Definition: A study of the activities supporting a local economy, including industries bringing in outside income and services responding to local needs.
Example
An analyst reviews major employers, export industries, and employment trends when estimating future property demand.
Keep the distinction clear
Employment growth can inform demand but does not alone establish a property's value. Supply, household formation, affordability, and location also matter.
Related terms
Base Industry · Supply · Investment Value
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): ek-uh-NAH-mik BAYS uh-NAL-uh-sis (capitals show stress)
Pronunciation reference: Merriam-Webster
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