Fort Worth, TX · Member since 2018 · 8 posts · 0 votes
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!
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.
Lender · Arlington, TX · Member since 2018 · 465 posts · 184 votes
7y
I don't know about multifamily, but for sf rentals it a good market, rents are growing, population is growing, lots of new development, but prices are still lower in redeveloping neighborhoods than other parts of dfw.
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.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
7y
On just the local level: Job growth and type of jobs, population growth and trends, government planning and development trends, crime, schools, current amount of new building and permits, rent affordability vs home affordability, vacancy rates, taxes. Look for areas in your market that are trending or new initiatives by the gov't to help change/improve areas. Every city has opportunity
Fort Worth, TX · Member since 2018 · 8 posts · 0 votes
7y
@Caleb Jordan @Percy N. @Armando Payano @Alina Trigub @Todd Dexheimer
I really appreciate all of the info!
In my market as a whole population is definitely on the rise and has been for a while. Jobs are here and the city has put an emphasis on bringing and keep higher paying jobs. The first ever developmental plan for the city was released not too long ago, so I’ve been looking into that to focus in on on a sub market.
I’ll definitely start paying more attention to schools/crime and the supply/demand in certain areas.
Thanks again for all of the help!