• Zero Flux
  • Posts
  • States with Highest and Fastest Rising Construction Wages

States with Highest and Fastest Rising Construction Wages

Plus, The No. 1 Housing Market To Watch and 6 more real estate insights

Hey, If you have not received an email in a while, as a reminder you signed up on Zero Flux - A daily newsletter with 5-10 actionable real estate trends.

Unsubscribe below if you would like to stop receiving future emails

A Quote

You’re not going to get rich renting out your time. You must own equity - a piece of a business - to gain your financial freedom.

― Naval Ravikant

Latest Rates

Loan Type

Rate

Daily Change

Weekly Change

52-Week Range Low/High

30 Yr. Fixed

7.28%

-0.09

+0.79%

6.45% / 8.03%

15 Yr. Fixed

6.75%

-0.07

+0.85%

5.90% / 7.35%

30 Yr. Jumbo

7.48%

-0.07

+1.33%

6.15% / 8.09%

7/6 SOFR ARM

7.35%

-0.07

+0.63%

6.11% / 7.55%

30 Yr. FHA

6.70%

-0.12

+0.62%

6.00% / 7.44%

30 Yr. VA

6.72%

-0.12

+0.63%

6.02% / 7.46%

Macro Trends

Economic Watch: Job Growth Slows in April; Labor Market Remains Strong link

  • April saw the U.S. adding only 175,000 jobs, missing the expected 240,000. This shortfall reflects a deceleration in the labor market, despite being part of a longer-term slowdown trend.

  • The unemployment rate edged up slightly to 3.9%, yet average hourly earnings grew by 3.9% year-over-year. Although wage growth has decelerated, it still plays a significant role in ongoing discussions about inflation and monetary policy.

  • Despite slower job growth, sectors like health care and construction showed resilience, adding 56,200 and 9,000 jobs respectively. This suggests certain industry sectors continue to expand, underpinning the labor market's overall strength.

Real Estate Trends

Apartment Occupancy Ticks Up for the First Time Since Early 2022 link

Image

  • National apartment occupancy saw its first increase since February 2022, reaching 94.2% in April 2024. This marks a slight recovery of 10 basis points from the previous month across all major U.S. regions.

  • Despite the occupancy gains, rent growth remains sluggish due to high supply levels. Effective asking rents rose just 0.2% month-over-month, and year-over-year growth was nearly flat at 0.1%.

  • Some markets, notably Milwaukee and others in the Midwest, recorded notable rent increases, while high-supply areas like Austin faced significant rent reductions. The disparities in market performance highlight ongoing challenges in balancing supply and demand.

Enjoy the newsletter? 🙏 Please forward to a friend. It only takes 10 seconds. Writing this one took 2.5 hours. A referral also earns you a 3-month free trial of the pro plan. Just share the link at the end of this email with others.

April 2024 Housing Market Trends Report link

  • Housing inventory has shown significant growth for the sixth consecutive month. April witnessed a 30.4% increase in homes for sale compared to the same month last year, highlighting a continued trend towards more available homes. This is the highest level of active home listings seen since 2020, though still 35.9% lower than pre-pandemic levels from 2017 to 2019.

  • The median list price remains stable at $430,000, but the cost of homeownership is rising. Despite no year-over-year change in median list price, the cost per square foot has increased by 3.8%. This increase, coupled with rising mortgage rates, has resulted in a 6.9% year-over-year increase in the monthly cost of financing a typical home.

  • Market dynamics are pushing for quicker adjustments by sellers. There is a notable increase in the number of homes with price reductions—from 12.3% last April to 15.5% this year—as sellers react to a market that still demands affordability. This behavior reflects a shift towards pre-pandemic norms and indicates a more competitive listing environment.

States with Highest and Fastest Rising Construction Wages, 2024 link

Image

  • Construction wages are rising sharply, with average hourly earnings up 5% from last year to nearly $38 nationally in March 2024. Massachusetts leads with wages nearing $49 per hour, while ten other states also exceed $41 per hour.

  • The disparity in construction wages is stark across the U.S., with the highest wages in Northeastern and Pacific coast states, and the lowest in the South. For example, Arkansas and Mississippi report the lowest wages at around $28 per hour.

  • Wage growth is uneven, with four states seeing increases above 8%. These rates far exceed the national average, indicating extremely tight labor markets in these areas, which can impact construction costs and project timelines.

Please note: I send an email most weekdays at 6:00 ET, so if you don’t see the email in your inbox in the future, please check your spam.

Something I found Interesting

Comparing 1st Quarter Rent Growth to Normal Seasonal Behavior link

Image

  • U.S. apartment rents in Q1 2024 fell below seasonal expectations, recording a 0.1% drop compared to the pre-pandemic growth of 0.6%. This shift signifies a deviation from the decade-long trend of first quarter gains.

  • High supply levels are dampening rent growth, especially in Texas markets like Austin and Dallas, where new construction heavily outstrips demand. These areas have seen significant influxes of new units, challenging the balance between supply and demand.

  • Some Eastern U.S. markets, particularly Virginia Beach and Washington, D.C., outperformed their historical first quarter averages. In these areas, rent growth exceeded pre-pandemic norms by up to 0.4%, showcasing their resilience amidst the broader trend.

Pro Member Only Content Below

The No. 1 Housing Market To Watch Is One Most Americans Probably Haven’t Heard Of  

(This content is restricted to Pro Members only. Upgrade)

Portland, Maine Tops Luxury Home Market for Third Quarter Running 

(This content is restricted to Pro Members only. Upgrade)

Emerging Industrial Markets: Savannah

(This content is restricted to Pro Members only. Upgrade)

Online Grocery Sales to Grow 3X Faster Than In-Store

(This content is restricted to Pro Members only. Upgrade)

Off Topic

The World’s Fastest Growing Emerging Markets (2024-2029 Forecast)

Image

It would mean a lot if you could reply and tell me which story you liked the most 🙏. It helps me pick the best trends, but your reply also helps with deliverability + ensures the email lands in your inbox. 🙂

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here

Referral Milestones

Discount

Referrals Needed

3 MONTHS FREE on the Pro Plan

1

30% off FOREVER on the Pro Plan

5

50% off FOREVER on the Pro Plan

10

75% off FOREVER on the Pro Plan

15

100% off FOREVER on the Pro Plan

25

Want to sponsor the newsletter? Details here

If you are finding value, please consider helping the newsletter by becoming a paying subscriber

A subscription gets you:

✓ More issues per week

✓ Special reports on new housing studies

✓ Exclusive insights that are usually tucked behind paywalls (which I cover the costs for)

✓ Curated Top 10 lists

✓ The latest updates on prop-tech funding rounds

Join the conversation

or to participate.