Job, rent growth: a matched pairJob, rent growth: a matched pairhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=24512014-11-17T14:16:00Z2014-11-17T00:00:00Z

TEXAS - Nationally, monthly employment growth has exceeded 200,000 jobs for the past nine months.

Locally, the progress has been more variable, and one indicator of this is the correlation between job growth and rent growth, which dovetail 83 percent of the time, according to Dallas-based Axiometrics.

When these two statistics don't jibe, a market experiences “high job growth and low effective rent growth or vice versa, according to Axiometrics, which examined the top 54 apartment markets to see how each fared.

Unsurprisingly, the Texas trinity of strong job growth markets — Dallas, Houston and Austin — were part of the group that had growth in both indicators.

These cities had high 3Q job growth (3.8 percent in Dallas, 4.0 percent in Houston and 3.8 percent in Austin, as well as above-average effective rent growth: 4.4 percent, 5.2 percent and 4.6 percent, respectively).

While supply is continuing to increase across the U.S., the most recent Emerging Trends forecast from the Urban Land Institute and PricewaterhouseCoopers notes “a disproportionate share of new construction is at the high end. This makes sense when urban high-rise property in the gateway markets is priced at 20 percent to 30 percent more than the cost to construct.”

ULI’s report notes that multifamily’s real strength is that “it is not dependent upon just one demand segment. As local economies grow and the number of jobs rises, rental housing is required.”

http://www.globest.com/news/12_984/national/multifamily/Job-Growth-Rent-Growth-A-Matched-Pair-352358.htmlRead more at {Source}

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