Markets: Look beyond “following the tech talent”
From 2013-2018, following tech talent migration was a relatively safe indicator of market rent growth. A new study from 7Park outlines how that has shifted in the past year. Instead, following growth in six-figure earners and robust, diverse economies, is a better indicator of rent appreciation.
7Park found the growth in six-figure earners is the criteria most correlated with multifamily rent growth in US cities, more than % college graduates or tech worker count.
They then looked at which industries have the fastest growing proportion of six-figure earners. Healthcare and Professional Services have surpassed Tech in the past year, as more tech jobs take on the form of lower-earning customer success and sales roles.
Using this information, they identified 10 cities as likely outperformers:
