STRATEGIC INVESTOR RESPONSES TO DEMOGRAPHIC TRENDS: SEGMENT-BASED RECOMMENDATIONS FOR THE RESIDENTIAL REAL ESTATE MARKET

Abstract

This article examines how residential real estate investors respond to demographic change by focussing on segment-based differences of investors for example in the relevance of data use, analytical capabilities, and strategic investment or portfolio management behavior. Given the general relevance of demographic variables for residential real estate investments, the existing literature has largely overlooked how different investor types process and operationalize such information according to their specific needs. Using information gained from qualitative expert interviews with professionals from the residential real estate sector in Germany, this paper identifies three distinct investor segments that show a different approach in the use of demographic information: community or small private housing firms, large housing firms, and institutional asset managers. Each segment exhibits unique patterns regarding the relevance of demographic data, data access, analytical depth, or investment response. It is shown that responses to demographic trends are not uniform but conditioned by organizational objectives, market scope, and internal resources. The findings underline the importance of differentiated planning strategies for residential real estate investments, proposing segment-specific recommendations to enhance analytics by integrating demographic insights.