Buying a home is a big deal as it represents a significant portion of most people’s wealth. As a result, you want to make sure the neighborhood you choose is right for you. According to Investopedia, “The average American has nearly one-third of his or her net worth tied up in real estate.” Understanding the key factors that drive the real estate market is therefore essential to considering a real estate investment. One factor that influences real estate is demographics.
“Demographics are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of properties are in demand. Major shifts in the demographics of a nation can have a large impact on real estate trends for several decades.” (Investopedia.com: article by Joseph Nguyen, 4 Key Factors That Drive The Real Estate Market)