This is a narration of our weekly Rent and Operating Trends Report.
The U.S. economy, specifically the employment market, remains stalwart as growth continued in May. Roughly 340,000 new jobs were added last month, giving many economists hope that we may avoid a recession this year. Despite continuously rising interest rates and persistent inflation, the employment market has added jobs in each of the past 29 months. Over the last 12 months, roughly 3.8 million jobs have been added. While some sectors like tech and media continue to make headlines with layoffs, the broader economy is adding jobs in almost every sector. Wage growth is also increasing, and average hourly wages are up 4.3% year-over-year. While this level of growth is above the long-term average, it does not represent extreme wage inflation. Continued wage growth should help residents handle increased rents and housing expenses. Last week’s jobs report was not all rosy, as the unemployment rate increased 30 basis points. However, with overall unemployment at 3.7%, and new job formations north of 300,000, there is little concern as to the general state of our job market.
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