The job market drives demand for housing, but the type of jobs created or lost affects the type of housing. High-income sectors—information, business services, and financial activities—are shrinking in most major metropolises. Workers in these industries drive demand for housing for sale more than demand for rental. Nationally, employment in the high income sector remained flat year-on-year in August, well below its long-term compound annual growth of +1.6%.
The education and healthcare sectors added large numbers of new jobs in most metros and are growing faster than usual in almost every market. Many of these jobs pay low wages on average and often generate more rental demand than home buying activity. Nationally, education and healthcare employment increased by +3.3% year-on-year in August, significantly higher than its long-term compounded annual growth of +2.1%.
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