Inman

AptPrep: Top real estate investment markets

Inman

Editor’s note: In compiling the "10 Best Markets for Real Estate Investors" report, Inman News reached out to a range of data providers and online real estate sites that supplied statistics and charts to identify real estate markets that may be well-suited for investors. The following chart and accompanying methodology were provided by property investment assessment company AptPrep.

Best U.S. Markets to Currently Invest In
Rank City State
1 Raleigh-Cary N.C.
2 Durham N.C.
3 Oklahoma City Okla.
4 Austin Texas
5 Nashville Tenn.
6 Houston Texas
7 San Antonio Texas
8 Fort Worth Texas
9 Laredo Texas
10 Seattle Wash.
11 Portland Ore.

Source: AptPrep.

Methodology:

The criteria of (our) analysis and conclusions are based on four key indicators. Three are macro and one is real estate-specific.

The macro indicators are:

1. Unemployment rate;

2. Population growth; and,

3. Economic trend index (this index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary, and technology growth).

The real estate indicator is:

4. Foreclosure level.

The reason for choosing these four factors to drive (our) criteria is that for an investor who wants to invest in a market right now, (AptPrep wants) 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 same markets is still sufficiently healthy to be able to find a bargain for a little while longer (low-to-moderate level of foreclosure would allow this).

Sources include 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.

Source: AptPrep.

Read the full report: "10 Best Markets for Real Estate Investors."

View more charts provided by data companies and online real estate websites: