Allan Oakley
03-24-2006, 02:23 AM
This article was written by Lisa McDuffie,communications manager of the Orlando
Regional Realtor® Association. November,2005
INTERNATIONAL HOMEBUYERS ARE MAKING A HUGE IMPACT ON
THE REGION’S ECONOMY.
HOMEBUYERS FROM COUNTRIES around the world are buying U.S. homes, contributing to our nation’s housing boom. And, many are landing in Central Florida, according to a new study by the National Association of Realtors®.The 2005 Profile of International Homebuyers
in Florida shows that 23 percent of all international homebuyers who bought residential
property in Florida (15 percent of all Florida homebuyers) did so in the Orlando area. These
buyers contributed an estimated $1.86 billion to the area’s economy. And their economic contributions don’t stop with the purchase of a home.” When international homebuyers purchase
residential property, they add a significant need for housing, given the population influx,”
explains Ken H. Johnson, Ph.D., faculty director of the Jerome Bain Real Estate Institute at Florida International University. “This pool of available buyers works to stimulate the supply of homes and also helps to stabilize the pricing of both residential and commercial properties at their present levels. In other words, the demand caused by international buyers helps protect Orlando’s real estate values from a decline.”
SECOND HOMES
International buyers contribute to Orlando’s tourism-driven economy. More than 38 percent
of foreign buyers purchase their properties as vacation homes, and another 37 percent purchase
their properties as rental property for investment. “Those vacationers contribute in the usual
manner to Orlando’s local businesses by visiting the theme parks and patronizing restaurants and
shops,” says Johnson. “In addition, international buyers must purchase the goods and services
required to furnish and maintain their homes.”
WHY RELOCATE TO CENTRAL FLORIDA?
According to the most recent information from the U.S. Census Bureau, Florida is the
fastest-growing state in the country. U.S. residents have been relocating here for
various reasons — vacation, retirement and change of lifestyle. Foreign homebuyers are
following those U.S. residents. Nearly a third chose the Central Florida regions of Orlando and
Tampa-St. Petersburg. While Florida’s international homebuyers came from more than 100
countries in all areas of the world, the majority of all home purchases by foreign buyers in
Florida, 58 percent, were made by Europeans. More than half of the buyers from Europe were based in the United Kingdom. In fact, the United Kingdom was the No. 1 country of origin for foreign homebuyers, accounting for one-third of all international purchasers. Eastern European countries, which include Russia and the former Soviet Republics, currently account for 3 percent of international homebuyers.
British homebuyers strongly favor purchasing in the Orlando area. Almost half of buyers from
the United Kingdom purchased properties in Orlando and the vicinity. The next-most-popular
choice was Naples-Fort Myers, followed by Tampa-St. Petersburg.
THEY SPEND MONEY
The majority of foreign homebuyers bought a single-family detached house or a town house
that cost between $140,000 and $400,000. The median price paid for a home was $299,000. By
comparison, the average median price paid for an Orlando area home by U.S. residents ( May 2004 and May 2005 the months the study looked at) was $190,000,
This data according to the Orlando Regional Realtor® Association..
ON LOCATION
More than half of international homebuyers financed their Florida home purchase with a mortgage, but 36 percent of them paid cash. This is significantly different from U.S. domestic homebuyers, only 8 percent of whom paid cash and 92 percent of whom financed some part of the purchase price. For all Florida homebuyers in 2004, 90 percent used a mortgage to finance the purchase of their home, and 10 percent paid cash. One possible explanation for this disparity
in the use of cash to buy a home could be that because international buyers reside outside the United States, they are looking for less risk in their U.S. home investments to ensure against
price declines. At the same time, cash purchases reduce the foreclosure risk among this group of buyers. And lower foreclosure risk, in turn, reduces the possibility of a price decline.
However you look at it, foreign buyers are contributing in spades to the Central Florida economy.
Results of the 2005 Profile of International Homebuyers in Florida were based on 986 Florida Realtors® who closed 1,844 home sales transactions to non-US. residents in the
preceding 12 months. Analysis of the results indicates that international buyers of U.S. homes
in Florida during the period May 2004 to May 2005 resided in more than 100
different countries of varied population and geographic sizes, various cultures
and located in all regions of the world. For a list of Realtors® who specialize in international real estate, visit www.OrlandoInternationalCouncil.com.
