INVESTORS’ CORNER: America Migrates South: Why the Greater Charlotte Area Will Continue to Grow at a Phenomenal Pace part 2 of 2

This article is continued from my previously published “Part 1” and draws heavily on the concepts and analysis of the eye-opening book Big Shifts Ahead: Demographic Clarity for Business by John Burns & Chris Porter.

You may have been encouraged by trends in Part 1 that showed massive demographic movement towards southern states. As a real estate investor in one of these states, it certainly validates your overall investing location. I invest in Clemson, South Carolina, and I like what I’m seeing.

But remember that the overall regional trends are just a good start. You can increase your overall odds of success by staying ahead of other local trends as well.

The Urban Revolution

For example, the authors also found a large movement of renters and buyers towards what they called urban areas all over the country.

These urban locations are towns and neighborhoods in the suburbs that have the feel of urban areas. They have features like walkable neighborhoods, bike paths, trendy restaurants, and smaller housing footprints. And both younger and retiree generations are renting and buying there because the housing is more affordable while still maintaining the vitality and convenience of urban areas.

But wherever you invest, the bottom line is to always remain nimble and pay attention to what’s working in your smaller niche. Pay attention to big picture trends, but then find micro-level supply-demand imbalances that you can take advantage of. That’s the essence of successful real estate investing.

As a small, nimble investor in the southern states or any hot area, you can often pick off smaller opportunities that the big fish (national builders and investment companies) overlook. Just focus on buying properties with good numbers in quality suburban or urban locations.  And continually build your fundamentals for finding good deals. The results will take care of themselves.

Conclusion

This excellent book has certainly influenced my thinking. I feel better that investing in a southern state in suburban locations for the long-term has good fundamentals. I already personally liked urban style locations (it must be the almost-1980s generation in me!). But I now place equal value on them as an investor.

And I only scratched the surface of the overall trends in the book. Other major trends include an influx of affluent immigrants, ever-increasing economic influence of women, and a massive number of retirees. So, check out the book to learn more about the changes underway.

Chad Carson is a member of Metrolina REIA (metrolinareia.org), which provides education, networking, and networking for real estate investing in the Charlotte region.  Chad also writes about real estate, money, and life at coachcarson.com.