The Bay Area's unemployment rate could fall below five percent in 2016, according to economists at UCLA. This would be considered "full employment", which sounds like a good thing, but would make it even more difficult for individuals looking to rent or buy a place in the area.
Stephen Levy of the Center for Continuing Study of the California Economy explains that this would mean an increase in home and rental prices. "We have a very hot economy," he says, since more jobs would mean more people moving to the Bay Area and creating more demand. "It’s good news on the job and wage front for everybody. The problem is that unless you make a really, a lot of money your rent or home prices are far outpacing the gains that you’re getting in income."
Of course, there will be more jobs to go around in every industry, not just tech. “More jobs in restaurants and more jobs in shops and more jobs for service people because the tech folks have income to spend,” Levy said. “Construction is roaring back and in fact we’re facing a shortage of skilled workers.”
Watch the news report on CBS Local: http://sanfrancisco.cbslocal.com/2015/09/28/bay-area-full-employment-ucla-housing-market-real-estate-rents/
Stephen Levy of the Center for Continuing Study of the California Economy explains that this would mean an increase in home and rental prices. "We have a very hot economy," he says, since more jobs would mean more people moving to the Bay Area and creating more demand. "It’s good news on the job and wage front for everybody. The problem is that unless you make a really, a lot of money your rent or home prices are far outpacing the gains that you’re getting in income."
Of course, there will be more jobs to go around in every industry, not just tech. “More jobs in restaurants and more jobs in shops and more jobs for service people because the tech folks have income to spend,” Levy said. “Construction is roaring back and in fact we’re facing a shortage of skilled workers.”
Watch the news report on CBS Local: http://sanfrancisco.cbslocal.com/2015/09/28/bay-area-full-employment-ucla-housing-market-real-estate-rents/
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