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Tapping the Ethnic Housing Market

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by

Josh Duncan

on 5 March 2015

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Transcript of Tapping the Ethnic Housing Market

Group B
Tapping the Ethnic Housing Market
Established in 1968
Fannie Mae
Table A
Major Reasons to Purchase Home
by Ethnicity
Table B
Home-Buying Knowledge
by Ethnicity
Table C
Perceptions of Home-Buying
Confidence by Ethnicity
Opportunities & Challenges
Facing Housing Lenders
& Real Estate Agents
African American
Overall Marketing Strategy
Hispanics
Advertising Campaigns
Provides financial products and services assisting low/moderate and middle income families to purchase homes
Commissioned studies to examine motivators and barriers to buying a home
Ethnicity was a HUGE factor in the housing gap
Good retirement investment
General Population
African Americans
Hispanics
Paying rent = bad
investment
Good place to
raise/educate children
Community with shared
values
Symbol of success
Close to family, friends and work
55%
65%
66%
61%
79%
52%
32%
56%
56%
82%
57%
54%
51%
57%
87%
60%
55%
61%
Children - education and safety
Top Motivators
Good retirement investments
Paying rent is seen to be a negative investment
You need to hire an attorney to fill out your paperwork when you buy a house
Percentage of Amount Who Chose False
Information on buying a home
is only available in English
If you want a mortgage, you have
to accept a 30-year commitment
Housing lenders are required by law to
give you the best possible rates on loans
The person buying the home pays
the real estate professional
You need to have a perfect credit
rating to quality for mortgage
Gen. Pop
A.A
E.H
S.H
89%
70%
74%
59%
48%
73%
92%
53%
60%
36%
34%
57%
93%
70%
65%
42%
47%
64%
60%
39%
27%
25%
23%
22%
Understand
Process Well
Process Too
Complex
Avoiding
Discrimination
General
Population
African
American
English
Hispanic
Spanish
Hispanic
33%
23%
29%
18%
13%
25%
18%
23%
4.0
3.4
3.9
3.6
5 point scale
1 = lowest confidence; 5 = highest confidence
The aid of companies like Fannie Mae
Opportunities
Because of low interest rates, it's a "buyer's market"
People want to invest in property instead of renting
People are buying homes more carefully
Challenges
Home buying myths are being believed
Huge ethnic gap
Unemployment rate in African American and Hispanic communities is higher
Fact
Overall Strategy
African-Americans and Hispanics are
more likely to indicate that a mortgage
is difficult

They are most likely to cite bad economic
times and overall complexity of process
Marketing Strategy
Create step-by-step informational pamphlets to hand out to particular communities

Explaining the home-buying process with Fannie Mae can be simple
Other Facts
In 2004, a pact was made with the National Association of Hispanic Real Estate Professionals (NAHREP) to buy at least 25,000 in mortgages made to first time home buyers
Fannie Mae created First Look - encourages the purchase of foreclosed homes by owner occupants, rather than investors
Fannie Mae supports prospective home-buyers by partnering with public entities and nonprofits
(Neighborhood Stabilization Program [NSP])
In 2010, Fannie Mae sold more than 115,000
HomePath properties to owner-occupant and NSP buyer
Reassure the home buyer that the process is as easy as
Overall Positioning Strategy
& Theme
Image: A professionally dressed black family coming home from work with their children in the car, having them look at each other and smile; kids running into the house
Visual Elements
Key Media Outlets
Magazines
Radio Stations
Internet/TV
Hair Shows in the South
African Americans
Develop Training Materials
Emphasize that there ARE spanish instructions
Overall Positioning and
Core Theme
Inform Spanish Hispanics' children of home buying knowledge
Focus on giving them more Spanish options
Both verbal & nonverbal
Language: By making ads in Spanish, and reassuring them that the housing market is Hispanic-friendly, it will create a sense of trust and loyalty and will help them, as well as their children, in the process
Visual Elements
Magazines
Key Media Outlets
Univision
Telemundo
Radio Stations
Enhance interactions with consumers from various backgrounds for lenders & real estate agents (have to be analyzed separately)
Q & A
The lenders & real estate agents need to be provided with training in order to maximize interaction with the different cultures and minimize failure in being comprehensive and understanding to those potential buyers in the African American & the Hispanic market.
Both lenders & agents need to be taught the key reasons why each subculture wants to purchase a home (as seen in Table A previously) and also be able to answer questions such as, which myths are true versus which ones are false. Clarifying these barriers can make a big impact on whether a consumer from either subculture wants to move forward with buying a home.
Furthermore...
VS.
Why?
Reason
Full transcript