In real estate, the path of growth is the trajectory of a particular property or market.<\/p>\n\n\n\n

This path is determined by the rate at which prices are increasing, and it can be used to identify potential investments.<\/p>\n\n\n\n

As you may have guessed, the appeal of a path of growth property is seeing a better return on your investment.<\/p>\n\n\n\n

Properties that are considered in the path of growth are generally situated just outside of a rapidly growing urban area. <\/p>\n\n\n\n

Cities tend to grow in a fairly predictable pattern. Initially, a city will spring up around a particular resource – a natural resource such as oil or gold, a particular industry like we see in San Francisco\u2019s Silicon Valley, or on critical trade routes, such as the Port of Los Angeles.<\/p>\n\n\n\n

People start migrating towards the city looking for work or investment opportunities and population numbers rapidly grow. Secondary industries quickly develop in response to the growing demand for consumer goods and services.<\/p>\n\n\n\n

As the city matures, the population numbers climb and competition for housing and services increases exponentially. As a result, people start moving further away from the city center to live in suburban neighborhoods in the surrounding areas.<\/p>\n\n\n\n

If the central business district continues to thrive, these suburbs will continue to grow, spreading into formally undeveloped tracts of land.<\/p>\n\n\n\n