Factors that Define an Emerging Market


Demographics
 What is the net migration of employees to the city/area of interest?
 What is the pattern of population growth?
 How much income does the population generate?


Economic Development
 What are the major industries in the area of interest?
 Are there large or important companies that are moving to the area?
 Is there a balanced mix between private and public employers?
 Is the state/county business friendly?






Affordability
 What is the median home price in the area of interest?
 What is the median income per capita in the area of interest?
 What is the ratio of the debt of housing to income (DTI)?


Rental Market Trends
 What is the ratio between the property's purchase price, and the monthly rental income?
 What are the vacancy rates for the city/area of interest?
 What are the vacancy rates for the property of interest?
 Are recent changes in the financial sector affecting rent prices?
 Where is the rental pool coming from? Universities? Military bases?






Infrastructure
 How much money is being spent on roads, water supply, airports, etc?
 Is the current infrastructure sufficient for future population growth?
 Are there major thoroughfares that allow for easy navigation?


Undervaluation
 What is the percentage of appreciation in the last year? In the last five years?
 What is the relationship between the median home price to the median income?
 How significant is the potential for appreciation in the future?



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Capital Growth Investment
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