Economic development gurus regularly warn Northern Virginia Realtors® that our local economy relies too heavily on the federal government, and future prosperity rests on diversifying the local job market into areas such as medical research, hi-tech or tourism.
Yet one of the region’s primary comparative advantages, rarely mentioned by the forecasters, may be hiding in plain sight—the growing demographic diversity of Northern Virginia’s work force and business ownership.

At a recent presentation by the Fairfax County Economic Development Authority (FCEDA) entitled, “Business Diversity: Driving Economic Growth and Entrepreneurism,” Dr. Gerald Gordon, president of FCEDA, and Naomi Blackman from the U.S. Census Bureau reported that, based on the recently released 2012 Census Report, Fairfax County’s changing business community now includes 48,000 minority owned businesses, employing 80,000 workers and grossing sales and receipts of $14.4 billion.

"Other areas welcome minority businesses, Gordon acknowledged, but in Fairfax County we aggressively pursue them."

Minority-owned businesses in Fairfax County now account for 41 percent of all county businesses, up from 29 percent in 2002. Of the minority-owned businesses, nearly 25,000, or 21 percent of all county businesses, are currently owned by Asians, making Northern Virginia home to the largest number of Asian-Indian, Korean and Vietnamese owned businesses in Virginia, as well as in the Washington, D.C. metro area. Another 14,000 businesses are owned by Hispanics and nearly 9,000 businesses are owned by African Americans, according to Census figures.

Another mark of diversity in the Census report is that nearly 42,000 businesses, or 36 percent of all businesses in Fairfax County, are owned by women, and more than 12,300 businesses, or 11 percent of the total, are owned by veterans. Based on the Census data, minority-owned businesses, just like non-minority owned businesses, are spread across all business sectors.

“Other areas welcome minority businesses,” Gordon acknowledged, “but in Fairfax County we aggressively pursue them.”

The rapidly changing characteristics of Fairfax County are also reflected in the changing demographics revealed in the Census report. While unemployment remains low and salaries remain high, the population diversity has changed dramatically from 1960 when the white population comprised a dominant 95 percent. The 2012 Census reveals that white residents now account for 52 percent of the population and will soon become a minority. 

Part of that change reflects the departure of large numbers of local residents, a net loss of more than 25,000, in excess of those who have been moving to this area from other parts of the country in each of the past two years, according to data from the George Mason University Center for Regional Analysis.  While the overall area’s population increased by nearly 64,000 for the 12 months ending last June 30, it was the result of local births combined with international immigration to the area, replacing the departing residents. Fairfax County’s share amounted to an overall 0.3 percent population increase for the year, compared to Arlington County’s 1.1 percent and Loudoun County’s 3.3 percent.

“International immigration is the key to our continued economic success,” according to Dr. Terry Clower, director of GMU’s Center for Regional Analysis. “Immigrants into the market are providing not only workers in demand for the lower skilled service industries, but also higher paid professionals for the innovation and global industries key to the area’s future,” he said.

Anyone engaged in real estate in Northern Virginia, whether commercial or residential, should not be surprised by these changes in business and home ownership, based on their own client experiences. What is sometimes overlooked however is the important impact diversity has in driving economic development.

In a U.S. Chamber of Commerce report entitled “Diversity and the Path to Economic Growth,” published in December 2014, John Raidt pointed out, “There is another essential ingredient to America’s innovative excellence:  our diversity.”

“When organizations fail to embrace and harness diversity, it’s more than just a social, and under some circumstances, a legal shortcoming,” Raidt explained. “It can be lethal in a trade-based global economy which demands that we innovate for vastly different customers around the world.”

As Raidt’s report to the U.S. Chamber observed, “America’s enterprises hold an enormous comparative advantage by being able to capitalize on the world’s broadest population diversity to understand highly varied customer needs and find creative ways to meet them.”  

“When organizations fail to embrace and harness diversity,... It can be lethal in a trade-based global economy which demands that we innovate for vastly different customers around the world.”

NVAR has been a leader in recognizing the diversity of its membership and providing international support programs. Indeed, NVAR itself serves as the National Association of Realtor’s® Ambassador Association to Poland and Peru. In Addition, Mario Rubio, 2014 NVAR chairman of the board, has now taken a national leadership role as NAR’s Regional Coordinator for South America. Similarly, NVAR’s past chairman Vinh Nguyen has been named NAR President’s Liaison to Vietnam, while Angie Delboy has been named NAR President’s Liaison to Peru and Veronica Seva-Gonzalez is the NAR President’s Liaison to Spain. 

The Commercial Real Estate Development Association (known as NAIOP), an organization of commercial property developers and brokerages, recently reported on diversity among its members. The report cited that Duke Realty, which among other activities is heavily involved in the local redevelopment of Alexandria’s Beauregard project, has extended its diversity focus to include a supplier diversity program. The firm’s initiative contracts with local, rather than national, suppliers, advertises upcoming projects and explains its job needs to the suppliers. The program has been well received by local groups including Latino groups, minority councils and women’s enterprise chapters, according to Commercial Real Estate Development Association.

The Falls Church Chamber of Commerce, well known for its outreach to the Vietnamese-American community and the success of the retail Eden Center, has also recently launched a “diversity inclusion effort,” including efforts to attract the community’s growing Muslim businesses to join the Chamber.  In a recent article in the Falls Church News Press, Chamber Executive Director Sally Cole explained, “It is hard enough for anyone starting a business, but can you imagine the added barriers that arise from language and cultural differences?”  The Chamber’s goal to make it easier for minority-owned firms to be successful has already resulted in a number of new members to its organization.

And if anyone questions the benefits diversity brings to our communities, perhaps they should ask the Realtors® at NVAR!