As we wrote in Part I of this two-part series on how the 2020 US Census Bureau data is and will affect housing market trends going forward…
“Based on news from the US Census Bureau, shifts in demographics and migration geographies will affect how Americans will make buying and selling decisions.”
Two Big Takeaways from 2020 US Census Bureau Data
There are two overwhelming takeaways that cannot be ignored by real estate and housing professionals in the 2020 US Census Bureau data:
ONE: The fastest growing places in this country are in the West…not on the West Coast but in the West.
TWO: The nation is becoming increasing ethnically diverse.
These two data points will essentially determine who housing consumers are and will be going forward in time and where those housing consumers now and in the future will choose to live.”
Part II of this two-part series focuses on Demographic Shifts
Diversity Defined Demographic Shifts in Last Decade
Caucasian Americans still represent the majority ethnic group in this country BUT, during the last decade, the number of people identifying as white alone fell by -8.6% to just under 58% of the population.
The number of Americans who identified themselves as multiracial in 2020 jumped to 33.8M, a decade-over-decade increase of +276%.
The number of Americans identifying themselves as Hispanic/Latino jumped +23% from 2010 to 2020 to 62.1M or 18.7% of the entire population.
Black Americans are the third most populous demographic group in the country at 12.1%.
Most Ethnically Diverse States as of 2020 US Census Data
Hawaii is now the most ethnically diverse state in the country. No single race is the majority in Hawaii however people with Asian Backgrounds represent 35.6% of Hawaii’s population.
California is the second most ethnically diverse state with Hispanic/Latino residents coming in at 39.1% of the Golden State’s population. Caucasian Americans represent 34.7% of the state’s population.
Nevada, Maryland and Washington DC round out the top five most ethnically diverse states in the country.
Implications for Real Estate Professionals
Obviously, real estate experts and professionals who are able to engage and communicate with ethnically diverse housing consumers do and will have a distinct advantage. English may become a second, not the first, language in many, many locations. Likewise, being cognizant about how various ethnic groups perceive debt, property ownership, family participation/cooperation and various forms of discrimination (housing, lending, etc.) is crucially important for real estate experts and professionals.
According to Jim Dalrymple II writing for Inman, “…the demographic trends suggest that for real estate, it’s adapt of die.”
Thanks to the US Census Bureau, Redfin, Forbes and Inman.
