San Diego County received encouraging news this week when the state Employment Development Department released employment data and the unemployment rate is at a 7% which is the lowest it has been in three years. In October San Diego employers added 10,800 jobs and annual growth was up to 1.8%. This places San Diego ahead of both the greater state of California and the nation for job growth and unemployment rate. And this is great news for the real property market in San Diego.
“The state Employment Development Department released the employment data for both September and October on Friday because the Oct. 1-16 shutdown delayed collection of the data. It showed San Diego’s job market improving from August, when annual job growth hit a low point of about 1.15 percent. That trailed the state and the nation.
In October, when employers added 10,800 jobs, annual growth was up to 1.8 percent, now faster than the state’s 1.4 percent and the nation’s 1.7 percent.
“San Diego’s burst of economic activity during the past couple of months is welcome and suggests that the region retains considerable resilience,” said Lynn Reaser, chief economist at Point Loma Nazarene University.”
In 2008 the recession began because of the housing market bubble burst. Since that time the road to economic recovery has been slow. However with news that unemployment is down to 7% and that jobs are being created it’s a good sign that the market is shifting and that real property investment is a solid choice moving forward.
With new job growth demands for housing will increase. Unemployment dropping is also a sign that people are starting jobs and will have income to afford housing. This places a strong advantage into the hands of real estate investors as they can predict that their properties will be full and that the value will increase.
All in all, this is great news for San Diego in every way possible. With the economy recovering hopefully the last vestiges of the recession will finally dissipate and normalcy in the local market and economy be restored.
At Real Property Management we are excited for the rebounding economy. We see that as a great sign for both investors and for tenants. One of the core competencies that we offer our real estate clients is a thorough background check, including employment and income verification. With the growth in jobs we know that this will help ensure that potential tenants applying for residency will be more qualified for locations without problems or hiccups.