I have been preaching for many postings about what our real estate market needs to recover is JOBS. It is difficult to buy a home if you don’t have a job… The pricing won’t recover until we get the unemployment rate back to 3% – 5%, this gets more and more challenging the longer the recession (or this “recovery”) continues. Assuming we retain population and households, we continue to add people to the workforce and need that many more jobs. (as a side note, this may not be a problem referring to a previous posting on the twin cities population and households moving away – which is directly related to JOBS.)
These charts come from US Department of Labor, Bureau of Labor Statistics graphed by the St Louis Federal Reserve, just released today.
This chart shows us the unemployment rate for Minneapolis/St Paul – Bloomington region, aka. the Twin Cities metro area. As you can see we are not back to where we should be, we are at 7.5% unemployment rate. A far cry from the 2% to 3% we were experiencing in the late 90’s and early 2000’s.
We can zero in a little further to just Hennepin County. Hennepin County is doing slightly better running at 6.9% unemployment rate. Again a far cry from the 2%-3% unemployment rate and the 4%-5% rates through the first decade of the 2000’s.
- Minnesota property taxes heading higher (craigkamman.wordpress.com)
- Twin Cities Population decline, by County (craigkamman.wordpress.com)
- Minnesota Unemployment Rate up to 7.2% August 19,2011 (craigkamman.wordpress.com)
- Minneapolis property taxes, not so bad?? (craigkamman.wordpress.com)
- Interactive map of unemployment rate by country (holykaw.alltop.com)
- Case Shiller Home Value Index MN vs. MN Property Tax revenue (craigkamman.wordpress.com)