The Impact of Changing Demographics on Real Estate Investing

Abstract: This paper examines the impact of demographic changes on property values, focusing particularly on a phenomenon referred to as demographic stigma. Key areas of analysis include: 1) Assessment of the objective value of a property. 2) Alternative methods: sales analysis, multiple regression analysis and income capitalization analysis. When appropriate, these methods may be supported by information obtained through market interviews. 3) Understanding demographic shifts and their implications. In future extensions of the work, these other methods will be explored in greater detail. Real estate investments are a vital part of the economy; therefore, it is essential to understand how demographics influence them. As populations shift, so do the opportunities and risks associated with real estate investment. Since 2000, the world’s population has increased by over 1 billion, creating higher demand for housing and other property types, such as commercial and industrial real estate. The Key factors that will be considered are: drivers of demographic change; population distribution analysis; market-specific effects; future trend forecasting; shifting conditions adaptation; exploration of new investment avenues; the role of younger generations; identifying growth regions; risk and reward assessments.

Key words: demographic changes, real estate

JEL codes: R, C, I