First off I would like to welcome Cameron to the blog, he has already made his first post so I hope you like it. Him and I have experience and knowledge in different areas so we should be able to expand our range of topics.

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So now that you’ve taken a look at the population growth rate and the employment rate, is time to tackle another market indicator. So the new reckoning force of real estate predication is… Personal Income. Similar to the first two indicators, this one is pretty straight forward (don’t worry the next 2 will be more exciting).

As an individuals income increases they can afford a higher cost of living. This includes the cost of housing. Just like population you want to have an increasing personal income. The indicator is interrelated to the first two, for example; if the unemployment rate is at all time low it means that there is a high demand for workers, which results in an increase in personal income.

When researching this data you should consider:

• How the personal income level compares to other cities and/or states/provinces?
• How the personal income level has changed over the last couple of years?
• What events or developments could have led to or will lead to a change in personal income?
• How does the current years trend compare to previous years?

Once again you can find the information from 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 II: Employment Rate <<

Part IV: Total Sales >>

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Filed under: Due Diligence, Investments, Real Estate