The National Association of Realtors (NAR) analyzed how gains in midwestern manufacturing jobs are affecting the housing market.
In its Economist’s Outlook blog, NAR reports that manufacturing was the fourth largest source of job gains in February 2019, creating 244,000 jobs over a year ago. The increase was particularly high in rust belt states like Michigan (+13,300), Ohio (+10,100), Illinois (+9,100), Indiana (+4,700), Wisconsin (+2,800), and New York (+300).
In some areas, these job gains seemed to boost the housing market, with home prices increasing by six to seven percent in Michigan, Wisconsin, Ohio, and Indiana.
However, with home prices rising at a faster pace than wage growth, the manufacturing job gains have yet to make a significant dent on homeownership. The homeownership rates in Midwest states are still trending downwards, except for Wisconsin. Home prices in the four states (Michigan, Ohio, Indiana, Wisconsin) se states have been appreciating in the range of six to seven percent while manufacturing wages have increased by less than two percent, making a home purchase unaffordable or less affordable for manufacturing workers.
