What demographic factor can affect the demand for real estate?

Population growth is a key demographic factor that significantly influences the demand for real estate. When a population increases, it often leads to a greater need for housing, whether that be single-family homes, apartments, or commercial properties. This heightened demand can drive up prices and influence a variety of market dynamics, including rental rates and the speed at which properties sell. Additionally, population growth often correlates with economic development, creating more jobs and attracting further investment in housing and infrastructure.

While other factors such as interest rates, construction costs, and mortgage terms can certainly impact the real estate market, they are not demographic factors. Instead, they are economic or financial variables that indirectly relate to demographic trends. For instance, interest rates can affect affordability and borrowing power, but they do not represent a population trend. Hence, understanding the impact of population dynamics gives a clearer picture of long-term demand and market stability in real estate.