Tracking Immigration, Cities & Rising Wages

I was inspired recently by this report from the NAR (National Association of Realtors).

This report clearly outlines changes in rent prices, income, mortgage payments, median home price, percentage of renter households, and owner households from 2009-2014.

I decided to plot the data on rents and income against this article from Forbes. Forbes outlines the top cities where Hispanic Americans have seen economic growth.

As a huge supporter of immigration, both personally, and in the market. I also anticipate the inevitable shifts in US population. We are participants in the housing market. We should be know the cities that are encouraging economic growth. We should know which cities are encouraging an inclusive environment for immigrants and first-generation Americans.

Here is the ordered ranking of the cities as provided by Forbes, data from the NAR report is in columns 2-4.

When we look at the ratio of income increases over increases in rent, we can see a project a picture of what areas still have space to grow.

Income / Rent / Median Home Price >> Texas comes up strong with Jacksonville and Baltimore notable in the 3rd and 4th spots.

Some quick takeaways:

- Dallas Ft. Worth has a healthy median wage with rents that are (most likely) affordable to the residents. The reasonable cost of entrance makes it a safe market for an investor who wants to serve the Hispanic community.

- Washington DC has seen tremendous rent / income ratios, but it's also a very high cost to entry. Much like its high-end, east-coast counterparts. It's a valuable market. It requires a huge up-front investment.

- St. Louis, despite its low housing cost, has rents that have massively outpaced its income growth. There is an eventual glass ceiling that is hit in these situations (if not already).