Skewed Metrics

The Wall Street Journal published an article this week in collaboration with realtor.com where they ranked 300 communities across the United States based on a set of criteria. The purpose of the ranking is somehow tied to their prediction of those communities offering the best rate of return on investment using a set of criteria that they applied to their methodology. The Wall Street Journal is widely read, and I have no doubt that this piece is going to be widely referenced by other reporter and perhaps your own investors as well. On today’s show we’re going to take a deep look at this report so that you are able to answer questions about the report.

To identify the top emerging housing markets, The Wall Street Journal and Realtor.com reviewed data for the 300 most populous core-based statistical areas, as measured by the U.S. Census Bureau.

The overall methodology explores two main areas: real-estate markets (50%) and economic health (50%). Those two areas comprise eight key indicators and the Wall Street Journal applied a weighting to each of the 8 indicators to come up with a metric and therefore a ranking.

We're looking at whether this ranking makes any sense. 

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Host: Victor Menasce

email: [email protected]