Median Income vs. Median Rent Heat Maps – business site location analysis tools
We hear a lot about the real estate market these days and how fluctuating costs are impacting local economies. If your business relies on minimum wage employees, for example, it will be more difficult to maintain a workforce if located in an area with high rents. Likewise, your business needs to be accessible to consumers who can afford your products or services. Furthermore, locating your business in a debt-strapped area could suppress earnings potential.
Kwelia, a company that provides competitive intelligence for the real estate market has created an interactive online heat mapping service at the census tract level. The heat maps allow you to quickly visualize median income, median rent per sq/ft., and most importantly, the combined effect of median rent as a percentage of median income. The maps are available for nearly every metro market in the U.S.
Showcased below is the median income / median rent for the southern portion of the Silicon Valley. The highlighted track (pointing cursor) includes Apple’s headquarters in Cupertino, CA. The median rental share of income in this region is a comfortable 16.6%. San Joaquin Valley to the east, on the other hand, at 46.2%, leaves residents with much less disposable income.
Median Rental Share of Income
We’ve zoomed in on this same area and applied our GeoMetrx 2013 household income by census tract with an overlay of the top computer and electronic product manufacturers (annual sales over $1 million). You can see there is certainly a lot of competition for well-qualified employees which draws talent to the area and keeps salary levels (e.g. income levels) competitive as well. There is a symbiotic relationship between business activity and the real estate market. However, as the balance shifts between these two forces, the impact can be enormous as we saw in 2008, and the years following as the real estate market has struggled to regain its footing amid the long-running economic downturn.
For a complete retail site selection analysis, consumer profiling and/or market analysis, our GeoMetrx web-based mapping software is loaded with rich demographic data, competitive business data and much more. If you are planning to start a new business, open additional offices or retail locations, or expand your franchise offerings, GeoMetrx can help maximize your decision making portfolio. Call us at 1.888.848.4436 for more information or request a custom demo today.