Employment a hidden driver in current housing market: Cameron Kusher
Employment levels are a hidden driver in the current housing market with low interest rates contributing to the recent growth in home values, according to CoreLogic RP Data research analyst Cameron Kusher.
He said employment levels help explain why home value growth has been much stronger in Sydney and Melbourne over recent years than in other cities.
"The recent relative strength in job creation in Brisbane and Hobart may signal increasing housing demand in those cities over the coming year,” he said.
"Full-time employment growth has recently ramped up in Brisbane and Hobart, while in Adelaide, shedding of full-time jobs continued and much the same scenairo occurred in Perth and the ACT.
"Although the rate of full-time jobs growth was lower in Sydney, it , along with the NT, have been the only two regions that have recorded a greater total increase in full-time employment than part-time employment since over the past 12 months. It is an obvious statement but full-time employment growth would seem to be more important than part-time as it means the employee is working more and in most cases earning more money which is in- turn more conducive to home ownership.”
