Commercial Real Estate Dictionary

Dictionary >> Definition

<< Deed restrictions Density >>

Demographics

Definitions of Demographics
  • Demographics are data that describe the characteristics of a population. Demographic characteristics include age, ethnicity, and income.
    Retailer Rick looks at important demographics such as age distribution, population density and average household income in an area when deciding on a location for his stores.


What Is Demography? What Are Demographics?

Demography is the study and analysis of populations. Demographics are the characteristics and data that describe and quantify those populations.

The word, demographics, finds its origins in Greece. In ancient Greece, demos referred to the people or population. The Greek origins of -graphy or -graphics is graphein, which means to describe, write, or record.

The first use of the term is accredited to Achilles Guillard in his 1855 work Elements Du Statistique Humaine Ou Demographie Comparee. Mr. Guillard defines demography as "The knowledge, provided by observation, of laws according to which populations form, sustain themselves, renew themselves, and follow one another."

What Is Demographic Data?

Demographic data is the specific piece of information that categorizes or identifies a subset of people in a population. The main purpose of demographic data is to characterize and quantify populations in terms of size, composition and distribution. Over time, demographic data can show population trends. Common examples of demographic data includes age, ethnicity, marital status, sex, birth rates, mortality rates, and migration patterns.

Why Are Demographics Important?

Demographics provide a scientific understanding of the character and trends of human populations. Any part of the community that needs to understand population trends needs demographic information to help make decisions, allocate resources, and influence policy.

In business, demographics are used to segment markets to identify specific needs particular to specific groups of people. Demographics are also used to determine if a market is big enough to sustain a particular type of business. As an example, a retail store may need to be located within a few miles of a minimum population size with a minimum household income to have enough customers to support their business.

Governments need demographic information for a multitude of reasons. An example would be a city who needs to plan for future development. Future development needs will be driven by local population composition, size and growth trends which the city needs to know to make budgets, determine necessary programs, and ensure appropriate land use policy.

Politicians even use demographic information to understand populations in their voting districts. Understanding who their voters are helps politicians identify the most important issues specific to their constituents.


        

Real Estate Terms

1. How much cash will be required to make your mortgage payments? Debt Service >>


2. Who can you go to to finance your construction or development project? Construction Lender >>


3. What professional can assist you in maximizing the value of your investment property? Asset Manager >>


4. How can we assess future commitment to infrastructure to support our communities and future development? Capital Improvements Projects >>


5. What measurement indicates if a property's financial performance can cover its debt? DSCR >>


6. What part of a city is the center of urban economic development? CBD >>


7. What allows property owners and professionals to estimate the market value of a commercial property? Comparable Property >>


8. What can landords do to entice prospective tenants? Concession >>


9. What critical factor do stores depend on to drive traffic? Anchor Tenant >>


copyright © 2020 Opmetric Inc. All Rights Reserved. Videos embedded per Youtube Terms of Service.
This website is provided by Opmetric Inc for educational and informational purposes only and should not be considered advice. We make no warranty express or implied as to the accuracy or reliability of information on this website. Information on this website is not guaranteed to be current, complete, or correct.