Causes of value fluctuations in real estate caused by social forces include:
|•||Aging of population|
Social forces refer to forces of the society or culture. Some examples follow:
Changes in taste. Changes in taste may be the strongest social force in real estate. Small functional bathrooms gave way to large multi-functional bathrooms. The large living room gave way to the family room and small living room of the 70's that gave way to the great room of the late 70's and 80's. Keeping rooms are becoming popular again.
Population trends. Population may increase in an area causing demand and, therefore, values to increase. Population may decrease causing the opposite effect. Individual neighborhoods or market areas may enjoy growth or decline with a corresponding effect on value.
Family composition. Smaller families with both parents working will cause changes in demand and corresponding changes in value. A trend toward "stay-at-home moms" will cause changes in demand.
Aging of the population. As the population ages, demand will undoubtedly change. Baby boomers have more money than their parents and are a larger proportion of the population than in previous generations.
Home offices. As more people telecommute, demand may shift to less expensive, further out neighborhoods since driving to work would not be a consideration.
Security. The perception that crime is increasing may increase demand for secure, gated communities.
These are but a few examples how social forces affect real estate value. There are many others.