Lifetime of Ownership: Every demographic group shares a common path of homeownership which is composed of 8 Stages traversed by its' participants' during their Lifetime of Ownership. Although unique participants may skip or repeat certain Stages during their lifetime, the group as a whole will participate in all Stages. The Stages are Acquisition, Primary Trade, Pre-Mid Trade, Middle Trade, Post-Mid Trade, Mature Trade, Pre-Divestiture Trade and Divestiture.
Acquisition Stage: Acquiring a first home involves a single simple purchase. When participants currently active in the Initial Acquisition Stage surpass those active in the divesting of real estate, the demand on the overall housing supply increases.
Primary Trade Stage: Formerly acquiring a first home puts someone to be in a position to trade their existing home for another. The first time such a trade happens it is called a Primary Trade. These trades are either positive or neutral to the overall housing supply's need to increase.
Pre-Mid Trade Stage: As family size begins to change there becomes a perceived or genuine need to acquire homes that can facilitate that growth. Pre-Mid Trades are the first of 3 potential trades that a homeowner may participate in during this period. Pre-Mid Trades are either positive or neutral to the overall housing supply's ability to increase.
Middle Trade Stage: As housing demands change through the addition of family members sharing a common roof, the real need for a different home type is created. The Middle Trade is the most common of the 3 trades that take place as a result of adding family members. These trades are either positive or neutral to the overall housing supply's ability to increase.
Post-Mid Trade Stage: As families continue to change, previous decisions made to obtain a given home type are re-evaluated. Post-Mid Trades are the last of the 3 potential trades that occupy the Middle Trading Stages. Decisions made at the Post-Middle inevitably will result in all trades that take place after this stage has passed. These trades continue of positively impact or remain neutral to the overall housing supply's ability to increase.
Mature Trade Stage: The point where maximum earning potential combines with a change in the number of family members sharing the same roof, create a freedom to Trade homes not generally experienced during earlier trade stages. Mature Trades can be triggered by a change in family size or through the ability to fulfill needs previously not economically feasible. These trades can be positive or neutral to the overall housing supply's ability to increase.
Pre-Divestiture Trade Stage: As a home begins to be viewed as a weight on the way a family lives, trades take place that are intended to alleviate that weight. Pre-Divestiture Trades always are temporary trades and often can encompass more than one trade during this stage. Pre-Divestiture trades can be positive, negative or neutral to the overall housing supply's ability to increase.
Divestiture Stage: In the same way the Acquisition Stage involved no trade but a simple purchase, so to does the Divestiture Stage not involve a trade but instead a simple sale. Divestiture trades are negative to an overall housing supply's ability to increase and in some circumstances pose an extreme risk to an actual decrease in the overall housing supply being required.
Lifetime of Ownership: A completed path of homeownership for one individual represents their Lifetime of Ownership. While an individual may participate in some or all Trading Stages during their Lifetime of Ownership, they are also part of a larger demographic group which itself will pass through all stages during their lifetime while sharing participation in each unique stage along the way.