According to a recent article in the Wall Street Journal, some cities and employers are seeing adverse effects of a booming economy. Because of low employment rates throughout the US, we're now noticing a trend of labor and housing shortages. But what does this economic shift mean for you as an investor?
The article suggests that the US is currently in a new shortage--labor. Because of this, many employers have had to incentivize workers to move to their cities. And while you might think that's not totally unheard of, it actually is in markets like Columbus, Ohio or Portland, Maine.
In conjunction with the labor shortage comes another effect. In these markets, we're also seeing a lack of housing. There's a demand for new construction, but very few properties are available. In many of these markets, people have had no choice but to rent.
As a real estate investor, this is good news. It means there's no shortage of renters, which in turn lowers vacancy rates. In the majority of my rental markets, my vacancy rate is close to zero. It's a great time to be a real estate investor, as long as you're purchasing in the right markets.
You can hear more about the labor shortage on episode 330 of the Investing in Real Estate Podcast!
Additionally, we have an entire playlist on our YouTube channel dedicated to keeping up with the economy! Be sure to subscribe!