Real estate agent Donald Auzine helps his clients buy and sell property in the Baton Rouge, Louisiana, area. One of the reasons that Donald Auzine and his team have been successful is because the history and culture of the area are attractive to prospective residents. While location is an important factor driving interest in an area, there are other factors that influence an area’s appeal, including demographics, interest rates, the health of the economy, and government policies.
Demographics, which encompass the age, gender, race, and socioeconomic status of the people living in an area, play a significant role in attracting prospective homeowners. Interest rates also play a role in influencing where a person purchases. Because interest rates impact monthly mortgage payments, the lower the rate, the more affordable the home, so when rates are low, buyers are more apt to purchase property.
The health of the overall economy affects real estate because of a positive correlation between the economy and the real estate industry — which means that when one is thriving, the other also tends to do so. Finally, both federal and local government policies can influence real estate demand. Property taxes and subsidies, tax credits, and other deductions influence whether an area is particularly attractive.
Today, the motto “location, location, location” is not the only deciding factor for many when choosing living or working space, and while it might weigh heavily on buyers, the above four impact purchases greatly.