Macro-Level Screening: Start With Economic Fundamentals

• GDP growth rate relative to the national average

• Unemployment rate trend (declining is bullish)

• Job diversity index: fewer eggs in fewer baskets

• Net domestic migration trend (inbound positive, outbound negative)

• Median household income growth rate

• New housing starts vs. demand growth, tight supply supports prices

Micro-Level Screening: Neighborhood and Street-Level Analysis

Once a broad market is identified, narrow your focus to specific submarkets. Neighborhood-level factors that predict growth:

Proximity to employment centers: Properties within commutable distance of major employers command premium rents

School district quality: Highly rated school districts attract family renters and homebuyers and support values even during downturns

Walkability and transit access: Growing importance to younger renters; properties near transit corridors command rent premiums

New development: New coffee shops, restaurants, coworking spaces, and boutique retailers are often leading indicators of neighborhood gentrification

Days on market trend: If homes in a neighborhood are selling faster each quarter, demand is rising

Owner-to-renter ratio shift: Increasing homeownership often signals neighborhood stabilization and improving values

Tools for Research

U.S. Census Bureau American Community Survey: Demographics, income, housing data

Bureau of Labor Statistics: Employment by metro area

Redfin and Zillow market reports: Days on market, price trends, inventory levels

CoStar and LoopNet: Commercial market data

Local county assessor records: Permit applications, sales history, ownership data

Walk Score, Transit Score: Walkability and transit data