Jun 02, 2014 | by Franck Cushner, CFP®
The Labor Department in its most recent data reported that payrolls, the actual number of individuals working and earning a paycheck, increased with broad results over the past year.
Of the 50 states, a handful are showing larger than average job growth, with year-over-year growth of 2-4%. Job growth varies from state to state depending on demographics, industries, weather, and regulations. Some states have rapidly growing industries, such as fracking and drilling in North Dakota, while Florida has become a cost effective state for companies to hire with ample qualified workers at favorable wages.
The economically sensitive housing market tends to be used as a barometer by economists as companies hire employees who seek housing at similar price levels to their wages.
It has been no surprise that as plant closings in Detroit have occurred, the housing market in the greater Detroit area has deteriorated. Conversely, newly created jobs in Tampa, Florida, have sustained the housing market there as additional employment income has developed in the region.
Fargo, North Dakota has for years had little if any housing growth, yet over the past few years as tens of thousands of fracking and drilling jobs have been created, housing is now limited with a critical shortage. Such housing demand has lifted housing and rental costs for the area well beyond historical average prices.
Sources: Dept of Labor, HUD
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