| Demographic trends influence almost every
| |
| | the region.
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| aspect of life, from business planning to
| |
| |
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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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| ebbs and flows of demographic trends,
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| | Development planning relies even more on
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| particularly income, aging, family
| |
| | demographic data to determine priorities.
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| situations and employment.
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| | The average age of the population is a
|
|
| |
| | major factor in the type of housing that
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| For commercial real estate investors,
| |
| | 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
| |
| |
|
| example requires the ability to forecast
| |
| | "A young population in an area will
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| where there will be a growing population,
| |
| | require more single family homes with
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| and/or where the population's average
| |
| | multiple bedrooms and plenty of space for
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| income will be increasing.
| |
| | children to run," explains Wendy Cobrda.
|
|
| |
| | "On the other hand, an aging population
|
| In fact, commercial property investment
| |
| | will need more hospitals, more medical
|
| requires a deeper understanding of
| |
| | clinics, more housing that requires
|
| demographic data; it is not just the
| |
| | minimal maintenance."
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| population trends that need to be
| |
| |
|
| considered, but the demographics of the
| |
| | Demographic data plays a role in
|
| competition. And even those cannot
| |
| | vacation rental real estate, too. "Do
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| follow a set formula.
| |
| | you buy vacation rental properties, or do
|
|
| |
| | you sell the ones you have now?" asks
|
| For instance, an entrepreneur looking to
| |
| | Steve Curtis, owner of , a vacation
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| set up a new car dealership needs to
| |
| | rentals lisiting site. "Well, that
|
| consider where established dealerships
| |
| | depends on how much disposable income
|
| are located and set up shop nearby. Car
| |
| | people have for vacations and, more
|
| buyers wanting to compare similar models
| |
| | importantly, on the age of the
|
| need to visit several dealerships, so
| |
| | population. A younger person is more
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| they need to be close to one another.
| |
| | likely to backpack through Europe, and
|
|
| |
| | stay at a hostel. An older person in
|
| On the other hand, an entrepreneur
| |
| | more interested in comfort and privacy,
|
| looking to set up a new hardware store,
| |
| | which is what vacation rental properties
|
| should look for an area underserved by
| |
| | offer."
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| the competition or where new residential
| |
| |
|
| developments will be opening up.
| |
| | It also depends on where populations are
|
| Hardware shoppers can compare brands of
| |
| | growing more, as well as where the
|
| similar tools within the same store, so
| |
| | affluence is growing. If an economic
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| ease of access takes on a greater
| |
| | boom is happening in England and France,
|
| importance.
| |
| | but not in the USA and Canada, a vacation
|
|
| |
| | rental in Spain might prove more useful
|
| Speaking of ease-of-access, traffic
| |
| | than on the Gulf Coast of Texas.
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| patterns can also make a difference,
| |
| |
|
| especially near busy intersections. The
| |
| | "Business planning is just a shot in the
|
| demographics of traffic can add to the
| |
| | dark without solid market data," explains
|
| complexity of making a commercial real
| |
| | Ms. Cobrda. "Demographic data reports
|
| estate investment.
| |
| | and maps help businesses project market
|
|
| |
| | activity into the future, helping to
|
| 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
|
| that demographic mapping is such a
| |
| | million dollars of inventory that nobody
|
| popular service," explains Wendy Cobrda
| |
| | wants."
|
| of Catosphere demographic data reports.
| |
| |
|
| "To visually see the movement of people
| |
| | Given the high ticket price of real
|
| 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
|
| Consider also a real estate broker,
| |
| | Canadian freelance writer. He wrote this
|
| whose livelihood depends on people
| |
| | article for Catosphere, a US demographic
|
| changing homes. Economic mobility is a
| |
| | data reports company and for Go Bend, an
|
| key determinant in the future of his
| |
| | Oregon real estate brokerage.
|
| business, as is the economic health of
| |
| |
|
