What are some good indicators for a growing market?

What are some good indicators for a growing market?

Investor · Member since 2018 · 53 posts · 52 votes

What are some good indicators for a growing market? Some indicators I search for are rising property prices and an increase in construction. Are there any others that can help with determining a growing market. 

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Realtor · Cincinnati, OH · Member since 2022 · 81 posts · 58 votes
3y

Major site starts. Large projects now take a decade or more. Find the $b+ projects, economic booms will follow.

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  • Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Bradley Jernigan:

    What are some good indicators for a growing market? Some indicators I search for are rising property prices and an increase in construction. Are there any others that can help with determining a growing market. 

    U Haul trucks. Which direction is cheaper to rent, to the destination or from the destination.
  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Looking at its job market, and how many younger people are moving there. If the city is buzzing, and feels exciting when you go to it, chances are the job market will follow.

  • Realtor · Cincinnati, OH · Member since 2022 · 81 posts · 58 votes
    3y

    Major site starts. Large projects now take a decade or more. Find the $b+ projects, economic booms will follow.

  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y
    Quote from @Russ Kitzberger:

    Major site starts. Large projects now take a decade or more. Find the $b+ projects, economic booms will follow.

    I've used this thought process in a lot of my residential development around Scottsdale and it has not wronged me yet.

    Always figured that the groups taking on these $1B+ developments have underwriting teams that are far more sophisticated and thorough than I'll ever be. So probably not a bad plan to follow their lead. 

  • Investor · Winter Park, CO · Member since 2023 · 24 posts · 11 votes
    3y

    Hey @Bradley Jernigan! Here are some metrics we track to identify an investment market: 

    1. Population Growth - https://www.census.gov/data/tables.html

    2. Job Growth - https://www.bls.gov/

    3. Median Household Income Growth - www.City-Data.com

    4. Median House Value Growth - www.City-Data.com

    5. Crime Index - www.City-Data.com

    6. Rent Growth - https://www.apartmentlist.com/research/national-rent-data

    7. Cap Rate - Brokers / Appraisers / PMs in your market

    8. Personal Preference - Do you want to spend time there?
    --
    Please feel free to DM me with questions!

  • Investor · Las Vegas, NV · Member since 2022 · 47 posts · 23 votes
    3y
    Quote from @Dani Murphy:

    Hey @Bradley Jernigan! Here are some metrics we track to identify an investment market: 

    1. Population Growth - https://www.census.gov/data/tables.html

    2. Job Growth - https://www.bls.gov/

    3. Median Household Income Growth - www.City-Data.com

    4. Median House Value Growth - www.City-Data.com

    5. Crime Index - www.City-Data.com

    6. Rent Growth - https://www.apartmentlist.com/research/national-rent-data

    7. Cap Rate - Brokers / Appraisers / PMs in your market

    8. Personal Preference - Do you want to spend time there?
    --
    Please feel free to DM me with questions!


    I second these metrics, but most of those resources have outdated info with a 1-3 year lag. CoStar, Yardi, and IRR are a few resources that have more up-to-date data. They are paid resources, but produce free quarterly reports you can download.

  • Member since 2022 · 405 posts · 455 votes
    3y

    Look to see if the city has a growing job market. Are big companies moving to the city? Look for cities with a diverse selection of employers as well. 

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