4. DON’T IGNORE POLITICS Staying abreast of local and national economic policies is critical when deciding which city to invest in. Tax incentives, trade agreements, and regulation changes can seriously affect emerging cities. In addition, those in fields from energy to medicine may “vote with their feet,” moving to or avoiding certain areas due to laws, governance, or other factors.
meet demand. Employers hire more employees, which means they may need larger facilities and employee housing. All this confidence translates into a market that feels good about its future and is moving forward, so it may be a good time to invest. 8. COUNT EARLY ADOPTERS Early adopters jump on the technology bandwagon and are eager to try new things as soon as they come out. They can also predict where new industries will spring up or indicate an emerging city’s desire for innovation-driven expansion. 9. THINK GLOBALLY You might think that international markets have nothing to do with small emerging cities, but think again. Commodity prices, tariffs on goods, foreign exchange rates, and restrictions on trade can have an impact on local economies, especially if those economies are tied to manufacturing. 10. ANALYZE SOCIAL, SEARCH Social media and Google searches may not be considered traditional macroeconomic factors, but experienced investors know how to use analytics to determine what people are looking for and where. A big jump in location- specific searches—whether for real estate rentals or purchases—may mean the market may be about to explode. 11. CONSULT REPORTS Reputable institutions and think tanks take the guesswork out of predicting market trends in emerging cities, doing the work so you don’t have to. Organizations like the Urban Land Institute and the McKinsey Global Institute analyze
growth patterns to create economic forecasts that can help investors.
12. PINPOINT KEY INDUSTRIES What industries are critical when it comes to growth? In recent years, it’s been technology, renewable energy,
and healthcare. When a boom in these industries occurs in a city, prepare for expansion across real estate, retail, and service sectors.
5. LOOK AT WHERE DATA INTERSECTS
13. FOLLOW THE MONEY Where are venture capital, private equity, and government funds flowing? Significant public and private investments in a place can signal confidence in that area’s potential and may indicate future growth. Predicting market trends doesn’t require a crystal ball or even any particular instinct. These 13 tips can help any investor better understand indicators of potential expansion in emerging cities.
Savvy investors don’t want to be the last person to know when real estate prices are bloated, and inventory is scarce. Monitoring real estate data means tracking changes in property values and consumer spending to predict which cities have an influx of cash and a surplus of real estate. 6. BECOME A LOCAL PRESENCE Local communities appreciate new investors who engage with the community. This means attending community meetings, joining local business associations, and networking with businesses in the area. These relationships can provide valuable insights into the emerging market—not to mention a heads-up about potential challenges. 7. WATCH SPENDING Consumer preferences and spending habits can be a leading economic indicator. The Consumer Confidence Index (CCI) tracks how consumers feel about their personal finances. A high confidence level means consumers are spending more, which means companies can ramp up production to
LUKE BABICH
Luke Babich is the co-founder of Clever Real Estate, a real estate education platform committed to helping homebuyers, sellers, and investors make smarter financial decisions. Babich is a licensed real estate agent in the state of Missouri. His research and insights have been featured on BiggerPockets, Inman, the Los Angeles Times, and other online and media outlets. Babich earned a bachelor’s degree in political science, with honors, from Stanford University.
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