How demographic trends shape our property choices: Peter Chittenden
In my last post, my aim was to outline how key aspects oF family formation impacts the demand for real estate. Looking at how particular demographic trends go way beyond influencing demand to fundamentally shape our immediate community and cities.
To round off these posts, this week I will look at what is I think, a very familiar journey. It’s a journey from our first flat, to a group house, finding a partner, becoming a first home buyer, having kids, investing in real estate other than the family home and getting older.
From that first flat to buying a retirement home, every step plays into the fabric of the residential market and has a direct impact on how and to whom we market our projects.
All of these stages of family formation drive and shape our markets, and during many of these stages incomes also grow and the priorities of the buyers shift.
So much so that if a well-established pattern shifts, the market needs to be ready to respond. People leaving home later, marrying and having children later are some recent stand out examples that have also helped shift demand to more medium density living. I would also like to think that by always taking a keen interest in social and demographic trends we are better placed to deliver projects to satisfy current and future needs.
So far I have looked at the singles market, finding partners and the reality of how lifestyle and housing needs change when here come the kids. This week over a series of posts I would now like to close off this interesting topic as we look at the impact of an older population.
As families mature and personal and family incomes peak, the mindset of the target market changes markedly from being single or from being a first time buyer. While many people will trade-up in the market others will also turn to real estate as an investment.
Peter Chittenden is managing director for residential of Colliers International.
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