More New Home Construction Needed to Match Job Creation
The labor market, which is important to the country’s overall economic health, has recovered all of the 8 million jobs lost since the recession. Historically, one new home is built for every one-and-a-half new jobs. To find out if new home construction is keeping up with local job creation, the National Association of REALTORS® recently analyzed job creation in every state and the District of Columbia over a three-year period relative to new single-family housing starts over the same period.
NAR’s findings revealed that new home construction is currently underperforming in 32 states and the District of Columbia, and some states could face persistent housing shortages and affordability issues unless housing starts increase to match up with local job creation. In particular, the disparity between job growth and construction was the greatest in Florida, Utah, California, Montana and Indiana, where job creation has been particularly strong. On the contrary, housing starts are seen as more than adequate to local job growth in Mississippi, Arkansas, Connecticut, Alabama and Vermont.
Review NAR’s analysis to find the ratio of job creation versus housing starts in your state. Speak with a REALTOR® about local housing supply and affordability and the impact on potential buyers and sellers. Talk to recent buyers of newly-constructed homes and ask them the reasons why they bought one.