Good news in the job market means eventual good news for the housing market.
Trulia’s Chief Economist Jed Kolko perused the February jobs report released by the Department of Labor recently, and found a couple of indicators that bode well for housing: unemployment rates amongst young people have gone down, and construction employment rates have gone up.
Looking at the rate of change, Kolko found that construction employment, which makes up 4.2 percent of total employment in the country, was up 2.5 percent versus three months ago, outpacing overall employment growth (2.2 percent). While still down from the height of the housing boom, the numbers are headed in the right direction.
Courtesy of Trulia Insights
While the U.S. added 227,000 jobs last month (though the overall unemployment rate stayed at 8.3 percent), Kolko zeroed in on the stats for young people (between the ages of 25 and 34). He found that the unemployment rate for this group dropped to 8.7 percent in February, down from 9 percent in the previous month. Now, 74.7 percent of 25- to 34-year olds are employed, up by almost one percent from a year ago.
As has been a frequently covered topic recently, many young people have been waiting out the recession from the comfort of their parents’ homes. Now that job prospects are looking a little brighter, we may see a new population of home buyers and renters.
While the jobs report didn’t zoom in on DC, a report from the Center for Regional Analysis estimated that 1 million new jobs will come to the area in the next 20 years, overwhelming the current housing stock. Our high construction activity may stay that way for a while.
This article originally published at https://dc.urbanturf.com/articles/blog/strong_jobs_report_bodes_well_for_housing/5271.
Most Popular... This Week • Last 30 Days • Ever
The development will be located a few blocks south of the Takoma Metro station.... read »
The new development along South Capitol Street includes a new amenity for UrbanTurf: ... read »
DC's Office of Planning recently looked at DC's migration patterns in 2022. Today, Ur... read »
A new plan is on the boards for a group of five townhouses in the middle of DC's Chin... read »
Crescent Communities has filed a site plan application with the county for a 467-unit... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
Why condo fees are high in some buildings and low in others can be a difficult questi... read »
Dupont Circle’s Swann House, a former 15-bedroom bed and breakfast, will be listed ... read »
The two-building project will include approximately 825 residential units, 151 lodgin... read »
There are two new proposals to redevelop the center at 14th and U Streets NW that are... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro