Market Resaerch - Data Gathering

[Drew Steusloff]

Hi BP,

I wanted to reach out to the community for input on how they analyze potential markets and what critical data points should be looked at before considering to invest in an area. So far I have used Census.Gov to gather general info on income, demographics, education etc. about potential areas, but the information here is too broad and doesn't narrow in deep enough to assess areas that are more speculative or transitional. Additionally, I have used the listing resources (Zillow, Realtor, Mashvisor) for information on purchase price and potential rental income. Does anyone have sources for market research they find more reliable, or any types of specific data that I should study and emphasize before considering and investment?

Thanks,

[Brenden Mitchum]

Hey @Drew Steusloff!

Here is my short list of things that I looked at when analyzing markets, which eventually landed me on Atlanta. These are definitely not the only factors you want to look at but I believe this will get you started.

1. Population over 100k

2. .5% or more year-over-year (YOY) population growth

3. 1% or more YOY median household income

4. 2% or more YOY job growth

5. 2.5% or more YOY median home value

6. Decreasing crime index

There are plenty of good sites to do your research, like data usa, city-data, best places, neighborhood scout. But these do only provide fairly broad scopes. To really focus in on submarkets within an MSA, your best bet is to get boots on the ground. This can be through actually driving the neighborhoods yourself or you can speak with Realtors and property managers that specialize in these areas. When it comes to rent comps, rentometer is pretty good for this. You can also ask your agent to provide you with rental comps. Same goes for sales comps. 

I hope this helped a bit. Feel free to shoot me a message if you have other questions or want to discuss market research further!