This article is presented by Walker & Dunlop.
Before buying any property, the investors should ask themselves: Is this a good market? Understanding the local fundamentals is critical if you want to avoid overpaying or investing in a declining area.
In order to be successful, you need to know the economic health, tenant profile, rent trajectory, and market potential of an area before you ever run the numbers on a deal—whether you are buying a 5-unit property in Texas or a 100-unit apartment complex in Georgia.
Tools like WDSuite from Walker & Dunlop make that process easier. This free platform lets investors analyze institutional-level data with just a few clicks. Instead of researching multiple sources, WDSuite brings employment trends, tenant credit scores, and population shifts into one dashboard.
Here are five market analysis metrics every investor should be using, and how to find them in WDSuite.
1. Macroeconomic Indicators
Macroeconomic indicators include employment statistics like job growth, unemployment rates, and labor force participation. These reveal the broader economic health of a market.
Why it matters
Employment is directly tied to rental demand and tenant stability. If job opportunities are growing, people move in. If unemployment is rising, vacancies and missed rent payments may follow.
What indicates a strong market versus a weak one
- Strong market: Low and declining unemployment, steady job growth, expanding labor force
- Weak market: High unemployment, job losses, shrinking labor force
How to use WDSuite
Search for a property and the macroeconomic benchmarks are displayed directly in the property overview. You’ll find local job growth compared to the national median, labor force trends, and unemployment rates at the county level. This helps you assess whether demand for housing is likely to rise or fall.
2. Radius-Based Demographic Insights
This includes age distribution, household sizes, population growth, and income levels within one, three, or five miles around a specific property.
Why it matters
Demographics determine the type of housing in demand. For example, younger populations may favor apartments, while older demographics might prefer single-level homes. Income levels influence rent ceilings, while household size affects bedroom count needs.
What indicates a strong market versus a weak one
- Strong market: Growing population, rising or stable income levels, high renter population
- Weak market: Declining population, stagnant or falling incomes, aging or shrinking renter base
How to use WDSuite
Search for a property and navigate to the demographic analysis in the neighborhood tab. It will break down population changes, age brackets, household income levels, and size trends, all compared to the metro average. This is essential for aligning your investment strategy with local renter needs.
3. Tenant Credit Quality
This metric shows median credit scores and loan payment delinquency rates for renters, helping you assess the overall financial stability of residents of a property in comparison to renters in the area.
Why it matters
Credit scores are an estimate of the likelihood for a consumer to default on a loan payment in the coming 30 days. If local tenants struggle with low credit scores or missed credit card payments, there is a risk that they won’t be able to make consistent rent payments. On the flip side, knowing renters have strong credit scores and low delinquency rates can support stable rent collections and low vacancy rates.
What indicates a strong market versus a weak one
- Strong market: Average credit scores above 650, consumer delinquency rates below the metro average
- Weak market: Credit scores below 600, consumer delinquency rates exceed the metro average
How to use WDSuite
Search for a property and navigate to the multifamily tenants tab. You’ll find renter credit scores aggregated at the property level and consumer loan payment delinquency rates all as recently as last month. This can help you minimize default risk.
4. Market Rent Trends and Forecasts
This measures historical and current rent levels in your target area.
Why it matters
Rent growth shows demand and pricing power. This directly affects your cash flow and projections.
What indicates a strong market versus a weak one
- Strong market: Steady or increasing rent growth and forecasts
- Weak market: Flat or declining rents
How to use WDSuite
Search for a property and navigate to the demographic analysis in the neighborhood tab. The rent trend and forecast for the 1, 3, and 5 mile radius can be found in the housing section.
Why Easy Access to Market Data Matters
Successful real estate investing is about managing risk, which starts with having the right information. In the past, accessing this level of market insight meant hiring a research analyst or buying expensive reports.
WDSuite removes that barrier. With just a few clicks, investors can assess market strength, tenant quality, rent potential, and resale comparables. WDSuite is free to use, so there is no reason not to use it.
Instead of flying blind, you can make data-informed decisions that protect your capital and guide your long-term strategy.
WDSuite is one of the best tools you can have in your analysis toolkit, whether you’re buying your first multifamily property or adding to a growing portfolio.
