Job creation is the root of a strong housing market
Over the past two years, Portland, Ore., has had double the pace of new jobs compared to the U.S. average, meaning that 94,000 more people are employed. The City of Roses has also experienced home sales growth, at a compound annual rate of 12 percent.
Jonathan Smoke of Realtor.com named five major markets that have had the largest growth in jobs and home sales over the past two years. Along with Portland, Nashville, Charlotte, Boise, Idaho, and Raleigh, N.C., made the list.
“Job creation leads to household formation (people moving out to get their own place), and household formation defines the need for new construction and influences the pace at which existing homes turn over,” Smoke explains on the site. “When employment is strong and growing, consumers are more confident about their present and future. When consumers are more confident, they are more likely to buy a home (or sell an existing home and buy another one).”