REAL 1820 Lecture 8: Real Estate Market Analysis
9 Apr 2016
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Document Summary
Demand side: who are the end users- buyers (for sale) and renters (for lease), and their characteristics. Supply side: who are the competitors- both existing properties and those still under development. Demand is more difficult to analyze than supply. Demonstrate the potential for a new project. Provide for preliminary project planning: demand analysis. Consumer demographics: population growth, household formation, age and family characteristics, mobility and immigration, life styles etc. Smaller families and more one-person households--- demand for adult- oriented housing. Economic climate: employment; industrial growth or decline; changes in mortgage rates; change in land use and zoning; taxation. Steady employment in sectors like office and retail--- commercial space (office & retail) Unrealistic for 100% homeownership (every family owns a home) Renters by choice: prefer to rent not due to financial reasons. Renters by necessity: have to rent due to financial reasons. E. g. low income couples with kids; single parents, singles (students, fresh graduates etc. : predicting housing demand.
