Economic Base Analysis is important for predicting what aspects of property?

Economic Base Analysis plays a crucial role in predicting future income and property value changes because it examines the economic activities and industries that drive a community's wealth and sustainability. By understanding the economic foundation of a region, assessors can make informed predictions about how these factors will influence property demand and, subsequently, property values over time.

For example, if a community's economic base is growing due to an influx of new businesses or industries, it’s likely to attract more residents, which can lead to increased demand for housing and, consequently, rise in property values. Conversely, if a community's key industries are declining, that could signal a decrease in property values in the future. Therefore, Economic Base Analysis provides critical insights that can help assessors forecast changes in property values and income potential, allowing them to make more accurate assessments and decisions.