Successful real estate investing is all about finding a neighborhood early in its growth cycle. A good way to do that is by evaluating “Value Ratio” – the relationship between home values and income levels across different neighborhoods.
Want to understand the growth prospects of your real estate investment? Start by understanding the city’s Tradable sector.
Economies in the northeast have been hit significantly hard in the wake of the COVID crisis. Real estate markets will soon follow suit as federal fiscal stimulus abates.
The term “Tech Hub” gets thrown around loosely these days. Which markets have the true characteristics? Read more to find out.
Real estate markets in areas with a youthful population will likely enjoy outsized growth into the future. Millennial Share, the percentage of population between 25 and 44, is the most important indicator of this growth potential.
The May 2020 jobs report highlighted the vast regional differences in economic activity in the COVID landscape. Cities in the Sun Belt continue to outperform those in the Midwest and Northeast. The longer these differences persist, the more likely it is that people and businesses migrate south.
Market exposure to the negative health and economic consequences from COVID varies across the country. Sprawling metros with younger and healthier populations – such as Salt Lake City and Austin – have a built-in advantage against the virus compared to areas like New York and Pittsburgh.
Rust Belt cities in the Midwest and Northeast are experiencing depression-level job losses while the Sun Belt has been left relatively unscathed. These contrasts have been masked to date by generous fiscal stimulus programs. However, these varying economic prospects will result in population and business migration to the Sun Belt. Real estate growth and capital will follow suit.
Luxury apartments are facing stiff headwinds from supply expansion, escalating rental rates, and a fickle tenant base. The current economic recession will exacerbate these issues and lead to valuation haircuts across the space over the next two years.
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