For investors looking to make a solid financial return in 2019, the property market continues to offer opportunities due to the stabilizing U.S. jobs market. The U.S. Bureau of Labor Statistics recently released data showing that nonfarm payroll employment increased by 304,000 in January of 2019. The report showed unemployment edged up to 4% due to the government shutdown in early January. However, shifting demographics across the nation show that job seekers are pursuing opportunities in more densely populated cities, which will help stabilize the job market as more work becomes available.
Southern cities top the list of a recent survey evaluating job growth going into 2019. Other locations that made the list include Houston, Phoenix and San Francisco. Houston remains a strong investment option due to the improved job market that has seen an 8.7% job increase since December 2017, according to the January 2019 report. Phoenix saw a 6.7% increase in jobs for 2018, and San Francisco saw a 5% increase overall.
What do all these figures add up to? A simple truth: Booming job markets create great opportunities for investors to add real estate to their investment portfolios.
Investing in cities with high demand for rental properties, such as New York, Los Angeles and Houston, can create additional opportunities for investors. One analysis found that New York has invested the most in multifamily buildings since 2000, followed by Los Angeles, then Dallas and Houston. In Texas, the excessive demand for rental properties in the wake of historic Hurricane Harvey prompted area developers to erect a number of new residential projects throughout Greater Houston. Demand for workforce housing in addition to housing for those displaced by Hurricane Harvey has resulted in a gradual stabilizing of the rental market….