- Employment growth in the housing, real estate and construction sectors is a sign the single-family market has begun to pick up.
- Millennials are the reason for a large portion of the job growth, and they will drive the single-family market moving forward.
- Employment growth in the West will equate to more inventory.
In September, housing-related employment grew at a stronger pace — 3.56 percent — than other job types.
According to Trulia, most of this growth was driven by the construction sector, which as a whole saw a 3.55 percent rise in employment. Real estate and rental-leasing jobs also grew by 2.2 percent.
Employment growth in these fields means prospective homebuyers should get some relief from the tight inventory and fierce competition that has persisted in high-demand markets– namely, the West.
These employment figures emerge as the the Bureau of Labor Statistics released its latest employment report. The data found that total employment increased by 142,000 jobs in September. The average number of jobs created per month in the U.S. during 2015 is at 198,000.
According to Selma Hepp, chief economist at Trulia, these numbers mean the health of various housing markets is dependent on local economic conditions. Metros with the lowest rates of unemployment are also the ones with the strongest demand for housing.
This year, millennials are accounting for the fastest rate of job growth — just under 3 percent. Hepp said this group will continue to bolster both the rental and for-sale housing markets for an extended period of time.
When considering a home purchase, a recent Trulia report found that millennials are most concerned about obtaining a mortgage and finding a home that appeals to them. Possible home price increases and rising mortgage rates are the third and fourth biggest concerns, respectively.