How to best analyze a market

[Nick Fitzpatrick]

I am curious how everyone here analyzes a market when deciding where to purchase? Do you first look at the state as a whole and look at population, job growth, median or average income, % renters, property taxes ext. Or do you look directly as the micro climate that is the city or county area you would be investing in first. Also what resources are there out there to help with this, I have been just pouring over US Census Bureau Data and Googling and would love to hear how others here on BP are getting their information.

[Mike D'Arrigo]

@Nick Fitzpatrick In my opinion, the state level is too broad to look at. However, you do want a business friendly state and one that does not have onerous government regulations. But in general, you will find good markets and bad markets in nearly every state. I start at a Metropolitan Statistical Area level (MSA) and drill down from there. The top 3 things I look for in the MSA are 1. Population trends and net migration. 2. Employment trends. Not just unemployment rates but more importantly number of jobs and job growth. 3. Income trends. Are incomes increasing. The next layer I look at is price to rent ratios, property taxes and insurance, landlord/tenant laws. There's a lot more factors to consider, but these are the major ones to start narrowing market choices down. I have a report on how to evaluate and choose a market that I'll be happy to send you.

Mike