What are the different types of real estate market segmentation (e.g. geographic, demographic, behavioral)?
Real estate market segmentation refers to the process of dividing the real estate market into smaller groups or segments based on common characteristics. There are several types of real estate market segmentation, including:
Geographic segmentation: Geographic segmentation involves dividing the real estate market into segments based on location, such as city, state, or region. This type of segmentation is typically used to identify regional market trends and to assess the demand for different types of properties in specific locations.
Demographic segmentation: Demographic segmentation involves dividing the real estate market into segments based on characteristics of the population, such as age, income, or household size. This type of segmentation is typically used to identify trends in the demand for different types of properties by different demographic groups.
Behavioral segmentation: Behavioral segmentation involves dividing the real estate market into segments based on the behavior of consumers, such as their preferences, attitudes, or motivations. This type of segmentation is typically used to identify trends in the demand for different types of properties based on how consumers use them.
The specific type of real estate market segmentation that is used will depend on the specific investment and the investor's objectives. It's a good idea to carefully consider the different types of market segmentation and choose the ones that are most relevant to your investment goals.