{"id":185586,"date":"2025-11-10T13:16:42","date_gmt":"2025-11-10T20:16:42","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185586"},"modified":"2025-12-02T13:34:56","modified_gmt":"2025-12-02T20:34:56","slug":"4-metrics-i-use-to-analyze-a-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/4-metrics-i-use-to-analyze-a-market","title":{"rendered":"4 Metrics I Use to Analyze a Market"},"content":{"rendered":"\n<p><em><span data-preserver-spaces=\"true\">This article <\/span><span data-preserver-spaces=\"true\">is presented<\/span><span data-preserver-spaces=\"true\"> by <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/suite.walkerdunlop.com\/?utm_source=bigger-pockets&amp;utm_medium=article&amp;utm_campaign=wdsuite-launch&amp;utm_content=wdsuite&amp;sf_campaign=701UY00000QNliSYAT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Walker &amp; Dunlop<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Before buying any property, the investors should ask themselves: Is this a good market? Understanding the local fundamentals is critical if you want to avoid overpaying or investing in a declining area.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In order to<\/span><span data-preserver-spaces=\"true\"> be successful, you need to know the economic health, tenant profile, rent trajectory, and market potential of an area before you ever run the numbers on a deal\u2014whether you are buying a 5-unit property in Texas or a 100-unit apartment complex in Georgia.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tools like WDSuite from Walker &amp; Dunlop make that process easier. This free platform lets investors analyze institutional-level data with just a few clicks. Instead of researching multiple sources, WDSuite brings employment trends, tenant credit scores, and population shifts into one dashboard.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here are five market analysis metrics every investor should <\/span><span data-preserver-spaces=\"true\">be using<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> how to find them in WDSuite.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Macroeconomic Indicators<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Macroeconomic indicators include employment statistics like job growth, unemployment rates, and labor force participation. These reveal the broader economic health of a market.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why it matters<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Employment <\/span><span data-preserver-spaces=\"true\">is directly tied<\/span><span data-preserver-spaces=\"true\"> to rental demand and tenant stability. If job opportunities are growing, people move in. If unemployment is rising, vacancies and missed rent payments may follow.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What indicates a strong market versus a weak one<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong market: <\/span><\/strong><span data-preserver-spaces=\"true\">Low and declining unemployment, steady job growth, expanding labor force<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Weak market:<\/span><\/strong><span data-preserver-spaces=\"true\"> High unemployment, job losses, shrinking labor force<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to use WDSuite<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Search<\/span><span data-preserver-spaces=\"true\"> for a property <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> the macroeconomic benchmarks are displayed directly in the property overview.<\/span><span data-preserver-spaces=\"true\"> You\u2019ll find local job growth compared to the national median, labor force trends, and unemployment rates at the county level. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> helps you assess whether demand for housing is likely to rise or fall.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Radius-Based Demographic Insights<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> includes age distribution, household sizes, population growth, and income levels within <\/span><span data-preserver-spaces=\"true\">one<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">three<\/span><span data-preserver-spaces=\"true\">, or <\/span><span data-preserver-spaces=\"true\">five<\/span><span data-preserver-spaces=\"true\"> miles <\/span><span data-preserver-spaces=\"true\">around<\/span><span data-preserver-spaces=\"true\"> a specific property.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why it matters<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Demographics determine the type of housing in demand. For example, younger populations may favor apartments, while older demographics might prefer single-level homes. Income levels influence rent ceilings, while household size affects <\/span><span data-preserver-spaces=\"true\">bedroom count needs<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What indicates a strong market versus a weak one<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong market:<\/span><\/strong><span data-preserver-spaces=\"true\"> Growing population, rising or stable income levels, high renter population<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Weak market:<\/span><\/strong><span data-preserver-spaces=\"true\"> Declining population, stagnant or falling incomes, aging or shrinking renter base<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to use WDSuite<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Search for a property and navigate to the <\/span><span data-preserver-spaces=\"true\">demographic analysis in<\/span><span data-preserver-spaces=\"true\"> the <\/span><span data-preserver-spaces=\"true\">neighborhood tab<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> It will break down population changes, age brackets, household income levels, and size trends, all compared to the metro average. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is essential for aligning your investment strategy with local renter needs.