Which of the following factors is considered a demand factor affecting real estate?

The choice of government as a demand factor affecting real estate is valid because government policies and regulations significantly influence market demand. This includes zoning laws, property taxes, and development incentives that can attract or deter potential homebuyers and investors. For instance, if a government implements favorable tax policies or invests in infrastructure, it can enhance the desirability of a location, thereby increasing demand for real estate in that area.

By contrast, factors such as location and climate are often viewed as supply-side considerations that affect the value and appeal of property but do not directly dictate demand levels. Additionally, the supply of materials is more pertinent to the construction side of real estate rather than influencing the demand from buyers or investors. Therefore, understanding the role of government in shaping market conditions clarifies why it is considered a significant demand factor in real estate contexts.