Asia’s Growing Influence on Houston

Presented by: Oscar Gonzales, MBA, PhD

Houston’s International Trade

$-

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000

$14.000

Mexico Brazil Netherlands

Colombia China Canada Venezuela Chile Korea Belgium

$ Billions $12.395 $10.289 $7.297 $6.762 $5.533 $5.285 $4.308 $3.983 $3.744 $3.526% of Total 9.40% 7.80% 5.50% 5.10% 4.20% 4.00% 3.30% 3.00% 2.80% 2.70%

Top Export Destinations from Houston

Mexico 21%

China 15%

Netherlands 11%

Saudi Arabia 10%

China 9%

Canada 8%

Kuwait 7%

Chile 6%

Russia 6%

Korea 6%

Other 25%

Top Import Countries to Houston MSA Rank Country $ Billions % of Total

1 Mexico $ 16.386 13.50% 2 China $ 11.060 9.10% 3 Venezuela $ 8.618 7.10% 4 Saudi Arabia $ 7.793 6.40% 5 Russia $ 7.696 6.30% 6 Germany $ 5.540 4.50% 7 Kuwait $ 5.371 4.40% 8 Brazil $ 5.348 4.40% 9 Russia $ 4.618 3.80% 10 Korea $ 4.208 3.50%

Total Top 10 $ 76.638 63.00% Total - All Countries $ 121.80 100.0

Asia Total Trade Sub-Region Houston

Trade Partner Imports to Houston

(in $ dollars) Exports from Houston

(in $ dollars) % of Total Houston

Imports

% of Total Houston Exports

2014 Asia Total $ 26,273,965,148 $ 21,369,583,772 21.57% 16.25%

3 Eastern Asia $ 19,294,741,806 $ 13,236,381,530 15.84% 10.07%

9 Southeastern Asia $ 2,584,516,164 $ 4,238,310,520 2.12% 3.22%

11 Southern Asia $ 3,460,338,322 $ 1,792,040,911 2.84% 1.36%

19 Oceania $ 566,348,212 $ 1,369,875,265 0.47% 1.04%

20 Central Asia $ 330,465,192 $ 366,978,210 0.27% 0.28%

22 Southwestern Asia $ 37,555,452 $ 365,997,336 0.03% 0.28%

Asian Trade With Houston by

Region

Houston Exports to China Commodity Exported to China in 2014 Percent of Export

Cereals 21.80% Organic Chemicals 18.50% Mineral, Fuels, Refined Products, Oils, Waxes 14.70% Industrial Equipment and Computers 13.80% Plastics and Plastic Articles 6.80% Electrical Machinery, Equipment and Parts 3.70% Articles of Iron or Steel 3.10% Rubber and Rubber Articles 2.70% Oil, Grain, Seed, Fruit, and Plant Seeds 2.00% Miscellaneous Chemical Products 1.90%

Commodity Imported From China in 2014 Percent of Import Industrial Equipment and Computers 20.70% Electrical Machinery, Equipment and Parts 12.30% Articles of Iron or Steel 9.70% Footwear, Gaiters, Etc. 6.90% Furniture, Bedding, Lamps, Etc. 6.40% Toys, Games and Sports Equipment 6.20% Organic Chemicals 5.20% Plastics and Plastic Articles 5.20% Iron and Steel 3.60% Rubber and Rubber Articles 1.70%

Houston Imports From China

The EB-5 program permits 10,000 foreign citizens each year to obtain a green if they invest at least $500,000 and if they create or preserve at least 10 U.S. jobs.

EB-5 Visas • Chinese nationals accounted for 85 percent of

EB-5 visas issued in 2014.

Houston’s Demographic Profile 2014 - 2019

County 2014 Est Pop White Hispanic Black Multiracial Asian Native

American

Austin County

28,698 23,406

7,006

2,176

3,061 13

42

Brazoria County

344,464 241,041

99,752

42,366

40,233 20,353

470

Chambers County

37,201 29,996

7,162

2,660

4,316 155

65

Fort Bend County

693,249 357,078

166,092

147,191

69,615 118,698

639

Galveston County

302,418 231,244

67,501

35,280

28,665 6,958

257

Harris County

4,479,362 2,544,869

1,973,233

835,831

837,291 247,959

12,577

Liberty County

74,388 58,562

14,424

6,880

8,675 147

123

Montgomery County

531,825 455,116

113,425

18,923

47,732 8,287

1,722

San Jacinto County

26,219 22,503

2,513

2,224

1,437 35

20

Walker County

68,787 47,284

11,942

14,788

6,297 326

92

Waller County

44,149 26,671

13,675

9,844

7,437 61

135

2014 Houston MSA

6,694,881

4,083,870

2,484,033

1,130,600

1,060,121 404,019

16,271

Houston MSA 2014 Est Pop White Hispanic Black Multiracial Asian Native

American

2014

6,694,881

4,083,870

2,484,033

1,130,600

1,060,121 404,019

16,271

2019

7,358,844

4,443,955

3,005,091

1,248,138

1,201,240 447,103

18,408

Total Change 9.92% 8.82% 20.98% 10.40% 13.31% 10.66% 13.13%

ASIAN POPULATION BY ANCESTRY 404,019 Vietnamese 104,806 25.94% Asian Indian 98,082 24.28% Chinese 71,892 17.79% Filipino 42,254 10.46% Pakistani 28,131 6.96% Korean 15,070 3.73% Other Asian 11,721 2.90% Japanese 4,943 1.22% Other Asian, not specified 5,987 1.48% Cambodian 4,599 1.14% Taiwanese 4,552 1.13% Thai 3,173 0.79% Laotian 2,637 0.65% Bangladeshi 2,588 0.64% Indonesian 1,866 0.46% Sri Lankan 1,090 0.27% Malaysian 629 0.16%

Where Are Houston Asians Immigrating From?

Foreign Buyers

Foreign Buyers

• Chinese buyers are the biggest international

buyers of U.S. real estate in terms of dollar volume, total units, and average price paid.

• 76% of Chinese buyers pay cash.

“THE HOW” in Doing Real Estate with Asian Buyers

Presented by: Oscar Gonzales, MBA, PhD

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Presented by: Oscar Gonzales, MBA, PhD