Recent Price Rise Not Due To Employment Rate
Yes, some markets with strong price gains also have rising employment rates. But a recent report from the “Trulia Price Monitor” shows that of the Top Ten strongest markets, employment rates have varied.
That said, rising rents and rising employment rates have been aligned, according to the Trulia report.
Las Vegas, Nevada and Sacramento, California posted the highest price gains in 2013 with a 33% and 28.2% gain, respectively. Both markets also showed strong employment growth at 2.4 percent and 1.5 percent.
However, Riverside-San Bernardino, California and Oakland, California, the next two on the list, posted significant price gains, but less than 1% employment gain. All of the markets in the Top Ten were hard-hit markets during the recession, while the markets with the smallest price increases were hit relatively mildly during the housing crisis.
“Looking at the quarter-over-quarter price changes throughout 2013, the relationship between the severity of the housing bust and the recent price recovery was stronger earlier in the year than later in the year,” Trulia says.
Our very own San Francisco, California topped the list of rising rents with a 10.6 percent annual rise in rents and a 2.4% increase in employment. Following close behind was Portland, Oregon with a 10.5% increase in rising rents and 2% job growth.