- Reli-AI is a location intellgance platform for real estate investors.
- The ZIP Code Result Page is the first step to understanding the DNA of your requested location.
- The page contains selected indicators that provide a preliminary analysis of the trends relevant to the ZIP code and its corresponding metropolis. Since a ZIP code is part of a larger metropolitan area, the trends recorded in the metropolis directly influence the same trends in the ZIP code. Therefore it is important to perform a spatial analysis as well, as part of the complete location analysis.
- To fully understand what the data represents in regards to trends over time, in addition to their current values, the trends of the region are examined over the past five years. This examination allows for a deeper understanding and allows us to draw the full picture of the area in a clearer way.
- The indicators are all correlated to each other, so they are represented together. This view allows the user to gain initial insights into the location as a whole.
Below you will find descriptions for each of the ZIP code indicators and their significance in assessing the value of a specific location
Total population: The total number of people who live in the area, measured by factoring in the net migration (the number of people who have moved to the area minus the number of people who have left), and the natural growth number (births minus deaths in the area).
Population growth trend: The rate of population growth in the area over a number of years. Above-average population growth indicates that the total population is growing faster in this ZIP code than in other counties or the national average. In the short run, this often leads to rising property value, including both purchasing and renting prices, as the demand for housing surpasses the supply.
Median household income: The 50th percentile of annual household income in the area, meaning that half the households earn more than this figure, and the other half earn less.
Median household income trend: The rate of median household income growth in the area over several years. Above-average household income growth indicates that households in this ZIP code will be able to afford higher rental prices in the future in comparison to the county or national level.
Median age: The 50th percentile of the age distribution in the area, meaning the age at which half the inhabitants are younger, and the other half are older.
Median age trend: The rate at which the median age changes in the area over several years. A relatively low median age can indicate that a larger share of the population are at the relevant age to purchase a home. This can raise demand, which can result in higher housing prices.
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.
Median home value trend: The rate of median home value growth in the area over several years. Above-average price growth indicates that demand is higher than supply, indicating strong economic foundations for the ZIP code.
Unemployment rate: The number of unemployed people in the area as a percentage of the labor force. This figure is adjusted to account for seasonal changes. The definition of unemployed people are those of working age, who are available for work but are without work, and have taken specific steps to find work. Decreasing unemployment is a positive insight. Comparably low unemployment rates indicate that more households have stable incomes, which could lead to a higher demand for housing, and an ability to afford higher rental and purchasing prices. This could increase the value of the homes in the area.
Spatial analysis
Population trends: The trends of the total number of people who live in the designated area over time. In this chapter there are three charts, from largest defined area to smallest specific section: population of the metropolitan area, population of the county, and population of the specific ZIP code.
Net migration: The number of people who have moved to the area minus the number of people who have left. Positive net migration, when more people have moved to an area than people who have left, is a positive insight that signals the attractiveness of the area.
GDP (Gross Domestic Product): The total value of all the goods and services produced in an area during a given period, in monetary terms, before deduction of depreciation. GDP is an important indicator in spatial location analysis. Using this indicator provides many location insights.
- GDP is a measure used by professional economists to establish the economic activity of a particular area. Increasing economic activity leads to higher demand for workers, contributes to increasing immigration to the area and increasing population, increasing wages, and increasing the value of assets.
- The initial insight is an examination of the growth rate of GDP compared to the growth of the nation as a whole.
- It is a positive insight when the GDP growth rate of the area is:
- Higher than the national GDP growth rate
- Higher than the population growth rate of the area during that time.
