THE ROLE OF DEMOGRAPHIC DATA IN INFORMATION PROCESSES FOR RESIDENTIAL REAL ESTATE INVESTMENT DECISIONS
THE ROLE OF DEMOGRAPHIC DATA IN INFORMATION PROCESSES FOR RESIDENTIAL REAL ESTATE INVESTMENT DECISIONS

Summary/Abstract: Despite the general consensus of the relevance of demographic data for residential real estate investments, there is a general lack of knowledge about how this data is actually integrated into investment- related information processes within real estate firms. Therefore, this paper investigates how population dynamics are considered and operationalized in residential real estate decision-making. For this purpose, fifteen semi-structured expert interviews with professionals from various investor segments have been conducted in order to assess how demographic indicators shape the relevant analytical framework of investors, such as for market assessment or portfolio management. The results provide support to the relevance of demographic data but reveal significant variation in how they are interpreted and applied. While some firms translate demographic trends into concrete planning actions (e.g., modular housing or senior-friendly design), others use demographic data primarily for market monitoring. This points to the need for a more distinguished investigation of the role of such data that takes into account the unique investor types and their preferences. The study contributes to providing theoretical and practical insights into how investors use demographic data in the information process for residential real estate investments.

• Details
• Contents