Further, the real estate market is often divided into residential, business, and industrial segments. It can also be further divided into subcategories like recreational, income-generating, historic or protected, and the like. Real estate economics is the application of economic strategies to actual property markets. It tries to describe, explain, and predict patterns of costs, supply, and demand. The closely associated area of housing economics is narrower in scope, concentrating on residential actual property markets, whereas the analysis on actual property developments focuses on the business and structural changes affecting the industry.
