Now that you’ve got a handle on how important population is to the real estate market it is time to move on. And the next important market indicator is….

Employment Rates: If population can have effect it stands to reason that the employment rate will also be a factor. If there is a high unemployment rate in a city, it is not very likely that people will be moving there. It is also understandable that with a high unemployment rate the demand for properties will go down (both on a commercial and residential front).

When looking at the data it is very important to not only look at the current statistics but also the trends. If there has been a decrease in the unemployment rate for the past 3 years then it could be lucrative opportunity. But if you see an increasing unemployment rate over the past 3 years, it is likely a region you will want to avoid.

Here are some important topics to think about when looking at the date:

• Are any companies announcing large expansions?
• What are the major industries located near the region and how have these industries been doing over the last few years?
• Are there a lot of new jobs opening or just the filling of old unoccupied jobs?
• Are there any developments in the area that will create more jobs or that could lead to more jobs?

To find this information you should try contacting the local government, as they often track this kind of data. Another big source of information is found at the Federal level from the U.S. Census Bureau or Statistics Canada, depending on where the region is.

Part I: Population <<

Part III: Personal Income >>

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Filed under: Due Diligence, Investments, Real Estate