People.
The U.S. Census indicates that our population is increasing by approximately three million people each year. All those people will need a place to live, work and shop. So there will continue to be demand for housing and that growth will continue to provide opportunities for real estate investors.
The primary factor driving real estate appreciation is migration. When you have more people moving into an area than those moving out (or passing away), you drive up demand which will ultimately increase home values.
But what drives migration?
Jobs! The largest determinant of migration is job growth. People go where the jobs are, and retailers go where the people are.
Demand for housing will continue, the question is where?
Even though U.S. job growth has been down recently, Norada’s goal is to find where job growth is up. So we begin by identifying markets with solid job growth and narrow our focus to neighborhoods that provide solid real estate investment opportunities.
Exactly, people needs shelter, so wherever they go find jobs, they need to have a house too. This gives real estate agents an opportunity to sell houses. This drives the real estate market.