Buyers Profile:
A United Kingdom 33.3%
A Eastern Europe 3.0%
A Western Europe 21.2%
A Central America and Caribbean 8.1%
A Asia 4.0%
A Canada 7.1%
A South America 21.2%
A Other (Africa, Australia,
New Zealand) 2.0%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~
THEY CAME. THEY SHOPPED. THEY DINED. They experienced our world-famous attractions. and they did it in record numbers. Nearly 48 million visitors arrived in Orlando in 2004, a 6.1
percent increase over 2003, setting an overall record for the number of visitors to the Orlando
area, according to the Orlando/Orange County Convention & Visitors Bureau Inc. (Orlando CVB).
In fact, one in every four domestic travelers vacationing in Florida last year visited Orlando,
which translates into business opportunities for all. Want even better news? The Orlando CVB
expects the growth in visitation to continue through at least 2008.
“Our most recent visitation forecasting model shows that we will experience steady growth,
although at a more conservative pace, through 2008,” explains Daryl Cronk, senior economist for
the Orlando CVB. The forecast for 2005 visitation shows the destination breaking the 50 million
mark for the first time.
INTERNATIONAL VISITORS ON THE RISE
The most significant growth in 2004 was in the international market, which saw a 12.4 percent
increase — its first increase since peaking in 2000. While the United Kingdom continues to be
Orlando’s top international market. Members of Orlando’s tourism industry are pleased to
see signs of improvement in the Latin American market. While the rebound in international travel
is significant, international visitors represent only 10 percent of all Central Florida visitors.
Americans still constitute the largest segment of visitors to the region. The Orlando CVB will
be rolling out a destination branding campaign in 2006. Look for ads in popular magazines
such as Oprah, Family Circle, Food & Wine, Travel + Leisure, Golf Magazine, Family Fun
and many more. The Orlando CVB is focusing its 2006 international
marketing strategy to capitalize on the potential being shown in select markets. With
integrated marketing programs in the United Kingdom/Ireland and Canada, the Orlando CVB
is hoping to expand visitation from those key markets. Your company can piggyback on these
efforts to get the maximum mileage out of your marketing dollar. “We will be [using] travel trade communications, promotions and publicity to generate visibility for Orlando in markets such as Brazil, Colombia, France, Germany, Italy, Japan, Mexico and Spain,” explains Jose Estorino, the Orlando CVB’s senior vice president of marketing.
Regional Realtor® Association. November,2005
INTERNATIONAL HOMEBUYERS ARE MAKING A HUGE IMPACT ON
THE REGION’S ECONOMY.
HOMEBUYERS FROM COUNTRIES around the world are buying U.S. homes, contributing to our nation’s housing boom. And, many are landing in Central Florida, according to a new study by the National Association of Realtors®.The 2005 Profile of International Homebuyers
in Florida shows that 23 percent of all international homebuyers who bought residential
property in Florida (15 percent of all Florida homebuyers) did so in the Orlando area. These
buyers contributed an estimated $1.86 billion to the area’s economy. And their economic contributions don’t stop with the purchase of a home.” When international homebuyers purchase
residential property, they add a significant need for housing, given the population influx,”
explains Ken H. Johnson, Ph.D., faculty director of the Jerome Bain Real Estate Institute at Florida International University. “This pool of available buyers works to stimulate the supply of homes and also helps to stabilize the pricing of both residential and commercial properties at their present levels. In other words, the demand caused by international buyers helps protect Orlando’s real estate values from a decline.”
SECOND HOMES
International buyers contribute to Orlando’s tourism-driven economy. More than 38 percent
of foreign buyers purchase their properties as vacation homes, and another 37 percent purchase
their properties as rental property for investment. “Those vacationers contribute in the usual
manner to Orlando’s local businesses by visiting the theme parks and patronizing restaurants and
shops,” says Johnson. “In addition, international buyers must purchase the goods and services
required to furnish and maintain their homes.”
WHY RELOCATE TO CENTRAL FLORIDA?
According to the most recent information from the U.S. Census Bureau, Florida is the
fastest-growing state in the country. U.S. residents have been relocating here for
various reasons — vacation, retirement and change of lifestyle. Foreign homebuyers are
following those U.S. residents. Nearly a third chose the Central Florida regions of Orlando and
Tampa-St. Petersburg. While Florida’s international homebuyers came from more than 100
countries in all areas of the world, the majority of all home purchases by foreign buyers in
Florida, 58 percent, were made by Europeans. More than half of the buyers from Europe were based in the United Kingdom. In fact, the United Kingdom was the No. 1 country of origin for foreign homebuyers, accounting for one-third of all international purchasers. Eastern European countries, which include Russia and the former Soviet Republics, currently account for 3 percent of international homebuyers.
