Recent employment data from the government indicates the country is experiencing a stronger recovery and the housing market may soon reflect that.
One expert told GlobeSt.com that rental demand and job creation correlate heavily, and others have cited employment as the main limiting factor on household formation and rental demand. Similarly, what rental prices the market can support depend largely on income growth, even in competitive times.
Some industry stakeholders were cautious, indicating that the strong employment growth recently witnessed may be partially a local phenomenon, centered around specific markets while others remain lethargic rather than spreading. They noted that previously leading markets such as New York and D.C. are seeing the pace of business slow somewhat.
Despite this outlook, others indicated the data appear heavily positive. The Department of Labor reported more than 200,000 new jobs have been created in four of the past six months, a trend which may continue. At the same time household incomes grew in the fourth quarter, according to the Commerce Department, and the Federal Reserve Bank of New York determined in a study that unemployment might drop from the current level of 8.3 percent to 6 percent during the first half of 2013.