Introduction
Demographic change refers to changes in the size, composition, and distribution of a population over time. Real estate includes the rights of ownership and use; everything immovable and tangible that comprises property can be classified as real estate, including houses. Basically, anything natural or man-made which has a value assignable to it by law comes under real estate. As the world’s population continues to grow, the need for living space will become increasingly important. As a result, people can expect to see rising prices and greater competition for prime properties in the years to come. As more and more people move into cities, the demand for urban living spaces will only increase. Due to the increase of the population in urban areas, real estate will have to put up more modern structures; various building technologies and trends will help in controlling the growing need for residential houses.
Growing Population and the Need for Living Space
As the world’s population and need for living space continue to grow, the demand for housing naturally increases as well. This is beneficial for the real estate market, as it means that prices are likely to continue to rise in the years to come. However, this increased demand similarly comes with its own set of challenges. For one, it will become increasingly difficult to find affordable housing in major metropolitan areas (Bah et al., 2018). Second, given the ever-growing population, it will become increasingly important for developers and builders to create smart, sustainable communities that can accommodate everyone. Building technologies can help in a number of ways to manage population increase. One way is by providing the means to build homes faster, thus accommodating more people. Another way is through automation and management of building systems which leads to improved efficiency and often reduced costs associated with housing and servicing a larger population (Ratcliffe et al., 2021). Additionally, new building materials and construction methods are always being developed which will help reduce the environmental impact of housing growth while still providing comfortable and safe homes for people.
House prices are determined by the supply and demand for housing. When there is more demand than supply, prices go up. Building new homes increases the supply of housing and brings down prices. Technological advances that make home-building cheaper and faster will help to bring down house prices. For example, the 3D printing of houses will drastically reduce construction time and costs (Ratcliffe et al., 2021). Similarly, automated construction using robotics can reduce costs; these technologies will make it possible to build many more homes, thus making houses cheaper due to increased supply.
The vertical building is the keyway to meet the growing demand for houses without congestion in residential regions. As the population continues to grow, the demand for housing will only continue to increase. Fortunately, there are a number of building trends that can help to ease this demand. Some of these trends include building upwards instead of outwards; this can help to save space and reduce the need for new construction. The upward building design is becoming more popular in response to the growing demand for houses (England and Farkas, 2017). This design allows for more homes to be built on a smaller piece of land, and it is a more efficient use of space. Vertical building similarly has other benefits; it allows for natural light and ventilation to flow through the home, which helps to reduce energy costs as a result of using the air conditioner. And because the homes are stacked on top of each other, one apartment can accommodate six people, thereby creating spaces for constructing other buildings, thus managing the growing demand for houses in the real estate.
Urbanization and Moving to the Suburbs
Urbanization can be defined as the process by which cities and towns grow and develop. It is a complex phenomenon that involves both economic and social changes. There are many factors that contribute to urbanization, such as natural population growth, rural-to-urban migration, and international immigration (Bah et al., 2018). As more people move into cities, they put pressure on the existing infrastructure and services, which can lead to problems such as overcrowding, congestion, and higher costs of living.
The real estate industry is affected by people moving to the suburbs in a few ways. First, when people move to the suburbs, they often need to buy a home, and this increases the demand for housing. This can lead to increased prices and more competition among buyers, which can be good for sellers but a disadvantage for buyers (England and Farkas, 2017). Second, moving to the suburbs means that people are settling down and starting a family, and this usually means that they will need more space than what they had in the city. This can lead to an increase in demand for single-family homes relative to apartments, which can lead to increased prices or less available inventory in certain markets.
On the contrary, the increase in families in urban areas globally has definitely had an effect on the real estate industry, most notably in the construction of new homes. Families require more space than single individuals or couples, so home builders have had to create homes with more rooms and larger living spaces to accommodate them. This trend is especially pronounced in Asia, where the population density is much higher, and many families live in multi-generational households (Bah et al., 2018). As cities continue to grow and more people move into urban areas, people can expect this trend to continue and for the real estate industry to adapt accordingly. Families are an important part of the housing market, and their needs must be taken into account when constructing new homes or planning redevelopment projects.
The impact of urbanization on the real estate industry is significant. The primary impacts is that there is a need to construct many more houses to accommodate the influx of people into cities. This has a ripple effect on the rest of the industry, as developers and builders rush to meet demand, and workers are needed to build and maintain these dwellings (Ratcliffe et al., 2021). Additionally, as cities become more densely populated, demand for commercial real estate increases. Office space and retail outlets become scarcer, and prices rise; this can be advantageous for those in the industry, but it can also lead to the displacement of longtime residents who can no longer afford rising rents.
The rapid pace of urbanization can similarly have a negative impact on the real estate industry. And this is that it can lead to the growth of slums and neighborhoods with inadequate housing as people move to cities in search of work and opportunity (England and Farkas, 2017). This can have two effects: drive up prices for cramped, substandard housing, or house more people in squalor with little hope of improving their situation. The growth of slums can be a result of the constructors not being able to afford the cost of recommended modern materials for building. Likewise, it can be due to the inability of the poor to manage to pay for the executive houses.
The present population in the residential regions dictates the types of structures to be constructed. The increase of the poor in urban areas has led to a need for more low-cost housing, which has resulted in the construction of cheap, small, and poorly structured houses. This has had a negative effect on the real estate industry, as it has forced developers to build low-quality housing that is not in demand by wealthier residents. As a result, developers have been forced to abandon or delay planned projects, which has led to a decrease in the value of existing properties (Bah et al., 2018). On the other hand, the rich people’s increment in urban areas has led to the construction of modern and better houses. This is because these individuals can afford to pay for high-quality homes. As a result, the real estate industry has benefited from this trend. Moreover, this has similarly increased competition among developers, which has ultimately led to improved home standards overall.
Conclusion
In conclusion, an increase in population in any region will always increase the demand for accommodation houses in the real estate industry. Different building technologies and trends are available to help in the creation of the structures that will be needed by the residents in the future. Some of the development expected from the real estate industry due to residents’ number increment includes the increase of structures both in numbers and quality that matches the population. In the urban setup, building trends such as vertical buildings are preferred to accommodate the huge number of occupants. The constructors should have structures that match the population’s socioeconomic status. Modern building technologies will aid in constructing high-quality apartments for the rich; they will likewise fasten the building speed. On the other hand, there will be different trends, such as the adoption of the slums system to accommodate the poor.
Reference List
Bah, E.H.M., Faye, I. and Geh, Z.F. (2018) Housing market dynamics in Africa. Springer Nature.
England, P. and Farkas, G. (2017) Households, employment, and gender: A social, economic, and demographic view. Routledge.
Ratcliffe, J., Stubbs, M. and Keeping, M. (2021) Urban planning and real estate development. Routledge.