Does anyone here have experience in the corporate world looking at economic markers of an area? I know that major chains invest in areas where they can make money, so a Costco, Whole Foods, or Trader Joes signifies a neighborhood getting better while a McDonalds, dollar store or oil change place does not. I'm looking to use these as a part of my case for why certain areas are worth investing in. In New Orleans I was on the board of one of our neighborhood organizations, and when approached by Whole Foods they let us know there were requirements for parking, average income, and traffic.
Making a data-oriented case for a market is always a good idea. For the most part, I think real estate investors around here will look for certain things:
Jobs in the area
Landlord friendly government(s)
Other investment and retail buyers entering a market
There are also 'gut feelings' people have when they're raised in an area or have a lot experience with this. I hear 'good gut feelings' about how Pittsburgh, Minneapolis, and Salt Lake City are undervalued, for instance.
Unfortunately, no amount of data can make a case for the area if you don't have a team on the ground. I'd rather invest in a rough area with a good team than the best area with no team. I also think the team/network oriented approach helps to narrow the search.
Those who spend their time analyzing every market find it harder to take action in one of them.
I work as a real estate market analyst focusing on apartment development. PM me if you'd like to discuss anything specific.
A strong and diverse economy and population growth are definitely important when looking at apartment investment. Pittsburgh has a strong local economy (tech, education, healthcare, etc) but has very limited population growth. There has been a significant amount of apartment development during the past few years with more on the horizon. The metro vacancy rate is still healthy, I believe below five percent. Economic markers are important but I think there is sometimes more to the story as @Trevor Ewen said.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.