Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
MinnEcon Blog
Paul Tosto

In housing construction, some unpleasant job stats

Go Deeper.

Create an account or log in to save stories.

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Unemployment and housing are joined at the wrist. Rising unemployment hurts housing demand and that drives down the demand for residential construction jobs. That's pretty much what we've seen in the recession.

Throw the housing / mortgage crisis into the mix and it's easy to see why the home construction business is in tough straits.

So while we hope Minnesota's new jobless data -- set for release on Thursday -- show better times for construction, numbers released today by the Minnesota Housing Partnership don't give us a lot of optimism.

The group's second quarter report holds lots of great detail. But this jumped out at us:

Quarterly employment in residential housing construction fell to an average of just under 9,100 jobs per month, the lowest level in 15 years for the second quarter.

The supply of homes for sale rose to 7.2 months by the end of the quarter, which may continue to place downward pressure on prices.

On average, 29% of the supply of homes for sale this quarter included foreclosures or short sales. Three years ago only 9% of the inventory consisted of such homes.

Here's the employment trend line:

In Minnesota's July unemployment report, construction had the dubious honor of having the greatest year-over-year job loss (-6,500) and the highest percentage job loss (-6.2 percent) of any state sector.

My colleague Chris Farrell pointed out this morning how closely housing construction is tied to unemployment.

"The housing market is not a good place to be right now," he said this morning. He was talking about sales and prices.

For now, at least, it also describes the state of the folks who do the building.

*************************************

If you're in housing construction or have a different take on what's happening currently, we'd love to hear it. Post something below or contact us directly at MinnEcon.