Will my ______ (insert property type here) property value increase?

This is a common question and a question relevant to anyone who owns property.  Unfortunately, this is not an easy question to answer. 

There are so many variable and factors to focus on in any real estate market.  We could looks that the relationship between property values and interest rates, vacancy rates, inflation rates, rental rates, regional output, etc…  All of these factors are relevant.

If forced to narrow our answer to this question down to one factor, the key variable is most likely basic employment.  If local basic employment is strong in the future, this is good for local real estate markets and property values.  If prospects for local basic employment are weak or deteriorating, this is bad for local real estate markets and property values.

This is also why appraisers, market analysts, investors, developer, and lenders perform or commission market analyses before making decisions.  A primary focus of an appraisal or market analysis should be basic employment that leads to economic forecasts for that local economic basis.

Although many other factors come in to play for any specific location, the easiest answer to the tough question above is as follows. If basic employment in your local economy and growing, yes, your property value is likely to increase.  If basic employment in your local economy is declining, sorry, your property value is likely to decrease.