The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics (BLS) report on the employment situation in April:
“Fantastic news on the jobs market as abundant job openings are getting filled. Such conditions boost consumer confidence which further feeds the economy. Despite the hefty 263,000 net new job creation in April (and 2.6 million over the recent 12 months), essentially no jobs were added in the key housing sector where there is an acute housing shortage. Jobs in residential construction were reduced by 2,500 and grew by only 3,100 in residential contractor trade in April.
For the economy to rise in a healthy balanced way over the long haul, an adequate housing supply is a must. More home construction of mid-priced homes are needed so that teachers, nurses, and police officers are able to live in the community in which they serve. For that to happen, residential construction jobs and residential contractors need to grow by close to half a million. There is no expectation for quick gains as construction job openings go unfulfilled. Expect housing shortage to be a major issue in the next year’s election.”