Humber/Ontario Real Estate Course 4 Exam Practice

Which statement about demographic research is incorrect?

1. It helps in understanding local community trends

2. Aging seniors tend to downsize for cost savings

3. Downsizing is rarely influenced by demographic shifts

4. New developments can influence the timing of property sales

5. It is crucial for market analysis

6. Demographic changes impact housing needs

The correct answer is: Downsizing is rarely influenced by demographic shifts

The statement regarding demographic research that is deemed incorrect is that downsizing is rarely influenced by demographic shifts. This assertion is not aligned with the reality of how demographic changes affect housing decisions. Demographic shifts can significantly influence individuals' decisions to downsize, especially as populations age or as family dynamics change. For instance, as more individuals enter retirement age, the trend often leads to an increasing number of seniors looking to move into smaller, more manageable living spaces. Such decisions are often driven by factors like reduced income, maintenance concerns, and the desire for a more suitable living environment that aligns with their lifestyle changes, all of which are directly connected to demographic trends. In contrast, the other statements accurately reflect the importance of demographic research in understanding real estate dynamics. For example, recognizing local community trends, the impact of new developments on property sales timing, and how demographic changes shape housing needs are all vital aspects of market analysis that real estate professionals consider when evaluating potential opportunities or risks in the market.