Susan asked: BACKGROUND:
Recent developments in the economy have drastically changed the housing market from just a few years ago. Census data also shows that there has also been a dramatic surge in the number of “twentysomethings” in the USA. Among men ages 20-29, 75% had never been married, while among women ages 20-29, 65% had never been married. Both groups have registered an increase of over 10 percentage points in the “never married” category in the past 10 years or so.
Question A:
How have these economic and demographic changes in the marketplace affected the market for rental apartments? This could include a range of issues like rental prices, occupancy rates, or amenities that developers might add or delete from new projects. Discuss the implications for collecting and using market research information, and how this new information might affect the decisions related to positioning decisions for this marketplace. Specify your economic, demographic and target market assumptions first.
Question B:
Take a look at the other side of the housing market, single family homes, which were not considered in part “A” above, and see if you can determine how the same set of economic and demographic changes you used in part A would affect this side of the housing market. What major changes would be necessary in a real estate developer’s new product development process. Explain what changes you might anticipate in the area of “services” that might go along with your earlier discussion.
Sharon