British homebuyers strongly favor purchasing in the Orlando area. Almost half of buyers from
the United Kingdom purchased properties in Orlando and the vicinity. The next-most-popular
choice was Naples-Fort Myers, followed by Tampa-St. Petersburg.
THEY SPEND MONEY
The majority of foreign homebuyers bought a single-family detached house or a town house
that cost between $140,000 and $400,000. The median price paid for a home was $299,000. By
comparison, the average median price paid for an Orlando area home by U.S. residents ( May 2004 and May 2005 the months the study looked at) was $190,000,
This data according to the Orlando Regional Realtor® Association..
ON LOCATION
More than half of international homebuyers financed their Florida home purchase with a mortgage, but 36 percent of them paid cash. This is significantly different from U.S. domestic homebuyers, only 8 percent of whom paid cash and 92 percent of whom financed some part of the purchase price. For all Florida homebuyers in 2004, 90 percent used a mortgage to finance the purchase of their home, and 10 percent paid cash. One possible explanation for this disparity
in the use of cash to buy a home could be that because international buyers reside outside the United States, they are looking for less risk in their U.S. home investments to ensure against
price declines. At the same time, cash purchases reduce the foreclosure risk among this group of buyers. And lower foreclosure risk, in turn, reduces the possibility of a price decline.
However you look at it, foreign buyers are contributing in spades to the Central Florida economy.
Results of the 2005 Profile of International Homebuyers in Florida were based on 986 Florida Realtors® who closed 1,844 home sales transactions to non-US. residents in the
preceding 12 months. Analysis of the results indicates that international buyers of U.S. homes
in Florida during the period May 2004 to May 2005 resided in more than 100
different countries of varied population and geographic sizes, various cultures
and located in all regions of the world. For a list of Realtors® who specialize in international real estate, visit www.OrlandoInternationalCouncil.com.
Buyers Profile:
A United Kingdom 33.3%
A Eastern Europe 3.0%
A Western Europe 21.2%
A Central America and Caribbean 8.1%
A Asia 4.0%
A Canada 7.1%
A South America 21.2%
A Other (Africa, Australia,
New Zealand) 2.0%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~
THEY CAME. THEY SHOPPED. THEY DINED. They experienced our world-famous attractions. and they did it in record numbers. Nearly 48 million visitors arrived in Orlando in 2004, a 6.1
percent increase over 2003, setting an overall record for the number of visitors to the Orlando
area, according to the Orlando/Orange County Convention & Visitors Bureau Inc. (Orlando CVB).
In fact, one in every four domestic travelers vacationing in Florida last year visited Orlando,
which translates into business opportunities for all. Want even better news? The Orlando CVB
expects the growth in visitation to continue through at least 2008.
“Our most recent visitation forecasting model shows that we will experience steady growth,
although at a more conservative pace, through 2008,” explains Daryl Cronk, senior economist for
the Orlando CVB. The forecast for 2005 visitation shows the destination breaking the 50 million
mark for the first time.
INTERNATIONAL VISITORS ON THE RISE
The most significant growth in 2004 was in the international market, which saw a 12.4 percent
increase — its first increase since peaking in 2000. While the United Kingdom continues to be
Orlando’s top international market. Members of Orlando’s tourism industry are pleased to
see signs of improvement in the Latin American market. While the rebound in international travel
is significant, international visitors represent only 10 percent of all Central Florida visitors.
Americans still constitute the largest segment of visitors to the region. The Orlando CVB will
be rolling out a destination branding campaign in 2006. Look for ads in popular magazines
such as Oprah, Family Circle, Food & Wine, Travel + Leisure, Golf Magazine, Family Fun
and many more. The Orlando CVB is focusing its 2006 international
marketing strategy to capitalize on the potential being shown in select markets. With
integrated marketing programs in the United Kingdom/Ireland and Canada, the Orlando CVB
is hoping to expand visitation from those key markets. Your company can piggyback on these
efforts to get the maximum mileage out of your marketing dollar. “We will be [using] travel trade communications, promotions and publicity to generate visibility for Orlando in markets such as Brazil, Colombia, France, Germany, Italy, Japan, Mexico and Spain,” explains Jose Estorino, the Orlando CVB’s senior vice president of marketing.