We aggregate data from different information sources, create a large API and make the information clearly accessible to real estate investors.</br> One of the ways to characterize the trends of an area is an analysis of the real estate trends and the economic ability of the residents of the area affordability.
Real estate price trends are influenced by various factors. Real estate prices are affected by demand, for example due to population growth, the supply of existing properties in the market, the mix of properties and more. Analysis of real estate indicators provides insights into a future real estate price trend, rising rental prices and property prices. Affordability is the outer side of the equation. Affordability is an indication of the We measured affordability in two main ways
One of the ways to characterize the relevant trends in a specific area is to perform an analysis of the real estate price trends and the economic abilities of the residents of the area, or their measurable affordability. Real estate price trends are influenced by a range of factors, such as changes in demand (for example due to population growth), the supply of existing properties in the market, types of properties, Building permits, Zoning and more. Analysis of real estate indicators provides insights into future real estate price trends, rising rental prices, and property purchase prices. Affordability is the other side of the equation, which is an indication of the buying power of the residents in the area, or their economic potential to afford real estate.
Affordability is measured here in two main ways
- For home buyers: We calculate the total number of salaries required to buy a house. An upward trend over the years in the number of salaries required indicates that living costs are becoming more expensive.
- For renters: We calculate rent as a percentage of household income. An upward trend in the rate of rental expenditure indicates that living costs are becoming more expensive.
Because cities and neighborhoods are part of a larger metropolitan system, they are directly influenced by the economic trends recorded in the metropolis. Therefore, it is important to perform a spatial analysis as well as a local analysis, as part of the complete location analysis.
Real estate indicators explained
Median home value
The 50th percentile of the price of a property, meaning that half of the homes are priced beneath this value, and half above it.
Home value distribution
In order to complete the full picture of real estate prices, one must also examine the changes in the price distribution over the years.
Median Gross Rent (dollars)
The 50th percentile of the median gross (or total) rent, meaning that half of the rent values are priced beneath this value, and half above it.
gross yield
Total housing units
The amount of housing units located in the designated area. / n The number of existing housing units and an analysis of their growth / decrease trend gives the real estate investor an indication of the supply that meets the demand.
Vacancy rate
The percentage of units in a rental property that are not occupied. A decrease in the vacancy rate is a positive insight that indicates an increase in demand along with the market’s inability to provide a suitable inventory of assets. A decline in the vacancy rate could indicate a continued upward trend in property and rental prices.
Affordability
Home buyers’ affordability
The total number of salaries required to buy a house. An upward trend in the number of salaries required indicates that living costs are becoming more expensive.
Renters’ affordability
The percentage of total household expenses used to pay rent. When this percentage is on the rise, it is an indication that the cost of living is rising. A constant increase in renting price over time can lead to negative migration, with people moving to areas where it is cheaper to live.
Data sources
Reli-AI uses only the latest statistics available and cross-referenced from several leading government sources. We aggregate the data from different information sources, create a large API, and make the information clearly accessible to real estate investors.
