Back in February we posted an Axiometrics chart plotting the revenue growth vs. job growth in leading apartment investment markets in the US. They were out last week with an updated chart but not just in the way we might think since the numbers are Axiometrics’ 2013 forecasts for revenue and job growth updated through May this year. To me the real ‘update’ is that they reversed the axises on the chart and I think it makes more sense laid out this way:
Before I get sidetracked onto a long discussion on the importance of understanding just how differently a single set of data can look depending on how it’s charted, just one more observation on this chart….
… And that is I’m not sure why Point Hope, Alaska (PHO) is worthy of a plot on this chart instead of larger and more closely followed markets like Phoenix (PHX) for instance 😉 Apparently Point Hope’s apartment investment market is doing quite well however!
For the data tables behind this chart as well as a look at how potential construction worker shortages are starting to appear on the horizon see the Axiometrics piece here.
What this means for apartment building investors: Job growth and the level at which new units are being built in a market are the two critical statistics in gauging future revenue growth. Knowing where your market is in these terms is also critical for understanding where you are in the apartment building investment cycle; and knowing where you are in the cycle is The Most Important Thing in real estate investment.
For our Special Report on The Most Important Thing send us a message with ‘Most Important Thing’ in the subject line.