Best U.S. Markets for Current Investment
Four factors were used to analyze the best cities for investors:
1. Unemployment rate
2. Population growth
3. Economic trend index – which ranks cities by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary, and technology growth.
4. Foreclosure level
The reason for choosing these four factors to drive criteria is that for an investor who wants to invest in a market right now, they want to identify markets — aka cities — where, on one hand, demand for real estate is expected to increase in the near future (increase in population growth, increase in employment, and high economic trends index will positively affect such demand); while, on the other hand, current supply in these markets is sufficiently healthy to be able to find a bargain for a little while longer (low-to-moderate level of foreclosure would allow this).
Sources: RealtyTrac, the Bureau of Labor Statistics, the U.S. Census Bureau via an online population chart, and the 2010 Milken Institute Best-Performing Cities Index.