This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Housing Takeaways From Jobs Report

NEW YORK (TheStreet) -- Friday's strong jobs report had some good news for housing.

Trulia (TRLA) chief economist Jed Kolko said in a note that the latest data shows more young adults went back to work and that job growth in the hardest-hit metro areas was starting to pick up.

Kolko looked at three data points in the monthly report to see if a) housing was helping job growth and b) if job growth was helping housing.

Residential construction employment data showed that the housing recovery is helping job growth. Employment in the category, which includes residential specialty trade contractors, grew by 8,400 in November from the previous month. In the past three months, 20,300 jobs have been created in the category. Year over year, residential construction jobs rose 5%, which outpaces the growth in overall employment of 1.7%.

Of course, the recovery in construction jobs is long overdue. Kolko noted that residential construction jobs are still 37% below peak, while overall employment is 0.9% below peak.

Meanwhile, it appears that more job creation could further stimulate housing. Employment among 25-34 year olds, who typically represent the first-time homebuyer, rose to 75.2% from 75% in the previous month. That is still below the pre-bubble norm of 78-80%.

The high level of unemployment in this age group has led to a historically low rate of household formation, which is holding back the housing recovery.

There is some relief for cities hit hard by the housing crisis. Job growth in so-called "clobbered metros" rose 1.9% in October, ahead of 1.7% nationally, according to data released Thursday. In Tampa, Fla., employment rose 3.4% in October, while Orlando, Fla., and Fort Lauderdale, Fla., saw 2.8% and 2.6% increases, respectively.

-- Written by Shanthi Bharatwaj in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
TRLA $48.36 3.14%
AAPL $123.70 -1.70%
FB $77.53 -0.04%
GOOG $522.89 -1.50%
TSLA $229.43 -1.50%

Markets

DOW 17,790.60 -137.60 -0.77%
S&P 500 2,075.18 -14.28 -0.68%
NASDAQ 4,905.2190 -34.1080 -0.69%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs