Demographics change and population trends influence almost every decision in modern life from city planning to healthcare provisions, from education needs to life style living these and other demographic factors determine the shape of our society and the growth of urban living or suburban living. Consider a real estate investor whose livelihood depends on people changing homes or jobs. Economic mobility is a key determinant in the future of this business, as is the economic health of the region, jobs and the amenities of the area for singles or families. Recent weather stories that have impacted the US will also be a change in short term and long term demographics or urban area.
Development planning relies even more on demographic data to determine priorities. The average age of the population is a major factor in the type of housing that will be required over the next couple decades. As well as the influx of immigrants or evacuation victims form hurricanes (Harvey, Erma, Maria) to large urban areas that have job opportunities and supportive families. This can be a temporary need or if families resettle in the area, a permanent change of address and an opportunity to raise the rents due to high demand. Inventory and demand in these areas could be an untapped opportunity.
For investors, the stakes are just as high. Investing in commercial real estate requires the ability to forecast where there will be a growing population and where the population’s average income will be increasing for a squeeze on housing. Investors are best prepared to watch the news, see changes dues to weather or unpredictable changes in the environment as well as business that expands across the USA.
In fact, commercial property investment requires a deeper understanding of demographic data; it is not just the population trends that need to be considered, but the demographics of the competition, business climate and weather changes. Road traffic patterns can also make or break an investment, especially near busy intersections in competitive markets.
The demographics of traffic can add to the complexity of making a commercial real estate investment. Given the high stakes of real estate investment, whether in residential, commercial rental properties, demographic data reports and market segmentation data are even more important. Can you begin buying land or buildings now at a reasonable market price as you await for the demand to build? I believe yes you can. A matter of fact, there are good properties on the market today that deliver good returns (ROI) in current conditions. The demand for displaced workers and residents may only be six months away from today. Take advantage of this opportunity and diversify your portfolio by working with a good real estate broker.