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?
Not at all. Not even as a back-of-the-napkin, ballpark estimator. Its track record is surprisingly bad.
Read more...Why Apartment Investors Should Write off the Popular Jobs-per-Demand Metric | Property Management Insider
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