However, forecasts have certain limitations. For example, forecasts are often based on recent trends that may or may not continue as conditions change. Nevertheless, forecasts remain one of the most important planning tools. It follows the analytic approach used in developing estimates of national growth. The method is executed on a high-speed computer using matrix algebra operations which makes it very technical and complex.
Estimates are available from a number of sources, as discussed below.
Communities may also need to hire an experienced analyst to develop estimates. Communities should keep track of their own population and housing estimates on an annual basis. This information should be incorporated into the planning process. Many of the regional planning commissions also prepare population forecasts. Check with your regional planning commission to see what information it might have on population and economic forecasts for your community.