For long-term financial planning, property owners and managers can use demographics. These statistics can indicate the direction of growth in the neighborhood, help managers and owners position the property in the marketplace and offer clues as to future vacancy rates, rent levels and cash returns.
Is the population in the area increasing or decreasing? Is the pool of residents aging or getting younger? Are incomes increasing? Are family formations and size changing? Is the number of renters increasing or decreasing?
Demographics should be considered whenever major changes are contemplated and whenever the owner is deciding whether to purchase other properties. (or making upgrades & improvements)
Data on population shifts and the future size
of the tenant pool can help a landlord decide whether to purchase
a new building. The typical neighborhood circumference is three