When it comes to investing in real estate, you must focus on the following items:
- Employment growth
- Population growth
- Demographic trends
- Interest rates / mortgage rates
- Valuations / cap rates / net rental yields
- Inventory
With interest rates rising thanks to the Federal Reserve, inventory rising as more real estate owners try to take advantage of high prices, it is now more important than ever for real estate investors to focus on demographic trends.
The main demographic trend is moving away from expensive coastal city real estate markets in favor of inexpensive real estate markets in the heartland of America. Cities like San Francisco, New York City, Seattle, LA, and Washington DC are getting too crowded. Prices are too high and people are getting fed up.
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