Labor Market’s Impact on the Economy and CRE
HOW POST-COVID EMPLOYMENT TRENDS ARE IMPACTING CRE DEMAND
U.S. Labor Market Continues Strong 2023
The U.S. economy has added over 1.6 million jobs in 2023, the third strongest start to a year since 2000
Labor market gains have helped boost multifamily and retail demand
Post-Pandemic Job Growth Not Evenly Distributed
14 Major Metros Have Expanded Workforces by 5%, including cities like Austin, Dallas, Orlando, and Phoenix
At the same time, 9 have yet to recover to February 2020 employment levels
Developers Most Active In High-Growth Markets
Supply growth in the multifamily segment is over 5% in certain high-growth markets
Household formation was positive in New York and Chicago since the pandemic, showing the importance of looking at the complete economic picture
*Through May
Sources: Marcus & Millichap Research Services, BLS
