NEW YORK (TheStreet) -- The real estate market in the U.S. could continue to improve in 2016 despite a languishing luxury home market.
Marcus & Millichap CEO Hessam Nadji believes the luxury home market is a weak indicator of the broader housing market and he sees more optimism from demand in the overall industry.
"There is definitely a correlation between job creation across the spectrum of all of real estate. When you look at where jobs are created, surprisingly, markets like Dallas still top the list," Nadji said on CNBC's "Power Lunch" Friday afternoon.
Citing Los Angeles, New York, Philadelphia and Boston as "pretty good job creators," Nadji noted that these markets may surprise consumers but have a lot of strength.
"The Inland Empire in Southern California ... [is] certainly an indicator of the broadening of the economy creating demand for commercial real estate as you indicated," Nadji stated.
Looking long-term, Nadji sees high demand but low supply in markets such as Denver and Portland, OR, where there is a "diverse economy and attraction to a lot of young adults." Yet the difficulty will be adding to that scarcity of housing, due to a shortage of construction workers in those markets.
"Look at the Bay area, for example, we've added 300,000 jobs within the last three years, and we've only added about 30,000 housing units so there's a chronic shortage ... that is definitely a natural barrier across the board because the fact that we can't add supply to keep up with economic growth," Nadji added.