Analyzing City Markets

[Josh Parker]

Fairly new to bigger pockets, this is my first post . I do not see too many post on how to analyze city markets. For example, like a clear list of bullets of general data at least.

I’m thinking that whatever strategy that, I or you, are practicing at the moment would direct us to move closer to the specific deeper data needed. No matter the place, in-state or long distance. But, something like a dry business plan for any city you want to analyze.

Or am I attack this topic the wrong way?

What are the basic key points to study when analyzing city’s ?

[Brenden Mitchum]

Hey @Josh Parker, welcome to the BP community!

There are many indicators you can look at when analyzing different markets. The 6 that I have seen repeated most frequently are:

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

This isn't to say you can't find a fantastic market that does not meet these six requirements but this should definitely get you started. Also, keep in mind that COVID has really changed these numbers for many markets. So, what could be more important than finding markets that satisfy this criteria is finding markets that have not been effected as much by COVID (Atlanta is a great example of this).

Please, feel free to message me anytime if you have other questions or just want to chat!

[Scott Johnson]

Quote from @Brenden Mitchum:

Hey @Josh Parker, welcome to the BP community!

There are many indicators you can look at when analyzing different markets. The 6 that I have seen repeated most frequently are:

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

This isn't to say you can't find a fantastic market that does not meet these six requirements but this should definitely get you started. Also, keep in mind that COVID has really changed these numbers for many markets. So, what could be more important than finding markets that satisfy this criteria is finding markets that have not been effected as much by COVID (Atlanta is a great example of this).

Please, feel free to message me anytime if you have other questions or just want to chat!

 Hey, Brendan! 

I appreciate this information! Any chance you can elaborate on where we're getting this information? 

Normally I use Macro Trends for population growth and the Bureau of Labor and Statistics for jobs growth. 

Also, have you found a good place to get Rental Growth by city?