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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