In today’s Daily Data Discussion post let’s shift back to the world of multifamily investing, and look specifically at the Demographic subscores in our Multifamily Market Fundamental Scoring system. 

When analyzing a market to rank its emerging / recovering market potential, we look very carefully at the demographics of the market.  We consider a number of factors:  market and MSA population, population growth rates from 2000-2004 as well as 2005-2009, the Population Growth Ratio, household and family makeup, demographic age banding in prime tenant age bands, median age, male / female ratios, as well as racial and economic diversity present in the market. 

We then assign a score to each data point, and combine those values to come with a “Demographic subscore” for the multifamily market.  The higher the value, the better the demographic data supports multifamily operations.  (We do calculate separate demographic scores for single family investors and homeowners). 

Here are the markets in our database as of today with the highest (best) Multifamily Demographic subscores -

1)  Raleigh, NC   31
2)  Gainesville, FL  31
3)  Tuscaloosa, AL  30
4)  Charlotte, NC  30
5)  Ft. Collins, CO  29

Database Average:  24.3
Database Median:  24

Tomorrow we’ll take a look at markets around the country with the lowest Demographic subscores in our proprietary Multifamily Market Fundamentals Scoring system. 

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