Alex Thompson’s Post

In September, St. Louis and Indianapolis broke into the nation's top 10 markets for annual job gains, putting the Midwest on the map alongside top performers from the Northeast, South, and West. As job growth cools across many regions, these two cities stand out, highlighting the Midwest's economic resilience. Local job growth plays a pivotal role in driving multifamily housing demand—watch these markets closely. #Midwest #multifamily #jobgrowth

WSJ ranked Salt Lake City at the top of the list for the 2023 hottest job market, citing the 'Silicon Slopes' and the diverse economy as key factors. I've always been bullish on Utah, particularly SLC's real estate market. Firstly, the natural population growth here is the highest across the US. Secondly, the land lock effect limits the area where houses can be built. The pandemic has further fueled immigration from other states due to the abundant outdoor activities and the beauty of mountain views, and I believe these migrants are here to stay. The housing market has remained resilient during the past year and a half despite the high interest rate backdrop. I feel the current situation resembles the Bay Area market when tech workers flooded San Francisco, pricing out buyers from other industries. Currently, a decent single-family house in a good location will likely cost above $600K. While this price point is already high, I believe the trend will continue upward

Multifamily leaders continue to face challenges in attracting top talent.  The challenge still looms out there. I have 80 resumes that have come through but not one is what I am looking for.  In today’s job board and networking environments it makes it easy to be alerted for new jobs. You can place a setting to be alerted for the type job you would like to have. That does not mean you are currently qualified for the job.It takes just a few clicks to apply and upload your resume. Resulting in 80 hits to your job within 24 hours.   Applicants do know they do not have all the skills that the posting is requiring but they have “some” and think, “why not, they might be interested and I know I can do the job”. As the hiring manager you are wanting someone who can walk in and have very little learning curve. 

⛰️☀️ Follow the mountains and sunshine for the best job markets in America. Salt Lake City was the country’s hottest job market in 2023, followed by three cities in Florida: Jacksonville, Orlando and Tampa. Miami also made the top 10, making Florida the top state last year. Workers flocked to Mountain West and Sunbelt cities for their plentiful job opportunities, wage growth, affordability and recreational offerings. The Wall Street Journal, working with Moody's Analytics, determined the strongest labor markets based on five factors: the unemployment rate, the labor-force participation rate, changes to employment levels, the size of the labor force and wages. Cities with strong job markets were those well-positioned as affordable alternatives to the traditional tech and financial hubs. ▪ For over a decade, Salt Lake City has attracted white-collar workers from the San Francisco Bay Area and Los Angeles. This migration increased after the pandemic, drawing in young workers with a deepened desire for easy access to the great outdoors. ▪ Meanwhile, Florida as a whole continues to be a magnet for remote workers who like the affordability and the lack of a state income tax. Banks, mortgage lenders and real-estate businesses hired aggressively last year in Florida. See our full rankings: https://lnkd.in/ePN6aRFX 

I’ve been reading several articles on recent employment forecasts. One, put out by RealPage, predicts that while some markets like Orlando are expected to see job growth above the U.S. average in 2024, others might not be as fortunate, naming 24 that fall below the average. I’ve been fortunate to work with amazing companies such as Atrium Management Company in Orlando, which holds the key to success in multifamily development by staying adaptable and ahead of trends. Austin, for example, also on the positive job growth list, still has a surplus of luxury apartment buildings and (like most everywhere else) declining home prices and rents. This phenomenon, called strategic inertia, happens when developers keep investing in a trend even after it has started to slow down. So, what is the solution? In CRE, these predictions highlight how important it is to match development plans with the changing market; though I also recognize the years of planning before a project begins, maybe the real question is, “How do we pivot faster?” It's not just about building more; it's about building smarter.

The Kansas City metro ranks 12th in the list of 55 America’s hottest job markets highlighted in this WSJ article. We have a balanced performance across various metrics considered for ranking, including our unemployment rate, labor-force participation rate, changes to employment levels, the size of the labor force, and changes in average weekly wages. Although we are not at the very top of the list, Kansas City's placement within the top 15 indicates a strong job market relative to many other metropolitan areas across the United States. The analysis, which was a collaborative effort between The Wall Street Journal and Moody’s Analytics, reviewed around 380 metro areas and distinguished the rankings based on the size of the metropolitan areas—separating those with more than one million residents from smaller ones. Kansas City's notable position suggests that, despite not being a traditional tech or finance hub like Salt Lake City or cities in Florida that dominated the rankings, we have our own, unique strengths in the labor market. This includes a diverse economy, favorable business conditions, and specific industry clusters contributing to our overall job market health. I would also contend we have a major geographic advantage with large amounts of available land, world-class infrastructure, vast agricultural assets, and clean energy resources. Kansas City's ranking among cities known for their tech and finance sectors, or those with significant growth in such industries, underscores the broader shift in the U.S. job market landscape. It reflects a trend where more affordable cities with diverse economic bases and quality of life offerings are increasingly becoming attractive to the workforce, including remote workers and those in traditional as well as emerging industries. Now is the time we need to take full advantage of this trend. #riseoftherest #diversifiedeconomy #attractivelifestyles #talent #richresources #futurefocus #kansascity

Austin Region: By the Numbers ⭐ Austin is the 11th best performing among the top 50 metros, adding 27,300 jobs, or 2.0% growth, in the year ending in September. 🤩This ranking is 16 places improved from last month’s year-over-year growth. 🏎️ The fastest job growth over the last 12 months occurred in Austin’s construction and natural resources (6.3%) and leisure and hospitality (4.8%) industries. 👷♂️ Austin’s seasonally adjusted unemployment rate is 3.5% in September, unchanged from August. [Opportunity Austin] . . . . . #EconomicIndicators #AustinTexas #AustinTX #JobGrowth

More affordable cities that serve as tech and finance outposts top the latest annual rankings. Follow the mountains and sunshine for the best job markets in America. Salt Lake City was #1 in 2023. Cities with strong job markets were those well-positioned as affordable alternatives to the traditional tech and financial hubs. See the Top 10 in the Comment box below. The bottom 10 cities included Milwaukee, New York, Sacramento, San Bernardino, Cleveland, Pittsburgh, LA, Chicago, Providence, and Memphis.

Does the current job market in commercial real estate look different for entry-level candidates or is every level feeling the pressure? There are a lot of factors at play.

Austin added 22,500 jobs (1.7% growth) over the past year, ranking 14th among the top 50 metros. Growth was driven by construction and natural resources (5.3%), education and health services (3.2%), and other services (3.2%). Notably, jobs in professional and business services have rebounded over the past three months, adding 7,000 jobs—accounting for 27% of the overall growth. Austin’s unemployment rate remains competitive at 3.6% in October, outperforming both the state and national averages, underscoring the region’s strength as an economic leader. Read the full report here: https://hubs.la/Q02YRjXC0