Housing market recovery lays foundation for job growth

Pin It

Housing marketAt the start of the economic downturn, one of the factors that brought our country into a recession was the burst of the housing bubble. Now, as the housing market slowly recovers, it’s helping to spur economic growth.

A new study by CareerBuilder and Economic Modeling Specialists Intl.* found that certain segments within the housing sector are rebounding and in turn are creating jobs.

“Several industry segments closely tied to the housing sector have experienced encouraging job growth over the last 12 to 18 months as home prices and sales inch up and the economy improves,” says Matt Ferguson, CEO of CareerBuilder. “While some segments may still be trailing pre-recession employment levels and may not fully recover jobs lost, we’re seeing signs of a rebound in everything from construction and mortgage banking to home furnishing stores.”

Housing segments experiencing growth
The construction industry is actively hiring again after facing job losses during the recession. Since 2011, the U.S. has added more than 187,000 construction jobs, an increase of 2 percent, and 7,794,077 people are currently employed in this segment.

Other housing-related industries outside of construction are building up their staff again. More than 59,000 additional housing supply chain** jobs have been added since 2011, an increase of 3 percent. There are 1,755,863 people currently employed in this segment.

Some specific segments within the housing supply chain that have seen job growth from 2011 to 2013 include:

Mortgage and nonmortgage loan brokers

  • Added 19,317 jobs since 2011, 30 percent growth
  • 84,759 people currently employed

Home centers and other home furnishing stores

  • Added 23,849 jobs since 2011, 3 percent growth
  • 823,496 people currently employed

Building materials dealers

  • Added 11,305 jobs since 2011, 4 percent growth
  • 317,987 people currently employed

Hardware, paint and wallpaper stores

  • Added 4,062 jobs since 2011, 2 percent growth
  • 184,017 people currently employed

Upholstered household furniture manufacturing

  • Added 1,828 jobs since 2011, 4 percent growth
  • 53,838 people currently employed

Hot areas for the housing market
Certain cities are experiencing notable increases in home values and housing marketing activity***, including some of the areas hit hard by the housing crisis. These metropolitan statistical areas include:

Los Angeles

  • Added 191,343 total jobs since 2011, 3 percent growth
  • Added 22,318 construction jobs, 8 percent growth
  • Added 3,138 other housing supply chain jobs, 5 percent growth

Denver

  • Added 69,622 total jobs since 2011, 5 percent growth
  • Added 6,243 construction jobs, 8 percent growth
  • Added 904 other housing supply chain jobs, 6 percent growth

San Francisco

  • Added 118,617 total jobs since 2011, 5 percent growth
  • Added 13,963 construction jobs, 13 percent growth
  • Added 465 other housing supply chain jobs, 2 percent growth

Phoenix

  • Added 75,281 total jobs since 2011, 4 percent growth
  • Added 11,414 construction jobs, 11 percent growth
  • Added 1,097 other housing supply chain jobs, 5 percent growth

Las Vegas

  • Added 33,370 total jobs since 2011, 4 percent growth
  • Added 2,524 construction jobs, 6 percent growth
  • Added 255 other housing supply chain jobs, 4 percent growth

While the economy works to recover, it’s this kind of progress in the housing market industry that will continue to help fuel its growth.

*EMSI data is collected from more than 90 federal and state sources, such as the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and state labor departments. EMSI removes suppressions often found in publicly available data and includes proprietors, creating a complete picture of the workforce.

**For the purpose of this study, EMSI included the following in the definition of housing supply chain jobs: home centers and other home furnishing stores; building materials dealers; hardware, paint, and wallpaper stores; mortgage and nonmortgage loan brokers; and miscellaneous home and household furniture manufacturing.

***Hot housing markets based on 24/7 Wall St.’s review of Zillow data, April 2013. Employment data supplied by EMSI.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>