How many jobs does it take to create one unit of apartment demand? It’s a common question many investors want answered before pursuing a deal. The jobs-to-demand ratio has become a staple of nearly every apartment investment package, a standard metric alongside cap rate and rent growth. But can the jobs-to-demand ratio, viewed alone, do what it’s intended to do – predict future apartment absorption?
Source: www.propertymanagementinsider.com
How many jobs does it take to create one unit of apartment demand? What has long been seen as a fairly standard question with a widely accepted ratio, may not be able to accurately predict future apartment absorption, and it probably never has…