Why is a markets Mortgage Density number such an important measure?
It allows you to effectively compare the purchase lending opportunities across different sizes of markets. For instance, when comparing the total lending opportunities in the Atlanta metro market against the total opportunities in the Nashville MSA market, Atlanta is obviously a much larger opportunity in pure number of loans. However, comparing the same two markets based on each market’s purchase mortgage density (per every 10,000 households) leads to a different conclusion. When zooming down to individual communities and neighborhoods, the density comparisons become even more important to setting market development and investment priorities.
