Dec
07

Correlation Between Job Growth and Apartment Demand?

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Job Growth=Apartment Demand=Rent Growth is one of the basic equations in the apartment industry. It has been proven true time and time again, and once again in October, when the metro areas with the highest job growth were among those with the strongest annual effective rent growth, according to Bureau of Labor Statistics employment figures and Axiometrics apartment data.

Notice we didn’t say the highest job-growth metros have the highest rent growth. It is not a 100% correlation, and there are metros with lower job growth that have higher rent growth because of other factors.

The scatterplot chart below shows that a large percentage of the markets with job growth at or above the national rate of 1.9% in October (the horizontal solid line) outperformed the 4.9% national annual effective rent growth (the vertical solid line).

axio

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