How to Determine a Real Estate Market?

Question

What are some key KPIs when determining a new real estate market?

Joshua Janus · Answer

@Gavin McDonald When researching a market, it is important to pay attention to the factors you highlighted above as well as what brings people to the city and what will continue to do so. If the price is relatively low/sqft and the city has a growing population and job market, the demand for homes will increase which leads to home appreciation. Also see how the specific market handles STR as that brings in a large section of rei investors and can drive prices up. Here is a quick analysis of my market. Paying attention to recent and upcoming capital investments by the city can also give you a good idea of where the money is flowing in the city and you can see if it is recovering or growing. Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs. https://www.dispatch.com/story... are a few more recent investments https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

Remington Lyman · Answer

I look for jobs and population growth. That is why I invest in Columbus, Ohio.

Brandon Goldsmith · Answer

I would narrow in on what type of strategy for REI you are looking to do and that might help point you in the right direction of a few markets. From there start to connect with people and target a few markets. There are a lot of good markets in Ohio you might want to check out. @Gavin McDonald

Patrick Drury · Answer

@Gavin McDonaldPopulation growth and job opportunities are the biggest ones. I live and invest in Columbus OH which is a good example of a place that fits those metrics.

Taylor L. · Answer

Population growth, job growth, rent growth, and stable or falling market vacancy. All great indicators to look for at a first pass.

How to Determine a Real Estate Market?

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