Here are seven factors that help make a real estate market good for investors:
Job creation above the national average.
Current and expected future population growth, also above the national average.
Building permits pulled, current construction activity, and forecasted growth in real estate development.
Government planning on both the state and local level, and whether or not the municipality you’re considering investing in is pro-growth or is over-burdened with red tape and regulations.
Housing affordability by using the price-to-rent ratio to compare median home prices to median rents.
Absorption rate, or the time that it takes for new housing that is brought to the market to be purchased or rented.
Vacancy rate, comparing the average in your target market to the overall average vacancy rate for the market.