How to Analyze a City’s Housing Market in Under 20 Minutes
Most people think they need weeks of research, expensive software, or a stack of consultant reports to understand whether a city is worth investing in. The truth is, you can learn 80% of what you need to know in less than 20 minutes…if you know what to look for.
I’ve been investing for over thirty years and bought properties nationwide at that time. Before I spend money flying out to tour deals, I always run a quick “20-minute test.” If a city doesn’t pass, I move on. If it does, I dig deeper. This one habit has saved me from wasting time in weak markets and helped me zero in on the strongest opportunities.
Here’s how you can do the same:
Step 1: Check Population and Job Growth (5 minutes)
Start with the basics. A housing market is only as strong as the people and jobs moving into it.
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Search for the city’s recent population growth using Census Bureau data or local government websites.
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Look up job growth trends and unemployment rates. A city adding employers and attracting workers will almost always see stronger housing demand.
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Bonus: Check the local Chamber of Commerce or economic development board. They usually highlight new companies moving in.
If people and jobs are leaving, that’s your first red flag.
Step 2: Look at Supply vs. Demand (5 minutes)
Once you know people want to live there, the next question is: is there enough housing?
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Search vacancy rates on sites like CoStar, Yardi, or even local apartment association reports.
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Look at the construction pipeline, how many new units are planned or under construction.
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A healthy market usually has steady demand with controlled supply. But if builders are flooding the city with new apartments while population growth is flat, rents and occupancy will struggle.
This one metric alone has saved me from entering markets that “looked hot” but were oversupplied.
Step 3: Test Affordability and Rent Trends (5 minutes)
Next, see if people can actually afford to live there.
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Compare median rent to median income. A general rule of thumb is renters shouldn’t spend more than 30% of their income on housing. If a market is far above that, affordability problems are around the corner.
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Look at rent growth over the past year or two. Flat or negative growth isn’t always a deal-breaker, but you’ll want to understand why.
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Compare rents to nearby cities. Sometimes the best opportunities are in suburbs or smaller metros just outside the expensive urban core.
Step 4: Spot the Red Flags (5 minutes)
Finally, do a quick check for deal-breakers:
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Local regulations like rent control, strict zoning, or eviction moratoriums. These can crush your returns no matter how good the fundamentals look.
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Crime and school ratings. Both impact renter demand and long-term property values.
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Employer risk. If one company dominates the local economy, losing that employer could devastate the housing market.
These aren’t meant to scare you off, but to make sure you’re not blindsided.
Why This Works
By the time you finish this 20-minute process, you’ll know whether a city deserves more of your time, or if you should cross it off your list.
Remember: your goal isn’t to become an expert in every market. Your goal is to quickly separate strong opportunities from weak ones. That’s how professional investors scale.
If a city passes this test, that’s when you dig deeper, visit in person, meet brokers, study specific neighborhoods, and underwrite actual deals. But don’t waste hours chasing markets that don’t even have the fundamentals in place.
This is the exact process I’ve used to buy over 10,000 units across the U.S., and it works.
