Blog - Real Estate

Household metrics can open doors to a better business strategy

Written by Geoblink ·

In addition to the previous blog post that addresses the importance of transactionality data for business executives, this blog post focuses on yet another metric in the pipeline – The household data. Not only it opens doors for a better business strategy but also, more importantly, lifts the marketing and communication campaigns to a better height.


What sub-metrics go into the household data?

Let’s consider the local authority of London to derive the necessary data for our analysis. But first, let’s have a look at some analytics:

  • Census population: 242,300 inhabitants
  • The average disposable income: 41,850€
  • Footfall along the stretch: very high
  • Commercial markers: 7,300
  • Population density:  11,000 pop/km

In general: The area of the local authority is 22km² with 115,000 households. Out of the total number, the percentage of single-person households is 39.9%.

The household type

The selected area has 89% of flats and maisonettes (120,000). Whereas, the number of houses & bungalows is 14,000 (11%).

London household metrics


The local authority leads with a higher percentage of private rented properties, i.e., 46,500 households (36%). This is followed by 28% of owned households (35,500). However, the percentage of owned households with mortgages is 12% (15,000).

London - tenancy

Land Use

  • 59% of the land is attributed to the urban area (with more than 80% of buildings)
  • Nature and green areas occupy 21.04% of the total land

London - Land use


Surprisingly London has a higher percentage of one-person households (45% and 53,000) followed by households of families without dependant children (24% and 28,000). While the percentage of households of families with dependant children is 17% (19,500).

London - occupancy

Inferences: How the metric can be of help to businesses?

  • The household metrics are important because it has a major influence on how buyer’s purchasing and spending decisions are made.
  • The single-person households. It is in the news that single-person households make up an important consumer market. They still require the same kind of electronic appliances other household types prefer.
  • The metrics provide insights on the size of opportunity for goods and services industries
  • As important as it is for business to unearth the other metrics such as the disposable income, transactionality and the pedestrian traffic metrics, it is important for them to delve into the household metrics.

The household metric, particularly, serves the following departments and empowers the business decisions with hard analytics:

    1. The expansion department: to spot the ideal location for retailers, real estate and FMCG professionals to commence their next business. Knowing the total number of inhabitants and the population density forms the first layer of unlocking the customer demographic pattern. But the crux of an expansion plan lies in knowing the deeper population patterns such as the household types and tenancy.
    2. The business intelligence department: to forecast sales in a place where one can actually expect considerable returns on investments. The household metrics add a layer of lucidity when an executive conducts a market analysis of an area and estimates the future sales.

The marketing & communication department: the department that can make utmost use of the household data is the marketing and communication department. The metric gives an idea about what product to sell, what quantity of resources a business should allocate to meet the needs and demand, what kind of marketing campaigns to deploy and what communication method to use to spread the message effectively to the intended crowd.
An executive can also think of providing multiple offers for every individual in the house which in turn reciprocate creating a huge impact for the businesses, i.e., understanding a household composition can help the managers decide on a single product that appeals to all members or the kind of product mix to offer. The marketing managers also have the opportunity to create bespoke campaigns to attract all the members of the family.

If you would like to decipher the household metrics around your business location:

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More importantly how can real estate businesses leverage the household data? 

  • This particular metric, for a while, has been gaining increased recognition among the real estate executives. Though it appears both in the residential and commercial domains, the inclination is towards planning a strategy for the residential segment of the industry.
  • The sub-metrics executives would predominantly like to analyse are the tenancy, occupancy and the different household types. Also, they compare the percentages of rented and owned properties to decide further on their investment opportunities.
  • One also arrives at decisions considering the rented and owned figures. For example: in the local authority of London, the rented percentage is greater (36%) than the owned percentage (28%). This comparison pushes us to understand the consumer’s spending patterns, i.e., the greater number of owned properties in an area, the higher is the disposable income and spending capabilities. In our case, the percentage of rented property is greater. This could ring a bell among the decision makers on what kind of property to bring to the location.
  • Also, the household type. For example: if a real estate examiner is planning to construct a residential space in an area, the results he received from a market research of the area indicate a majority of one-room households compared to the other household types. He also gets a report that 75% of that property has not been sold over the years. The executive then notices a drop in demand for the one-room and the need for 2 or 3 room property. The executive then exploits a different strategy to the area.

Hence, the household metric is vital, among other indicators, to businesses. It gives the managers an additional idea of what product mix to adopt and the kind of bespoke marketing strategy to deploy. Thus, knowing the total number of inhabitants is essential, but getting to the bottom and knowing the composition of a household increase the agility of a business strategy and help forecast sales in the new location.  

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