When it comes to residential real estate investing, the most telling numbers aren’t always in the price tag. In fact, this figure only tells part of the story, while others— like the area’s employment trends— may be more decisive in determining your investments potential.
To be sure, getting a great deal on an investment home means little if the locals can’t afford to rent it! So it’s important to study a market’s employment trends before deciding to invest. Here’s some tips:
- Consider if companies are steadily hiring or letting workers go
- Read reliable market research reports and verify that there is healthy job growth
- Examine recent business news to determine where the business-friendly markets are
- Find out where the major companies are moving to
Compare employment trends in a market you’re considering to the national average to determine growth
Here are examples of job growth research on key markets, brought to you by HomeUnion’s Research Services team:
Hailed as the capital of the South, Atlanta is a great example of strong job growth— with the spike in new jobs having resurrected the city’s stagnant rental market. Atlanta is projected to outperform national levels in 2017. This year, 75,000 new positions are expected, a 2.8% increase over the 70,000 spots created in 2016. Healthy demand in education and financial services sector support continued growth. Insurance giant Anthem Inc will invest $20 million in a new software development center in Midtown.
Moving a bit north from the Deep South, we find Raleigh, North Carolina. Its job growth— 2.4% payroll expansion— supports strong demand for rental housing (especially in the metro area). Key companies in the city’s Research Triangle park will provide many new employment opportunities, across a variety of different sectors. Tech players like Citrix Systems will add hundreds of new jobs alone in the next five years.
Turning our gaze out west, we see that Austin, Texas is also experiencing excellent job growth. A large tech base (Dell, Oracle, and Apple all have a presence here) supports Austin as one of the fastest growing job markets in the U.S. In fact, Samsung has announced a $1 billion plan to expand its mobile chip division, resulting in 500 direct jobs beginning in early 2017. This year, 36,000 new positions will explode renter demand for rentals situated in the trendy metro-area. With more and more major companies starting to occupy this hipster-professional city, high-paying business positions will emerge — leading to an even more stringent demand for rental properties.
Time-Saving Market Research
Performing proper market research takes time and resources. Busy professionals wanting to perform their due diligence while also working a heavy schedule aren’t likely to be able to. Enter HomeUnion, who’s already done the work for you. Start improving your investing IQ by downloading our National Single-Family Market Report here.