Values in certain markets are beginning to detach from fundamentals. These markets are could be in a Bubble and should be approached cautiously.
The Bay Area is the economic powerhouse of the United States. It’s stranglehold over corporate expansion (IPOs) and innovation (tech startups) is increasing each year. This bodes well for real estate investment in the area.
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.
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.