selecting a market to invest in part 2

4 Replies

Quick question regarding population growth: When determining a market to invest in what is more important population growth or the actual population size?


For example, the top two MSAs with the largest population growth from 2010 to 2016 (estimated) is The Villages, FL (32.7%) and Austin-Road Rock TX (19.8%). However, The Villages, FL only has an estimated population of 123,996 while Austin-Road Rock has 2,056,405. As an investor wouldn't Austin-Road look more appealing to you even though the growth is smaller because of the difference in size of population?  

@Jason Ma   Good question!  All depends on your strategy and how you want to compete in the market place.  A number of investors in Austin will tell you that RE has been bid up to a point where the deals don't make sense and have moved on to smaller submarkets.  Moving on to smaller submarkets creates a new challenge with fewer renters and jobs to drive growth.

Looks like the Villages in about an hour from Orlando and ninety minutes from Tampa.  Is this a retirement community?  

While population growth is an important factor, its not the whole story.  

What type of properties?  What is the demographic of renters? What about job growth?  Job diversity?  etc, etc

I haven't researched that ar into the sub market .  I'm still trying to learn the proper way to research market.

Originally posted by @Ryan Cox :

@Jason Ma  Good question!  All depends on your strategy and how you want to compete in the market place.  A number of investors in Austin will tell you that RE has been bid up to a point where the deals don't make sense and have moved on to smaller submarkets.  Moving on to smaller submarkets creates a new challenge with fewer renters and jobs to drive growth.

Looks like the Villages in about an hour from Orlando and ninety minutes from Tampa.  Is this a retirement community?  

While population growth is an important factor, its not the whole story.  

What type of properties?  What is the demographic of renters? What about job growth?  Job diversity?  etc, etc

One good thing about retirement communities are steady checks.

Originally posted by @Shawn G. :

@Ryan Cox  

Yes, The Villages is a retirement community.

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