Monday Market Update: Real Estate & Labor (In Honor Of Labor Day!)
Labor Day 2021 is here; check out our data drop on jobs & housing!
Monday Market Update: Real Estate & Labor (In Honor Of Labor Day!)
It’s that time of year that traditionally marks the closure of summer … Labor Day! In honor of this day that pays tribute to the achievements and contributions of American workers, we wanted to provide a little data drop on housing, real estate, jobs and associated impacts. Here goes:
* Real estate demand increases as local jobs increase; this is seen especially during periods of economic development or ‘boom’.
* When jobs are added to the local labor force, the result is often higher rents and home prices.
* A decline in local jobs usually results in a decline in the need for all types of real estate (think: recession).
* Specific job issues that impact rent levels & home prices are: quantity of employed individuals; quality of jobs available; and types of jobs existing and developing in the local market.
* According to California’s Employment Development Department, construction job growth ranked in the top 3 accounting for 26.2% of all new jobs added in the last 10 years.
* Labor reductions have a ripple effect on all types of real estate: less employees equates to less need for office space, commercial & industrial space. Similarly, job increases result in a ripple effect to demand in all property types.
* Data in the last 3 years indicates that real estate construction contributes 6.2% of US gross domestic product.
* Commercial real estate creates jobs by providing spaces for retail, offices & manufacturing.
* The National Association of Realtors® estimates that one job is generated for every 2 home sales; thus 1,000 home sales generate 500 jobs.
* Each home sale generates an average of 60,000 to the GDP.
As you celebrate Labor Day, we hope you take some time to give yourself credit for all the hard work it took to get to where you are. Whether you are a homeowner, renter or investor – may your home be where your heart is and where your feet to get to rest after a long day!
Resources Used:
Real Estate's Impact on the US Economy
Jobs Impact of an Existing Home Purchase
Bobbi Decker
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