The 5 Best and Worst Markets in Job Growth

Job growth is looking positive, and some significant milestones have recently been achieved. The Labor Department reported that the unemployment rate fell to 3.8% in February, the lowest we’ve seen since the pandemic began. In addition, US employers added in 678,000 jobs. Demand for employees has been high, and it appears the workforce is now rebounding and rising to the call. This is a critical factor for real estate investors, as the workforce is generally the tenant base for multifamily housing; with a strengthening workforce, landlords can now begin to collect on past rents, help bring tenants current, and return to stabilizing their properties.

Which markets are seeing the most progress, and which are still struggling?

The 5 States with the Highest Job Growth:

5. Atlanta, GA

Year Over Year Job Growth: 5.1%

Year Over Year Rent Growth: 19.7%

Percentage of Renters: 20.7%

4. Miami, FL

Year Over Year Job Growth: 5.2%

Year Over Year Rent Growth: 27%

Percentage of Renters: 28.69%

3. Phoenix, AZ

Year Over Year Job Growth: 6.2%

Year Over Year Rent Growth: 25.4%

Percentage of Renters: 21%

2. Orlando, FL

Year Over Year Job Growth: 6.7%

Year Over Year Rent Growth: 25.9%

Percentage of Renters: 25.27%

1. Austin, TX

Year Over Year Job Growth: 7.3%

Year Over Year Rent Growth: 22.2%

Percentage of Renters: 19.67%

The 5 States with the Lowest Job Growth:

5. Kansas City, KS

Year Over Year Job Growth: 4.4%

Year Over Year Rent Growth: 8.1%

Percentage of Renters: 16.66%

4. Philadelphia, PA

Year Over Year Job Growth: 4.2%

Year Over Year Rent Growth: 11.9%

Percentage of Renters: 18.71%

3. Washington DC

Year Over Year Job Growth: 4.2%

Year Over Year Rent Growth: 12.2%

Percentage of Renters: 19.40%

2. Twin Cites, MN

Year Over Year Job Growth: 3.9%

Year Over Year Rent Growth: 5.3%

Percentage of Renters: 16.40%

1. Indianapolis, IN

Year Over Year Job Growth: 2.7%

Year Over Year Rent Growth: 12.9%

Percentage of Renters: 17.89%

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About the Author

Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the host of REady2Scale , a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.

Sources:

Yardi Matrix

Department of Numbers