REAL 1820 Lecture Notes - Lecture 4: Weighted Arithmetic Mean

• School: University of Guelph
• Department: Real Estate and Housing
• Course: REAL 1820
• Professor: Jian Zhou

Document Summary

Market analysis: looking at characteristics of demand & supply sides of the housing market: demonstrates potential for new projects, provides inputs for preliminary project planning, attracts investors, debt nancing & government funds. Demand-side: who are the end users: characteristics of buyers(for sale) & renters (for lease, more dif cult to analyze than supply. Supply-side: who are the competitors: existing properties, properties under development. Driven by different factors: population growth, household formation, age & family characteristics, mobility & immigration, life styles, economic climate, employment. Industrial growth or decline: changes in mortgage rates, changes in land use/zoning, taxation. The decision to buy or rent: unrealistic for 100% home ownership, renters by choice: prefer to rent ie: working couples without children, renters by necessity: ie: low income couples, single parents, students. 552 will be part of new demand for replacement purpose another part is to replace old units generally 0. 5-1% per year assume 0. 5%