Top 10 Cities With Highest Job Growth

Updated: Jan 9, 2021

You probably heard that when it comes to real estate, location is one of the most important factors. What makes a market a solid one for real estate? The answer is complex, but job growth is one of the main factors that make a market a strong market (in addition, I also look at population growth and rent growth as well).


In the past decade, the U.S. economy has been steadily growing. One of the signs for solid growth has been stable employment. Over the past 5 years, the employment rate has increased by 7%.


Employment growth is related to population growth because people move to areas where they can find more employment opportunities. Hence, a market with a solid employment base will almost always attract people, whom many can be potential tenants.


Here’s a list of the top 10 markets with the highest job growth in the country:


City #10: Gainesville, GA

Jobs added in the past 5 years: +16,111

% of jobs added in the past 5 years: 19.4%

Employment rate: 97.2%


City #9: Fort Collins, CO

Jobs added in the past 5 years: +33,350

% of jobs added in the past 5 years: 19.6%

Employment rate: 98%


City #8: Phoenix-Mesa-Scottsdale, AZ

Jobs added in the past 5 years: +388,901 jobs

% of jobs added in the past 5 years: 19.7%

Employment rate: 96%


City #7: Boise City, ID

Jobs added in the past 5 years: +60,126 jobs

% of jobs added in the past 5 years: 19.9%

Employment rate: 97.7%


City #6: Lake Charles, LA

Jobs added in the past 5 years: +18,274 jobs

% of jobs added in the past 5 years: 20%

Employment rate: 96.7%


City #5: Provo-Orem, UT

Jobs added in the past 5 years: +51,042 jobs

% of jobs added in the past 5 years: 20.6%

Employment rate: 97.5%


City #4: Nashville-Davidson–Murfreesboro–Franklin, TN

Jobs added in the past 5 years: +193,594 jobs

% of jobs added in the past 5 years: 22.4%

Employment rate: 97.6%


City #3: Reno, NV

Jobs added in the past 5 years: +49,382 jobs

% of jobs added in the past 5 years: 23.9%

Employment rate: 97%


City #2: Bend-Redmond, OR

Jobs added in the past 5 years: +18,542 jobs

% of jobs added in the past 5 years: 24.9%

Employment rate: 96.7%


City #1: St. George, UT

Jobs added in the past 5 years: +15,163 jobs

% of jobs added in the past 5 years: 25.7%

Employment rate: 97.1%


Summary


While purchasing a local multifamily property has its advantages in that you already know the market, it pays to look at out of state properties for the reasons outlined above. States without rent control or laws that favor tenants are advantageous to landlords. And markets that have good population growth, job growth and rent growth are markets where you should be investing your money. After you choose a market, just make sure you outline your investment criteria, build a team and start analyzing your deals. It will be a journey, but a fun one.


Are you a real estate investor and interested in learning more about passively investing in multifamily properties? Click here for the “Ultimate guide for the Passive Investor.”


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