What factors affect the multifamily market the most, and how?

[Charles Stanback]

I’ve been doing a lot of research about the multIfamily market in my local area (Fort Worth, Texas). After listening to the BP podcast with Michael Becker, I realized I needed a better understanding of while the market moves as a whole. Anything helps!

[Armando Payano]

Originally posted by @Charles Stanback:

@Armando Payano

Once you know those things, how do you interpret them?

 The good thing about these criteria is that they are mostly static as opposed to often changing.

Population: Look for population to be steadily growing = increasing customers.

Jobs: A stable job market = a stable tenant base.

Supply: Too much product = increase in concessions / decrease in rental income to attract solid, long term tenants.

Demand: Product type. How much would tenants prefer to live in one location vs another. 

This is a 30k foot view. Finding the right cocktail of these components, not sacrificing on jobs is key. Be mindful that, imo, real estate is a 'slow' moving vehicle when analyzing compared to say analyzing other business's.

Good luck.