Top 10 Cities With Highest Job Growth

You probably heard that when it comes to real estate, location is one of the most important factors. What makes a market a solid one for real estate? The answer is complex, but job growth is one of the main factors that make a market a strong market (in addition, I also look at population growth and rent growth as well).

In the past decade, the U.S. economy has been steadily growing. One of the signs for solid growth has been stable employment. Over the past 5 years, the employment rate has increased by 7%.

Employment growth is related to population growth because people move to areas where they can find more employment opportunities. Hence, a market with a solid employment base will almost always attract people, whom many can be potential tenants.

Here’s a list of the top 10 markets with the highest job growth in the country:

City #10: Gainesville, GA

Jobs added in the past 5 years: +16,111

% of jobs added in the past 5 years: 19.4%

Employment rate: 97.2%

City #9: Fort Collins, CO

Jobs added in the past 5 years: +33,350

% of jobs added in the past 5 years: 19.6%

Employment rate: 98%

City #8: Phoenix-Mesa-Scottsdale, AZ

Jobs added in the past 5 years: +388,901 jobs

% of jobs added in the past 5 years: 19.7%

Employment rate: 96%

City #7: Boise City, ID

Jobs added in the past 5 years: +60,126 jobs

% of jobs added in the past 5 years: 19.9%

Employment rate: 97.7%

City #6: Lake Charles, LA

Jobs added in the past 5 years: +18,274 jobs

% of jobs added in the past 5 years: 20%

Employment rate: 96.7%

City #5: Provo-Orem, UT

Jobs added in the past 5 years: +51,042 jobs

% of jobs added in the past 5 years: 20.6%

Employment rate: 97.5%

City #4: Nashville-Davidson–Murfreesboro–Franklin, TN

Jobs added in the past 5 years: +193,594 jobs

% of jobs added in the past 5 years: 22.4%

Employment rate: 97.6%

City #3: Reno, NV

Jobs added in the past 5 years: +49,382 jobs

% of jobs added in the past 5 years: 23.9%

Employment rate: 97%

City #2: Bend-Redmond, OR

Jobs added in the past 5 years: +18,542 jobs

% of jobs added in the past 5 years: 24.9%

Employment rate: 96.7%

City #1: St. George, UT

Jobs added in the past 5 years: +15,163 jobs

% of jobs added in the past 5 years: 25.7%

Employment rate: 97.1%

Summary

While purchasing a local multifamily property has its advantages in that you already know the market, it pays to look at out of state properties for the reasons outlined above. States without rent control or laws that favor tenants are advantageous to landlords. And markets that have good population growth, job growth and rent growth are markets where you should be investing your money. After you choose a market, just make sure you outline your investment criteria, build a team and start analyzing your deals. It will be a journey, but a fun one.

Are you a real estate investor and interested in learning more about passively investing in multifamily properties? Click here for the “Ultimate guide for the Passive Investor.”

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About the Author

Ellie is the founder of Blue Lake Capital, a real estate company specializes is multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

Ellie is the host of Unbelievable Real Estate Stories, a podcast that shares true stories from within the industry, and the critical lessons learned, from the most successful real estate investors, innovators, developers, and more from around the globe!

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 at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.