Best Market Metrics?

Original post

Hi all, I'm looking to purchase another rental property in the semi-near future, but I'm struggling to identify a stable enough market (I know, there's a lot going on current events-wise right now, and that could be playing a role). Everywhere I look online suggests a new city is really booming, but then another resource will not even mention that location, suggesting a new set of areas entirely...

Any thoughts on metrics that are truly indicative of stable growth? Vacancy rates? Employment trends? I want my decision to be as informed as possible, but I feel in over my head

Reply by Christina Calderon

Hi Jess, thanks for posting your question!

Two pieces of advice for you:

1. The ideal market for you might not be the same as someone else's - try to personalize your search based on specific goals. If you're looking for cash flow, you'll probably be looking at a different list of markets than you would if you're focused on long-term appreciation. Similarly, what's your niche - multifamily? Flipping? STRs? If you can get more specific about what exactly makes a market "stable" according to your goals, you'll find it easier to narrow the list.

2. Oftentimes, the best move for newer investors is to invest in the market you know. Where have you lived, spent time, and/or built connections? You'll probably have an easier path to success in those markets simply because you know them - you'll be able to make more informed decisions, find trusted people for maintenance, management, etc.

Good luck with your new investment, and hope you can update us on the forums what you decided!