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The baby boomer population has been the first to lead the charge to most of the growing states. Some of the reasons for growing population growth include no state income tax, politics, and quality of life. 

The next key to evaluate is Job Growth. If the population is growing, then jobs should be growing as well. As the population grows it puts a demand on the market for more employment. New businesses open and need staff, existing business-like restaurants, and small contractors need to increase staff.  Then there are the big players that come into the markets like Amazon, Google, and new technology companies which increase employment growth. 

This job growth will put a demand on salaries for these employees. The average household income (HHI) in the market, as well as the sub-markets, will increase. It is necessary to look at HHI from the view of a landlord. If I am looking to increase rents in a market does the average HHI substantiate the increase? Here is the formula. If I rent an apartment to a new prospect their income needs to be three times the amount of rent. 

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