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Intermediate1 hour10 terms

Real Estate Derived Demand Terminology

Explore essential terminology related to derived demand in real estate investment. This curated collection clarifies key concepts and market drivers that influence property demand, offering a helpful reference for investors navigating market analysis.

Term Collection

1

Demographic Analysis

Demographic analysis in real estate involves studying population characteristics like age, income, and household size to identify market trends, assess demand, and inform investment decisions.

Intermediate2-3 min
2

Job Growth

Job growth refers to the increase in employed individuals within a geographic area, serving as a key economic indicator for real estate investors to gauge market health, demand for properties, and potential for appreciation and rental income.

Intermediate12-13 min
3

Population Growth

Population growth is the increase in the number of people in a specific area, a key indicator for real estate demand, property values, and rental income potential.

Beginner5 min
4

Supply and Demand

Supply and demand are fundamental economic principles describing the interaction between the availability of real estate (supply) and the desire for it (demand), which collectively determine property prices and market conditions.

Intermediate13-14 min
5

Absorption Rate

The absorption rate measures the pace at which available properties are sold or leased in a specific market over a given period, indicating the balance between supply and demand.

Intermediate13-14 min
6

Derived Demand

Derived demand in real estate refers to the demand for a property or space that arises not from the direct desire for the property itself, but from the demand for the goods or services produced within or facilitated by that property.

Intermediate5 min
7

Vacancy Rate

The vacancy rate is the percentage of all available rental units in a property or market that are currently unoccupied or not generating income, serving as a key indicator of a property's financial health and market demand.

Beginner13-14 min
8

Feasibility Study

A comprehensive assessment of a proposed real estate project or investment to determine its viability, practicality, and potential for success across market, technical, financial, operational, and legal aspects.

Intermediate12-13 min
9

Economic Indicators

Key data points that reveal insights into the current and future health of an economy, used by real estate investors to forecast market trends, assess risk, and inform investment decisions.

Intermediate13-14 min
10

Comparative Market Analysis

A Comparative Market Analysis (CMA) is an informal estimate of a property's value based on recently sold, active, and expired listings in the same area, used by real estate professionals to help buyers and sellers determine a competitive price.

Intermediate15-18 min

Common Questions