HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums--and HomeFront changed its focus. The change in demand could be explained by:

Question

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All of the given factors are likely causes for the shift in demand from large, single-family homes to small luxury condominiums. Senior citizens who are empty-nesters may prefer downsizing from a large home to a smaller, more manageable condominium. Consumers in urban areas generally have higher incomes and may be willing to pay for the luxury and convenience of a condominium. The increasing number of 45-64 year olds whose children are grown may no longer need a large home, and the increase in the number of single-adult households may also create more demand for smaller living spaces.

HomeFront Construction Company Built Large, Single-Family Homes for 25 Years