Western and Southern States Lead Job Growth So Far This Year

According to the U.S. Bureau of Labor Statistics (BLS), employment numbers are rising in just about every area of the country. However, the Midwest and Northeast showed far less job growth than the West and South over the period between July 1, 2016 and July 1, 2017. Job numbers are frequently reported and re-reported multiple times, which is why these numbers seem a bit outdated. The BLS will adjust its numbers upward and downward at least once during the benchmarking process, which is why these numbers are just now being released. Many analysts argue the numbers become “increasingly accurate” as they are adjusted, while others take the opposite viewpoint.

Regardless of your opinions on federal employment tracking and analysis, these numbers are strong indicators of trends in employment, which serve as valuable indicators for real estate investors. For example, knowing Idaho and Nevada had the nation’s fastest-growing populations during that 12-month period and also posted extremely strong employment growth (3.3 percent and 2.9 percent, respectively), can indicate to a real estate investor that housing markets gaining strength around the sources of these new jobs could represent an opportunity.

Investor Insight: Employment trends are a primary indicator for housing market growth and stability.

The National Association of Home Builders (NAHB) suggested investors also look at new-home construction levels in areas with strong employment numbers. More affordable markets in these regions are sustaining higher levels of single-family construction and, as a result, are enjoying faster home sales, NAHB analysts noted. For investors worried about the ongoing construction labor shortage, states like Texas, Nevada, Idaho, and Florida offer the best population of skilled contractors, the NAHB added.