Southern California Real Estate Job Data Shows Slower Hiring Pace
Real Estate Job Growth Slows in Southern California
The real estate market in Southern California is experiencing a slowdown in hiring, according to recent state jobs data. In July, there were 810,500 workers employed at property-related companies in Los Angeles, Orange, Riverside, and San Bernardino counties. However, only 2,400 positions were added for the month, with most of the growth occurring in the Inland Empire.
This sluggish hiring pace is a stark contrast to the pre-pandemic period from 2015-2019, where an average of 6,800 real estate jobs were added in July. The current slowdown can be attributed to various factors, including soaring interest rates impacting buying and selling activities, the shift to remote work affecting the office market, and challenges in recruiting workers in a tight job market.
It’s important to note that many self-employed individuals in the real estate industry are not included in government job statistics, and the sharp decline in home sales is also impacting this group. Despite the slowdown, real estate still accounts for 10% of local official employment in July.
When looking at specific real estate-related niches, construction stands out as the leading sector with 383,200 workers in various trades in July. However, the hiring pace in construction has slowed compared to previous years. Other sectors, such as lending, real estate services, building supplies, and building services, have also seen fluctuations in employment numbers.
Geographically, Los Angeles County, Orange County, and the Inland Empire each have their own trends in real estate job growth. While Orange County saw a 1.7% one-year gain in real estate jobs, Los Angeles County experienced a 0.6% one-year drop. The Inland Empire had the highest one-year gain at 3%.
Overall, the real estate industry in Southern California is facing challenges in hiring and growth, reflecting the broader economic trends in the region. As the market continues to evolve, real estate companies will need to adapt to changing conditions to remain competitive.