While the stock market has been volatile the past few month, the housing market hasn’t.
In a sponsored content piece in Quartz, PIMCO outlined four reasons why there are still plenty of opportunities left in housing.
Here is a preview of number one:
1. Strong job growth and consumer confidence
The US economy has added roughly 3 million private sector jobs over the past year. This includes more than 750,000 new jobs in the 25- to 34-year-old cohort, an important segment for first-time buyers, a level that is near a 15-year high. A pickup in wage growth is likely given the improvement in the labor market; the unemployment rate declined by 2.5% in the past two years to reach 5.0%. We expect that more jobs and higher incomes will lead to rising consumer confidence and demand for homes, even in the face of modestly higher mortgage rates.
The latest report from the Bureau of Labor Statistics reported that October job creation surged to 271,000, crushing expectations of 190,00 and even top-end forecasts for 240,000.
As an added bonus, here are the top 10 investment markets for single-family rentals.