Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x

Posted over 4 years ago

The 12 Least & Most Impacted Markets by Employment Change

Keeping pace with real time data is never a small task, but it’s critical nonetheless when managing your real estate investments. As a hands-on syndicator and sponsor, being keen on real time data can give you a serious advantage in implementing real time strategies or adjustments to your business plan to either capitalize on opportunity, mitigate risks and negative impacts, or often both. In particular, with the severe impacts of COVID, this is more important now than ever before, as the changes are swift and unpredictable.

One of the most essential benefits of real estate investing is building out a solid passive income stream from your tenants; tenants, of course, require employment to pay their rent. Despite what some may think about the eviction moratorium, most tenants want to pay their rents and have peace of mind like any of us. Earlier this week I shared information on how to best handle non-paying tenants, so today I’d like to share which markets these challenges are most likely to be found in for now, as well as which are weathering the challenges quite well.

Based on a recent report from RealPage, the annual rates of job change in many major markets has been significant. With the impact of COVID, some markets have of course been affected far worse than others, while a couple markets have in fact seen an employment increase. With this in mind, here are the 12 least and most impacted major market employment change rates as of July 2020:

The 6 Most Impacted Major Markets by Employment Change:

6. Washington-Arlington-Alexandria, DC-VA-MD-WV

309356 Ba85abb9eea2454ba4fe392e9bbd5758 Mv2

Annual Employment Change 2019 - 2020 (#): -244,800 (-11.3%)

Average Rent for an Apartment: $1,377

Primary Employment Industries: Manufacturing, Retail, Healthcare

5. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

309356 6ca0d9563a2041c4aa58fdc6d1c3d2e1 Mv2

Annual Employment Change 2019 - 2020 (#): -254,900 (-8.6%)

Average Rent for an Apartment: $1,652

Primary Employment Industries: Healthcare, Retail, Education

4. Boston-Cambridge-Newton, MA-NH

309356 12fdf2e1ddf44992ba6246fd38a4f96a Mv2

Annual Employment Change 2019 - 2020 (#): -328,700 (-12.2%)

Average Rent for an Apartment: $1,377

Primary Employment Industries: Education, Healthcare, Professional Services

3. Chicago-Naperville-Elgin, IL-IN-WI

309356 A8d196cba6f84dc5bea7053a2022211c Mv2

Annual Employment Change 2019 - 2020 (#): -367,800 (-8.1%)

Average Rent for an Apartment: $1,943

Primary Employment Industries: Healthcare, Manufacturing, Retail

2. Los Angeles-Long Beach-Glendale, CA

309356 3410d39f23374ef5a8dbce9ee6ec7f07 Mv2

Annual Employment Change 2019 - 2020 (#): -424,900 (-9/4%)

Average Rent for an Apartment: $2,106

Primary Employment Industries: Healthcare, Retail, Hospitality

1. New York-White Plains, NY

309356 54d683ce22f74145a93bc961799e189c Mv2

Annual Employment Change 2019 - 2020 (#): -1,026,700 (-14.2%)

Average Rent for an Apartment: $2,804

Primary Employment Industries: Healthcare, Education, Professional Services

The 6 Least Impacted Major Markets by Employment Change:

6. Fayetteville-Springdale-Rogers, AR-MO

309356 C322091b468844fba6fa323118f0297c Mv2

Annual Employment Change 2019 - 2020 (#): -4,400 (-1.7%)

Average Rent for an Apartment: $781

Primary Employment Industries: Healthcare, Manufacturing, Retail

5. Lincoln, NE

309356 8c27bcb5620345c593386c84e09b6eae Mv2

Annual Employment Change 2019 - 2020 (#): -1,400 (-0.7%)

Average Rent for an Apartment: $968

Primary Employment Industries: Healthcare, Retail, Manufacturing

4. Provo-Orem, UT

309356 1adf2a38d14c4ade9ee53c6797a465ac Mv2

Annual Employment Change 2019 - 2020 (#): -700 (-0.3%)

Average Rent for an Apartment: $1,434

Primary Employment Industries: Education, Retail, Healthcare

3. Chattanooga, TN-GA

309356 5d4c1f4df118400387da0075672849bb Mv2

Annual Employment Change 2019 - 2020 (#): -700 (-0.3%)

Average Rent for an Apartment: $1,003

Primary Employment Industries: Manufacturing, Healthcare, Retail

2. College Station-Bryan, TX

309356 7546db85166d49cfa22445da30e7d64f Mv2

Annual Employment Change 2019 - 2020 (#): + 700 (0.6%)

Average Rent for an Apartment: $974

Primary Employment Industries: Education, Retail, Hospitality

1. Boise City, ID

309356 Ed6bb2004dc74da5a7dc9053ebddbdab Mv2

Annual Employment Change 2019 - 2020 (#): + 1,700 (0.5%)

Average Rent for an Apartment: $1,194

Primary Employment Industries: Healthcare, Retail, Manufacturing

Sources:

US Bureau of Labor Statistics

Statistical Atlas

Rent Cafe

Want to Invest with Ellie?

If you are interested in learning more about passively investing in apartment buildings, click here to schedule a call with Ellie Perlman.

Want to Become a Syndicator Yourself?

It’s one thing to start a business, and an entirely different challenge to make it truly sustainable. If you are interested in building out your own multifamily syndication business, and scaling it, click here to learn about Ellie’s mentoring program.

About the Author

Ellie is the founder of Blue Lake Capital, a real estate company specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

Ellie is the host of REady2Scale , a podcast that focuses on the "APS" of real estate: Asset, Process, and Strategy. Each episode discusses how investors can scale their real estate portfolio and/or businesses.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.



Comments