Annually, Forbes releases its top cities for job growth and it is a comprehensive list of which locations in the United States are seeing the more growth. Not surprisingly in 2016 California continues to dominate the list as the Silicon Valley area continues to grow as technology companies continue to develop and grow even larger. Forbes looks at job growth and creation whether it be short, medium or long term back to 2004 and considers the momentum that job growth has seen to determine the ranking.
For the commercial real estate sector job growth in a city can mean the possibility for more demand from renters which means possible opportunities in the multifamily market. Here is a look at the top cities for job growth and their multifamily market.
This Californian metropolitan saw job growth of just under 24% from 2010-2015 due in large part to the tech boom in the Silicon Valley area. Along with the job growth, San Francisco has also seen a large surge in real estate prices with the market climbing to one of the most expensive in the country. Per the Freddie Mac Multifamily Outlook 2016, San Francisco will continue to see strong growth in the multifamily sector due to the job growth that it is seeing. However, it is important to note that they predict the growth will be less than the previous year.
2. San Jose
Not far from San Francisco another California metro area is seeing large job growth as well at just under 21% growth. With San Francisco’s cost of living continuing to increase the surrounding areas are seeing demand increase due to a lower cost of living. Due to this Freddie Mac lists San Jose as having the sixth highest predicted growth in the multifamily sector in the country.
With San Jose’s proximity to San Francisco and the lower cost of living there is opportunity for multifamily to succeed as employees from that area looking for less expensive alternatives for living without sacrificing much distance to work.
This southeastern metropolitan has made a tremendous comeback on the Forbes list by climbing 14 places from the previous list. Many are moving to this area and it is helping to grow the construction, professional business service jobs and hospitality sectors to grow dramatically. It is also important to note that in the past 26 years the population of the Orlando area has grown by 1.1 million people.
With strong job growth and a continuously growing population the multifamily market is in demand and does not show signs of slowing. The other unique aspect of Orlando is its large tourism economy and the large number of people visiting Disney World. This presents a unique opportunity to rent multifamily vacancies to tourists for vacation usage.
If you’re interested in any of these markets, connect with a member of our Coldwell Banker Commercial team today!
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