industry that relies heavily on human connections and interactions.  Let’s be honest:  minorities are a lot more at ease with a real estate agent or lender that is from their same minority group.  Being part of the same community establishes a common connection that only fellow people from the same culture can understand, so hiring more minority real estate agents and loan officers will bring in more business.

In addition, part of embracing diversity also means supporting their communities, organizations, schools, churches, newspapers, local businesses and non-profits.  Being members of a community is something all of us hold dearly.  It identifies us and makes us part of something bigger.  When companies understand the strong sense of community that minority groups possess and why they must support them, then they will see quickly how their support translates to new customers.

Part two of this blog will address how changing demographics is affecting marketing and advertising strategies.