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Tenant Credit Quality<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This metric shows median credit scores and loan payment delinquency rates for renters, helping you assess the overall financial stability of <\/span><span data-preserver-spaces=\"true\">residents of<\/span><span data-preserver-spaces=\"true\"> a property <\/span><span data-preserver-spaces=\"true\">in comparison<\/span><span data-preserver-spaces=\"true\"> to renters in the area.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why it matters<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Credit scores are an estimate of the likelihood <\/span><span data-preserver-spaces=\"true\">for<\/span><span data-preserver-spaces=\"true\"> a consumer to default on a loan payment in the coming 30 days.&nbsp; <\/span><span data-preserver-spaces=\"true\">If local tenants <\/span><span data-preserver-spaces=\"true\">struggle with<\/span><span data-preserver-spaces=\"true\"> low credit scores or missed credit card payments, there is a risk <\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\"> they won\u2019t be able to make consistent rent payments.<\/span><span data-preserver-spaces=\"true\"> On the flip side, knowing renters have strong credit scores and low delinquency rates can support stable rent collections and low vacancy rates.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What indicates a strong market versus a weak one<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong market:<\/span><\/strong><span data-preserver-spaces=\"true\"> Average credit scores above 650, consumer delinquency rates below the metro average<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Weak market: <\/span><\/strong><span data-preserver-spaces=\"true\">Credit scores below 600, consumer delinquency rates exceed the metro average<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to use WDSuite<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Search for a property and navigate to the multifamily tenants tab. You\u2019ll find renter credit scores aggregated at the property level and consumer loan payment delinquency rates all as recently as last month. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> can help you minimize default risk.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Market Rent Trends and Forecasts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> measures historical and current rent levels in your target area.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why it matters<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rent growth shows demand and pricing power. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> directly affects your cash flow and projections.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What indicates a strong market versus a weak one<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong market:<\/span><\/strong><span data-preserver-spaces=\"true\"> Steady or increasing rent growth and forecasts<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Weak market:<\/span><\/strong><span data-preserver-spaces=\"true\"> Flat or declining rents<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to use WDSuite<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Search for a property and navigate to the <\/span><span data-preserver-spaces=\"true\">demographic analysis in<\/span><span data-preserver-spaces=\"true\"> the <\/span><span data-preserver-spaces=\"true\">neighborhood tab<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> &nbsp; <\/span><span data-preserver-spaces=\"true\">The rent trend and forecast for the 1, 3, and <\/span><span data-preserver-spaces=\"true\">5 mile radius<\/span><span data-preserver-spaces=\"true\"> can be found<\/span><span data-preserver-spaces=\"true\"> in the housing section.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Easy Access to Market Data Matters<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Successful real estate investing is about managing risk, which starts with having the <\/span><span data-preserver-spaces=\"true\">right<\/span><span data-preserver-spaces=\"true\"> information. In the past, accessing this level of market insight meant hiring a research analyst or buying expensive reports.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">WDSuite removes that barrier. With just a few clicks, investors can assess market strength, tenant quality, rent potential, and resale comparables. WDSuite is free to use, so there is no reason not to <\/span><span data-preserver-spaces=\"true\">use it<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Instead of flying blind, you can make data-informed decisions that protect your capital and guide your long-term strategy. <\/span><\/p>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/suite.walkerdunlop.com\/?utm_source=bigger-pockets&amp;utm_medium=article&amp;utm_campaign=wdsuite-launch&amp;utm_content=wdsuite&amp;sf_campaign=701UY00000QNliSYAT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">WDSuite<\/span><\/a><span data-preserver-spaces=\"true\"> is one of the best tools you can have in your analysis toolkit, whether you\u2019re buying your first multifamily property or adding to a growing portfolio.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article is presented by Walker &amp; Dunlop. Before buying any property, the investors should ask themselves: Is this a good market? Understanding the local fundamentals is critical if you [&hellip;]<\/p>\n","protected":false},"author":273816,"featured_media":185577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7389],"tags":[],"class_list":["post-185586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/273816"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=185586"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/185577"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=185586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=185586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=185586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}