Supply Indicators

Rental Inventory

Are you competing with a lot of other rental listings nearby? That is what this indicator describes. We look at "months of inventory" of rental listings in the area. That means, how many months would it take to rent out all of the listings in the area, if you assume the average demand level of the last 12 months. If this number is high, it means there is a lot of competition in an area. That means longer days on market and less pricing power.
Why it's important: If you are looking to buy in an area that's saturated with rental inventory, you may be fine, but be prepared to cut rents to be able to get a tenant in place more quickly.

New Homes

If a lot of new homes are being built in an area, this affects your resale value. If you were to sell in less than a few years, it might not be that easy, because buyers will prefer to buy new than to buy your pre-owned property. Your appreciation potential may also be held back. We look at how many new homes are being built within a 10 minute drive of the location. 10 is "most" and 1 is "least" and so a lower score is usually better.

Buildable Land

Buildable land tells you what the future may look like with new homes in the area. If there's a lot of land to build on, this tends to hold down appreciation potential until all of the land has been built out. Meanwhile, an area that's close in and without empty land to build on, you the area is supply-constrained and has more appreciation potential.
Last modified 6mo ago