Real estate and Maslow's Hierarchy of Needs

[Darryl Bull]

I once read that the best businesses often serve the bottom of Maslow's Hierarchy of Needs. Not everyone reaches the "self-actualization" or even "self-esteem" tiers. But just about everyone will be fulfilling physiological needs such as food, sleep, and basic health. And almost everyone will be looking for safety in the form of shelter, clothes, and environment. Real estate seems to tick the bottom two tiers of Maslow's Hierarchy and possibly even makes its way into tiers 3 and 4 which are "belonging" and "self-esteem". For example, people buy in certain areas because they want to belong to that community. Or maybe they want a house with a 90210 zip code because that raises their self-esteem. The point is that real estate ticks a lot of boxes when compared to other businesses. And that makes it an exciting opportunity with a lot of levers to pull in order to create value.