Question

Ace Builders, a home building company based in the North-Eastern part of the US, has been noticing increasing demand for family-friendly housing with several amenities in dense urban centers such as New York, Boston, and Philadelphia. Ace Builders realizes that their direct competitor, Beta Builders, is already meeting this growing demand because they quickly converted, in downtown Boston, a brand new building of studio apartments into 2 and 3 bedroom apartments, which have sold out in days. Ace Builders realizes that Beta Builders may have beaten them in this round of competition likely because Beta Builders:

Was keeping a close eye on the key demographic trend of people shifting from urban dwellings to suburbs and exurbs.

Was keeping a close eye on the key psychographic trend of people shifting from urban dwellings to suburbs and exurbs.

Was keeping a close eye on the key demographic trend of people paying for suburban dwellings in exurbs and cities.

Was keeping a close eye on the key demographic trend of people shifting from suburbs to exurbs to urban dwellings.

Was ignoring the key demographic trend of people shifting from urban dwellings to suburbs and exurbs.

Answer 1

Was keeping a close eye on people's critical demographic trends shifting from suburbs to exurbs to urban dwellings.

The increase in demand for family housing is in the dense urban centers. So people are moving from suburbs to urban dwellings and not vice versa.

Moreover, such movement is a demographic trend for increasing the income level, and occupation and the demographic factor- the family's average size affects the consumer behavior. So, this is the correct answer.