Employment Gains' Benefit to Housing Industry

The U.S. added 213,000 jobs in June, and unemployment hit 4 percent, according to a new report from the Bureau of Labor Statistics. Experts are weighing in on how this may benefit the housing industry.

Realtor.com chief economist Danielle Hale says, “There are more than 15 percent fewer entry-level homes under $200,000 on the market this year than last year, while there are slightly more $350,000-plus homes," explaining that increased wages may help home shoppers match up with available housing stock. Yet, LendingTree chief economist Tendayi Kapfidze points out to HousingWire, wage growth has not caught up with employment. "The increase in the labor force participation rate may offer a clue as to why. The large pool of available people to enter the labor force is a drag on wages as it reduces the bargaining power of workers who are already employed.”

But the report offers some optimism for the construction industry, as construction employment increased by 13,000 jobs in June. It has now increased by 282,000 over the year. “This month’s increase by nearly 4,000 residential construction jobs compared to May, a 0.5 percent increase, sends a positive message to homebuyers and the housing market, as it indicates further increases in housing starts are likely and more housing supply may be on the way,” First American chief economist Mark Fleming said.

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