Shelter Index
The Shelter Index is a measure and comparison of the overall health of various global housing markets. It is used as an indicator for predicting future performance in real estate investments. The index was first developed by Shelter, Inc., a research firm specializing in residential real estate analytics, based on data from local government sources, surveys, and other industry-standard measures.
The Shelter Index takes into account several factors when evaluating each country’s housing market including: population growth rate; affordability; rental costs; vacancy rates; supply & demand dynamics (including new construction); price appreciation/depreciation trends; median home prices; and mortgage delinquency rates. The goal is to provide investors with insight into which regions offer the best prospects for long-term returns on their investments in residential properties.
Investors use the Shelter Index to identify international opportunities that have potential for higher yields or lower risk than domestic markets while also taking currency fluctuations into consideration. This type of analysis can help them determine where they should deploy capital to maximize return on investment within their desired risk profile.
In addition to providing valuable insights about expected returns from different global markets, the shelter index also serves as an important tool for policymakers when making decisions about economic stability initiatives such as affordable housing programs or tax incentives related to home ownership or development projects