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Jobs and Housing - Chicken and Egg?



July 10, 2011 – Comments (2)

I've heard the debate before over housing and jobs and which one will spark the other. So I ask myself two questions: First, can jobs get better without an improvement in housing? Second, can housing get better without an improvement in jobs?

So jobs don't just centralize around housing. Granted many housing related jobs have been lost, but I would think that we could still see some improvement in employment even while house prices stay depressed. One the other side of the coin, I don't see the same dynamic with housing. In other words, you need a job to buy a house (even then it's not a given). If unemployment stays high, housing doesn't have a chance.

So I think that we'll need to see or will see improvement in employment which will help lead to improvement in housing over time.

I've heard it argued both ways. Any thoughts out there on the subject?



2 Comments – Post Your Own

#1) On July 11, 2011 at 11:48 AM, TDRH (97.30) wrote:

Not just "jobs", but jobs that provide an income level to allow the individual to reach the level of qualified demand, ie higher income jobs.   Most recent college graduates do not want to live with their parents, but starting out managing a retail store, with debt service to student loans will not qualify the individual to buy a home at the current median home price.

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#2) On July 11, 2011 at 3:10 PM, leohaas (30.15) wrote:

No, it's housing. With so many foreclosures (and many more in the pipeline), the housing market will not recover. And there will be very limited interest in building new homes.

I wish it were different. I followed floridabuilder with a thumbs-up on many builders. The result is that I dropped from position 200 to about 5000 here on CAPS.

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