It’s no surprise that the Nashville housing market and the city’s employment rate are affected by each other – the more people employed in a certain area, the higher the need for housing.
According to the Nashville Business Journal and Kiplinger.com, Nashville has been named one of the nation’s eleven comeback cities for 2011. This is based mainly on the projected rise in employment; however, according to Realty Times’ Carla Hill, this increase will have a direct affect on the housing market, as well.
“After plunging 7.3% during the recession, employment will climb this year by nearly 3% [in Nashville],” cites Kiplinger.
Bob Nielsen, the National Association of Homebuilders’ chairman, tells Realty Times that not only does the housing market improve as employment rates improve, but an improved housing market helps the employment rate, as well.
“Home building is a key driver of the American economy. By generating economic activity including new income and jobs, purchases of goods and services, and revenue for local governments, housing—which has historically accounted for around 17 percent of the GDP — can put America back to work,” says Nielson.
“The NAHB says that income made from construction activity is then spent in the local economy. New houses earn local taxes. New taxes pay for teachers, police, and other services. It’s an all around great scenario,” cites Hill.
Although the particular employment growth projected for Nashville lies within the accounting and financial services (not construction), states the Business Journal, the surge could prove positive for the city’s housing market just the same.