The Effect of Transient Residential Populations on Business

Large cities are known most often for two things, crime and transient populations. Transient populations are the core infrastructure of many of the United States largest and most populous cities. While most transients are characterized as homeless citizens roaming the streets, many large cities have a secondary form of transiency. This form is related to the turn over of residents in any given area. This turnover has a significant effect on business performance and business planning. Let us take a look at the effect of a transient residential population on business.

To begin we must place parameters on the definition of transient residential populations. Many of the largest cities draw residential population increases of more than 10,000 people per month. While these numbers seem staggering, these same cities post decreases in residential populations of 5,000 or more. This set of hypothetical numbers provides a positive residential increase of 5,000 residents per month, but the fact remains, these 5,000 residents are new residents and, as stated in the model, there has been a net loss of 5,000 established residents. Here in lies the definition of transient residential population. A transient residential population is a population that maintains a large percentage of resident turnover.

Businesses who are established in cities with transient residential populations are constantly fighting to regain the same group of consumers they are losing over and over again. With each new consumer, a business must establish brand recall, trust and an effective supply to the resident. These establishments, for a certain amount of time, are considered liabilities to the business. With transient residential populations, these liabilities are rarely converted to profits because the consumer base is constantly revolving.

Some businesses do not even bother with professional advertising.

Credit: Summer Banks

Copyright: Summer Banks