Which are the top US real-estate markets that are currently in the
begining of an absorption economic cycle for rental housing?
The key characteristics for these markets will be :
- High growth rate of new professional jobs - as a result of major
corporations moving to the area (or local corporations expanding).
- The real estate market was until recently in a decline, or 'flat'.
It is important that both conditions are true - a turnaround has
started. The areas are in the begining phase of job growth, after a
period of decline (up to recently, or few years back).
Some additional factors identifying such markets:
- Strong 'pro business' climate. Local governement offers incentives
to businesses relocating to the area, or expanding.
- Cost of housing and average rents are lower than the national
average (due to real estate decline until recent years). Also
multi-housing prices are low relative to the
replacement/reconstruction costs.
- No new construction activity for multi-housing rental units, as a
result of depressed housing costs.
- Rental vacancy rates might be high, but are recently decreasing.
- Increased enrollment of K-6 students as families are moving to the area.
Ideally I would like to identify towns and cities (over 300,000
residents) in about 7-15 metropolitan areas, learn specific
information about large corporations moving to the area (last year and
coming year), and have links to statistics and economic information
resources supporting the factors described above. |