Real-estate experts discussing market trends at the National Association of Real Estate Editors conference in Austin this week seldom did so without also contemplating the role of employment statistics.
The recent wave of foreclosures, for example, is largely driven by the loss of jobs and income, said Rick Sharga, senior vice president of RealtyTrac, an online marketplace for foreclosure properties.
And when it comes to the need for new-home construction and overall housing demand, expectations for the future largely depend on the employment picture in the local area, said Mike Inselmann, president of Metrostudy, a provider of housing information.
In many metropolitan areas, it takes the creation of two jobs to create one new household, he said. That is, "100,000 jobs create 50,000 households in most markets," he said.
Eventually, growth in household formation will affect apartment demand, said Henry Cisneros, former secretary of the U.S. Department of Housing and Urban Development. Rentals are often entry-level housing for new workers forming households, and since a limited supply of apartments has been added to the market recently, there could be a need for that type of development as the economy mends, he said.
Read more real-estate news in this week's pages, including tips on how to get your home purchase closed before the tax-credit deadline and a Realty Q&A on short sales.
While you're at it, read about the latest jobs report on MarketWatch, and learn why the numbers might not be as positive as they look at first blush.
Housing and employment trends often are linked, and for good reason: Not having a job will keep people from buying a home or renting an apartment. Even the worry that a job might be lost can keep a household from forming.
And as the country has painfully witnessed, the ability to keep a job often determines whether someone is able to keep a home.
Source -Marketwatch -- Amy Hoak, Real Estate writer
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