Morgan Stanley says REO rental program could create nearly 2 million jobs

New research from Morgan Stanley suggests the federal government’s program to turn foreclosed properties into rental opportunities could have a significant positive impact on job creation. This boost could apply to one-time construction and remodeling jobs as well as permanent positions, according to a story on HousingWire.

In the short term, Morgan Stanley projects the program will create approximately 1 million construction and real estate jobs. As conversions are completed, another 800,000 or so permanent jobs could appear. These would mostly take the form of services related to rental units, including property cleaning and rent collection.

Should these predictions come true, it would create more positive momentum for an industry that has been trending upward. The Bureau of Labor Statistics reports that construction employment rose by more than 50,000 in December 2011 and January 2012. This has helped make a dent in the 2.16 million jobs that have been lost in the industry over the last five years.

On the housing side, Morgan Stanley analysts expect some 8 million foreclosed properties will be sold over the next five years.

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