| Demographic trends influence almost every
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| | the region.
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| aspect of life, from business planning to
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| |
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| provision of healthcare, from education
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| | "I look to see how fast the economy is
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| to style. Age, income, ethnicity,
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| | growing here in Bend, and how many jobs
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| gender, mobility, employment and other
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| | are likely to be created as a result, to
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| demographic factors determine the shape
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| | determine the resources my business will
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| of our society.
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| | need over the next five years," says
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|
| |
| | Oregon, real estate broker Terry Denoux.
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| Real estate is no less affected by the
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| |
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| ebbs and flows of demographic trends,
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| | Development planning relies even more on
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| particularly income, aging, family
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| | demographic data to determine priorities.
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| situations and employment.
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| | The average age of the population is a
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|
| |
| | major factor in the type of housing that
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| For commercial real estate investors,
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| | will be required over the next couple
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| the stakes are particularly high.
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| | decades.
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| Investing in commercial real estate, for
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| |
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| example requires the ability to forecast
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| | "A young population in an area will
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| where there will be a growing population,
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| | require more single family homes with
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| and/or where the population's average
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| | multiple bedrooms and plenty of space for
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| income will be increasing.
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| | children to run," explains Wendy Cobrda.
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|
| |
| | "On the other hand, an aging population
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| In fact, commercial property investment
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| | will need more hospitals, more medical
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| requires a deeper understanding of
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| | clinics, more housing that requires
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| demographic data; it is not just the
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| | minimal maintenance."
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| population trends that need to be
| |
| |
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| considered, but the demographics of the
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| | Demographic data plays a role in
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| competition. And even those cannot
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| | vacation rental real estate, too. "Do
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| follow a set formula.
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| | you buy vacation rental properties, or do
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|
| |
| | you sell the ones you have now?" asks
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| For instance, an entrepreneur looking to
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| | Steve Curtis, owner of , a vacation
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| set up a new car dealership needs to
| |
| | rentals lisiting site. "Well, that
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| consider where established dealerships
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| | depends on how much disposable income
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| are located and set up shop nearby. Car
| |
| | people have for vacations and, more
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| buyers wanting to compare similar models
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| | importantly, on the age of the
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| need to visit several dealerships, so
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| | population. A younger person is more
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| they need to be close to one another.
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| | likely to backpack through Europe, and
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|
| |
| | stay at a hostel. An older person in
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| On the other hand, an entrepreneur
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| | more interested in comfort and privacy,
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| looking to set up a new hardware store,
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| | which is what vacation rental properties
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| should look for an area underserved by
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| | offer."
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| the competition or where new residential
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| |
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| developments will be opening up.
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| | It also depends on where populations are
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| Hardware shoppers can compare brands of
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| | growing more, as well as where the
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| similar tools within the same store, so
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| | affluence is growing. If an economic
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| ease of access takes on a greater
| |
| | boom is happening in England and France,
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| importance.
| |
| | but not in the USA and Canada, a vacation
|
|
| |
| | rental in Spain might prove more useful
|
| Speaking of ease-of-access, traffic
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| | than on the Gulf Coast of Texas.
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| patterns can also make a difference,
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| |
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| especially near busy intersections. The
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| | "Business planning is just a shot in the
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| demographics of traffic can add to the
| |
| | dark without solid market data," explains
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| complexity of making a commercial real
| |
| | Ms. Cobrda. "Demographic data reports
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| estate investment.
| |
| | and maps help businesses project market
|
|
| |
| | activity into the future, helping to
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| Understanding where to invest in retail
| |
| | avoid such catastrophes as building
|
| properties is one of the main reasons
| |
| | stores with no customers or storing a few
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| that demographic mapping is such a
| |
| | million dollars of inventory that nobody
|
| popular service," explains Wendy Cobrda
| |
| | wants."
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| of Catosphere demographic data reports.
| |
| |
|
| "To visually see the movement of people
| |
| | Given the high ticket price of real
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| and their spending dollars helps
| |
| | estate, whether residential, commercial
|
| businesses 'see' where they should open
| |
| | or vacation rentals, demographic reports
|
| their next store."
| |
| | and market segmentation data are even
|
|
| |
| | more important.David Leonhardt is a
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| Consider also a real estate broker,
| |
| | Canadian freelance writer. He wrote this
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| whose livelihood depends on people
| |
| | article for Catosphere, a US demographic
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| changing homes. Economic mobility is a
| |
| | data reports company and for Go Bend, an
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| key determinant in the future of his
| |
| | Oregon real estate brokerage.
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| business, as is the economic health of
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| |
|