Job growth is a requirement for real estate appreciation in a normal market. While this still isn’t a normal market, the latest Central Texas employment numbers provide hope that normalcy may someday return.
According to the Texas Workforce Commission, the Austin-San Marcos-Round Rock metropolitan area added 17,300 jobs over the last 12 month period. This 2.3 percent increase dropped the unemployment rate from 7.2% in August to 6.8% in September. In comparison, the national unemployment rate is still 9.2% and the Texas unemployment rate is 7.9%.
According to the Austin American Statesman, “From August to September, the area brought on 2,700 positions, primarily from government adding 4,400 jobs. Government employment was up about 3,000 jobs year-over-year in September. Education, health, leisure and hospitality were the only other sectors to add jobs from August to September, adding a cumulative 1,400 jobs. Professional and business services shed about 1,100 positions during the same one-month period, the largest decrease that period.”
Austin has been very lucky. Our real estate dip has been relatively minor.