Aug 07, 2012 11:02 AM EDT
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Housing Market 2012: Job Growth Was Vital For Recovery

By Donovan Jackson
Foreclosure
(Photo : Reuters) Mitt Romney gives a speech pertaining to foreclosure

The housing market may be seeing a slight recovery in the months to come according to Stuart Millier, CEO of homebuilder Lennar.

"It feels very much like we've hit a bottom and we're starting to come off of that bottom," Miller told analysts in June.

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With the housing market beginning to pick up due to the slowing of foreclosures and the small spike in employment during July, a direct, beneficial effect on construction jobs has been documented.

The construction industry was one of the hardest hit sectors, slashing 2.3 million jobs in the storm of the financial crisis.

As of July, the unemployment rate for construction workers was 12.3 percent, much higher than the 8.3 percent unemployment rate for the broader U.S. population.

Last month, homebuilders added 5,800 workers in July. Fortunately the housing recovery could help boost hiring in related professions as well. Real estate agents, furniture manufacturers, plumbers, architects and engineers may all see an increase in available job positions.

According to Money.cnn.com one of the big problems with the current job market is that there are occupations open, but many of the qualified applicants are in the wrong place at the wrong time. Relocating to pursue employment isn't an option for those who can't sell their houses.

As of right now, there has been job increase in energy-rich states like North Dakota, Oklahoma and Kansas, however that will not help anyone who is not living in those states and has other financial obligations to where they are currently located.

A potential housing recovery has the power to make a substantial improvement within the already failing economy. As home prices increase, it is perceived that so has the buying potential of workers.

Traditionally, residential real estate has accounted for roughly 5 percent of U.S. gross domestic product.

According to economist, in order for the economy to truly begin to get better, this trend in the housing market will have to continue for at least another three to four years.

 

 

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