Where should you build your next multifamily community? We all know the 3 keys of real estate, and multifamily projects are no different. Location makes all the difference. Make your investment go further by deciding on the right market. Here’s how you can find and identify emerging markets and communities.
Check out the employment trends and job statistics
If you’re trying to determine whether a location is a potential emerging market that is worth investing in, the first place you should look is at the employment data for the area. If a location is consistently adding jobs, has had a shrinking unemployment rate for several quarters, is home to numerous diverse commercial sectors, and sports an unemployment rate below the national average, it’s a safe bet that it will be a strong housing market as well for some time to come.
Examine trends in demographic data
It’s important to note, however, that employment statistics and jobs numbers don’t tell the whole story of a place. Examining broader trends in demographic data can help you fill in various blanks and paint a more complete picture that will help you determine if the location would be a wise investment. You’ll want to know a variety of factors, such as what are the overall population change trends over the last decade? What is the age and income breakdown of the location, and what percentage of the residents moving to the area are younger adults? When you understand what types of people have been in the area and are moving to it, you can see what the long-term makeup of the place is likely to be.
Location remains the most important element in real estate and multifamily projects are no different. Basic aspects of a site evaluation range from accounting for lot size for parking spaces, a retention pond, commercial vehicles, and more, to environmental elements including soil composition, protected wetlands or wildlife, flood zones, and contaminants. Different locations may accommodate different aspects of your site evaluation better than others. Future tenants will want a project with easy access to major highways and roads as well as recognition of historic architectural styles to blend with existing communities. Of course, you should also be aware of current zoning and regulation restrictions for areas you are considering for future projects.
Partner with a firm that conducts extensive market research
If you want to go into your next real estate project with the full confidence that you’ve made the most informed decisions possible, you can’t do it alone. You need the help of a team that has a history of conducting thorough and accurate market research about the locations you are considering. The more you know about the community you end up selecting for your project, the higher the likelihood that you will maximize the value of your investment. At Live Oak Contracting, our team prides itself on our experience with researching potential sites, and we are ready to put our knowledge and resources to work for you. Contact us today to find out more about how Live Oak Contracting can help you achieve your next project’s goals.