Construction Job Growth a Good Sign for Investors

Construction Job Growth a Good Sign for Investors
By: Nicholas A. Dunlap, CPM

Ahead of the November elections, there has not been much in terms of hope, good news or growth for millions of out of work Americans.  However, recent labor force numbers published by the Employment Development Department suggest that some industries are well…thriving? While construction, financial, information and manufacturing sectors were the four most significant contributors to the meek over-all numbers, perhaps the most important sector to consider is construction.

Previously here at Property Lines, we have discussed what construction related materials and services can represent as economic indicators.  You can read that blog by clicking here.

California ranked 3rd nationwide in terms of total construction jobs added at 5,100 jobs, while 1st place once again went to Texas with 13,600 and Florida came in just ahead of the Golden State with 5,300 jobs.  Texas is pretty much in a league of it’s own right now.  The job growth, economic growth and general upbeat business climate is not shared by many states.  Now, off my lone star soapbox and back to the golden state.

Construction employment growth numbers bode well for real estate owners who have seen increased demand for land and existing structures drive market values in the for sale market higher and higher.  In the multi-family sector especially, it’s serendipity for owners.  Increasing rents, increasing occupancy, increasing market values and the availability of inexpensive financing.

So, what is Nick’s pick? Increase your rents, refinance to take advantage of the low rates and hold on to your money.  The post-election, still fragile economy will likely yield opportunities for those who wait.