Today let’s shift back to the world of multifamily investing and take a look at a very important parameter all investors must consider when looking at a market - jobs (that’s a four-letter word) and job growth.   

Quite similarly to what was posted on Tuesday of this week - those who read our blog regularly as well as our newsletter subscribers are familiar with how we derive our Market Fundamental Scores; a number of metrics are considered in five different sub-categories and then totaled using a particular algorithm to derive the total score. 

One of the five sub-categories is the Jobs category.  In this category we consider total nonfarm job growth rates (6-month rolling average), unemployment (6-month rolling average), as well as growth rates and total employment at the sector and supersector level for each market (again using a 6-month rolling average).  The algorithm also considers 2008 Milken Best Cities rankings, the diversity of industry and employers in the market, and the leading employers in the community.  Our proprietary algorithm weights and combines the various data points to produce a single score value for the sub-category. 

Here are the markets in our database as of today with the highest Multifamily Market Fundamentals Job Subscore rankings –

1.  San Antonio, TX  26
2.  Grand Junction, CO 26
3.  Austin, TX   25
4.  Des Moines, IA  25
5.  St George, UT  25

Database Average:  19.6
Database Median:  20 

Tomorrow we’ll take a look at the markets around the country with the lowest Multifamily Market Fundamentals Job Subscore rankings.

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