How to analyse different real estate markets?

Question

How do I analyse different real estate markets? Yes I know I need to look at job growth, migration etc everyone says the same thing but how exactly do I find this out?

For example let’s say investors want to research job growth in the Texas market I highly doubt that they just search up Texas job growth on google and call it a day. Do you ask brokers? But then again brokers may be biased towards the markets they get listings from? Is there a national database? Do you just visit areas and see if new shopping centres are being built or business moving into the area?

IF IT HELPS THEN I’M LOOKING TO EVENTUALLY INVEST IN APARTMENT BUILDINGS. I AM 17 TURNING 18 NEXT YEAR ACTIVELY LOOKING FOR JOB WHEN I GO TO UNIVERSITY IN SEPTEMBER.

Joe Villeneuve · Answer

I don't look at , "  job growth, migration etc.."  since they don't mean the same thing to every market, because every market is different based on who lives in that market.  The only ones that can tell you what/if any of those things matter, are the people that live (rent, buy) there.  How do they tell you?  They tell you based on what they are willing to pay in property cost and/or rent.

Now.  None of the above will tell you if a market is a good/great place to rent or invest.  You don't buy based on property value, high or low.  You don't nuy on rents, high or low.  You buy based on that market's ability to deliver the largest spread between cost to get in, and cost to get out.  The in/out refers to your money.  It's called profit.

In the case of cash flow, it's based on that market's ability to deliver the largest spread between cost to hold, and cost to get out.  The in/out refers to your money.  It's called cash flow.

Trevor Ewen · Answer

Account Closed

Bureau of Labor Statistics and Census data are good places to start. There are other data sets, I would definitely look up state and city data sets for your target areas as well. You have to do the hard work to identify what you are looking for and what are the best data sets to accomplish that. A good process would be to ask a question (even a fairly simple one) and then find all the data that would make you fairly confident as to the answer to that question.

Trevor Ewen · Answer

Account Closed

There is government data, which is free, to start.

Keep in mind that numbers are relative in this case. Unemployment is going to go way up! The question is what kind of communities have less or more than others, not the absolute number (although some absolutes could be outside hard limits for you).

For instance, if you had told me to look into a market with steady 8% unemployment in December I would've thought it's not a great market. Within a month or two, that'll be a pretty decent number based on what I have seen.

Account Closed · Answer

How do I access the government data?

Account Closed · Answer

Thanks I will search up Texas A&M and I plan to purchase a building and actively manage it. I will start deals with my own capital, then syndicate with partners and eventually create funds where I pool capital and buy huge buildings.

Ellis San Jose · Answer

Texas A&M has a school of real estate has great data about all the metrics real estate in Texas cities. There is usually a university that gathers data in each state if you want to study the statistics.  IMHO that is less important than understanding how to uncover profitable deals, evaluate them, & how to actually execute & operate.  If you are thinking a broker is going to lead you to the best deals, be prepared to be disappointed. Are you planning to purchase a building & actively manage it?Or are you planning to buy into a syndication as a passive investor?

How to analyse different real estate markets?

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