Home Electrical Contractor Free Electrical Contractor Business Strategy Questionnaire 4.13 Target Market Housing Stock by Units in Structure Analysis Questionnaire
Why do we need an Housing Stock by Units in Structure Analysis in a business plan for Lights On Electrical, Inc.
Any business that deals with real estate like a Electrical Contractor need to have a solid understanding of the dynamics of the local real estate market.One of the key elements of real estate market analysis is the understanding of the distribution of homes by the number of units in structure - this is critical because most lenders tend to view housing structures of more than 4 units to be non-residential property. Having a clear breakdown using this analysis is critical to the success of a small business like Lights On Electrical, Inc.
The benefits of understanding Housing Stock by Units in Structure distribution in CuyahogaThe classes that have been created to measure the housing stock in structure distribution of the Cuyahoga target market range from 1-unit detached to Boat, RV & vans. The purpose of course is to distribute the entire houisng stock into its appropriate category for Cuyahoga . Once done, we now have created a table that shows the percentage of housing stock by units in structure distribution which will total 100% representing the entire housing stock. From there we can now get a very clear understanding of just how many homes in Cuyahoga a business will be able to target in their marketing. This becomes the basis for the pricing and marketing strategy for Lights On Electrical, Inc.
We have used the following classifications to break down the Housing Stock of the target market of Cuyahoga by Units in Structure:
Positioning and Pricing for Lights On Electrical, Inc.
If you are a business owner that is looking to position and pitch your goods or services towards single family homes defined as 1-unit detached houses then you need to understand that you will need to position your adveritising and pricing accordingly. For example selling real estate financing or realty services to multi unit homes requires a better understanding. of the demand and supply for these properties. Many buyers of multiple unit homes are typically not single families but tend to be larger joint families who need more room to be able to live together. They typically have better finances since multiple earners may be looking to buy these multiple unit properties. Another group of buyers interested in multiple unit properties tends to be savvy real estate investors who are well aware of the financing options available to them and often work with multple real estate agents and mortgage brokers.
Do Housing Units in Structure for a given location change?
The answer is yes the demand may change - but very slowly. For any target market like Cuyahoga,Ohio, the overall supply of housing units tends to be driven by local demand. Thus if Cuyahoga has been a place where most of the residents are single families, the demand for multiple family housing will remain failry tepid. On the other hand if larger families start moving into the area, or there is a cultural shift in the population from White to say Hispanic families, the demand for more multi-family homes will increase gradually.
What does the national picture for Units in Structure look like over the years?
The types of homes people in the United States live in have changed over the 60-year period from 1940 to 2000. However, the level of single-family detached homes hasremained fairly consistent during that period, in the 60 percents. In 1990, it dropped slightly to 59 percent but rebounded to 60 percent in 2000. Single-family detached homes were at their highest level in 1960, making up more than 2-in-3 of the total housing inventory. Single-family attached houses (row houses and townhouses) comprised 5.6of the inventory in 2000. Their share of the inventory was highest in 1940, at 7.6 percent.
Apartment housing with 2 to 4 units in the building was at its highest level in 1950, when it made up almost one-fifth of the total housing stock. By 2000, it had dropped to lessan one-tenth of the inventory. Units in larger apartment buildings of 5 or more units increased dramatically from 1960 (11 percent) to 1990 (18 percent).In 2000, they represented 17 percent of the housing stock.
Mobile homes experienced a significant growth over the 60-year period. In 1940, the number was so small that they were not counted separately; instead they were included in the “Other” category with boats and tourist cabins. In 1950, mobile homes, alone, made up only 0.7 percent of the inventory and by 2000 had increased to 7.6 percent of thetotal housing stock.
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