May 24, 2018

How Real Estate May Save an Ailing Job Market

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How Real Estate May Save an Ailing Job Market

The overall economic recovery is betting big on real estate’s continued progress. After all, a stronger real estate market can lead to a stronger job market. 

Strength in the real estate sector tends to lead to increased hiring in various housing-related industries, from carpenters and landscapers to real estate agents, loan processors, appliance manufacturers, furniture makers, and more. 

When it comes to job creation, "the most promising news is related to the housing market," says John Challenger, CEO of employment consulting firm Challenger, Gray & Christmas. 

The construction sector for housing added 28,000 jobs in January alone. 

"Since reaching a low in January 2011, construction employment has grown by 296,000, with one-third of the gain occurring in the last four months," according to the Bureau of Labor Statistics.

The National Association of Home Builders says that for every home start, three new jobs are added in industries such as lumber, concrete, lighting fixtures, and lending. 

If the housing market rebounds to its historical average, the economy could generate 2.9 million direct jobs from it, according to the Bipartisan Policy Center, a Washington think tank. 

Source: “Jobs Still Lag, But Homebuilding May Soon Help,” NPR (Feb. 1, 2013)

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