XLR8Thought question : How do I evaluate a real estate market ?
I’m trying to determine the best way to to where if a real estate market is worth investing in an idea where I should look Best Answer:
Reply from
golferwhoworks
it is a good investment. Now, where to look up to you. Where do you live? Long distance investments in real estate requires a property management company if you are wise
post answer to this question below!
If it is any help, the way I get a brief overview of a market is by putting in the location at City-Data.com and I look for cities of at least 50,000 population (or very close to cities with this population or more) with growth increases of at least 5% from the last census data. I also look at median income and use this as a benchmark to determine house prices and rents that are most likely to appeal to most of the population there. If I really get interested in a market, I will call the local Chamber of Commerce and Economic Development Center to get an idea of job growth in the area. The main factor in determining the status of a real estate market are changes in employment. Also, consider looking at the number of white-collar jobs since there is typically a multiplier effect in that for every white-collar job created, three blue-collar jobs are created.
There is obviously much more to studying a real estate market but these are some rough prescreening guidelines to help you quickly decide if a market is even worth looking at more in detail or not. Hope this is helpful.