The impact of demographic changes on the real estate market

Volume: 1/2024
Issue: 1
Author: Jiří Máška, Jiří Růžička
Keywords: Market, real estate, demographics, population, housing, house

Demographic changes, such as the ageing population and the changing lifestyles of younger generations, are having a major impact on the current property market. This impact is particularly evident in housing affordability, new housing construction and social care capacity for the elderly. The aim of this paper was to explore the impact of demographic change, particularly the ageing population and the changing preferences of Generation Z, on the property market. The research was conducted through the use of regression analysis, time series analysis and correlation analysis using data from the Czech Statistical Office. The research found that wage growth increases housing prices in urban areas, which reduces the affordability of home ownership for Generation Z. A very weak negative correlation was found between the number of completed dwellings and the growth of the population aged 15-64, suggesting that the working age population does not have a significant impact on housing construction. Furthermore, a strong negative correlation was confirmed between the number of people aged 65+ and the capacity of beds in homes for the elderly, indicating a lack of availability of care for the elderly in the Czech Republic. These findings have provided important information for actors that have some influence on the provision of affordable housing. The main limitation of this paper is the focus on only selected demographic factors. Future research should aim to include more of these factors.

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