Jobs are everything to the economy. Period. Job growth, however, is not uniform across the country. As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is job growth the same nationwide. But where job growth is strong, so is the demand for real estate.
The following table lists the top-20 Metropolitan Statistical Areas (MSAs) and Divisions (out of a total 436) with the largest percentage gain in jobs in the 12-months ending June 2018. These data are Seasonally Adjusted Annualized numbers provided by the U.S. Bureau of Labor Statistics. Consistent with the past year, there is a recurring theme in the towns making this list:
- Energy (oil and gas)
- Major college and university towns
- Technology centers
- Destination markets – leisure & hospitality
Everyone of the top-20 job growth rates was more than double the 1.62 percent level recorded by the U.S. for the same period.
As always, for all the winners there are losers. The worst performing MSA and Divisions in the past 12-months are shown in the next table.
Click here for a PDF of these data, sorted by state and MSA-Division.
The next table shows the 20-MSAs and Divisions with the largest total increase in net-new jobs in the 12-months ending June 2018. There is some overlap in this group. The Dallas-Ft Worth-Arlington is ranked number one in net-new job gains, while a subset of this market, the Dallas-Plano-Irving Metro Division, ranks fourth. Six of the 20 MSAs and Divisions with the largest gain in net-new jobs also posted a percentage gain of more the 3.0 percent – impressive for larger cities.
The last table shows the MSAs and Divisions with the most number of jobs lost in the past 12-months. A caveat here. Job losses do not necessarily signal a weak economy. The Naples-Immokalee-Marco Island MSA, while posting a loss of 3,000 jobs, has a minuscule 3.1 percent unemployment rate. The June 2018 single family home average price was $897,280 and was up 30.6 percent from a year ago according to the Florida Realtors®. The median home price of $455,000 was up 9.3 percent and the number home sales in June was up 2.2 percent year-over-year.
Jobs are everything. Some places are hot and others not.
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