U.S. Job Market Could Get a Lift from Low Housing Inventories
The lower inventory of homes for-sale could bode well for the job market, according to a recent article written by Robert Dietz, an economist with the National Association of Home Builders, in U.S. News & World Report.
“More jobs in the broader economy fuels more housing demand, and with more housing demand comes more jobs in the housing sector, especially in construction, an industry still languishing in the wake of the bust,” according to the article.
Every new home built keeps, on average, three people employed full-time for a year. Therefore, Dietz estimates that if single-family housing starts rise from 530,000 this year to 640,000 in 2013, housing could generate more than 300,000 jobs for the economy next year.
As builders get more confident about the housing market, they will ramp up construction. And rising home prices lately from low housing inventories is helping to increase their confidence.
The existing-home inventory has decreased 47 percent as of October 2012 from its peak in July 2007, according to National Association of REALTORS(R) data.