Instant Reaction: May Jobs Report

The following is NAR Chief Economist Lawrence Yun’s reaction to the U.S. Bureau of Labor Statistics (BLS) report on the employment situation in May:

“Housing demand will be supported by the continuing job gains even as mortgage rates rise. The latest monthly job addition of 223,000 brings the total net new job creations over the past 24 months to 4.4 million. Over the comparable two-year period, however,  2.4 million new housing units were built. In a strong economy such as now, over 3 million homes should have been built. With the unemployment rate falling to 3.8%, the lowest in 18 years, wages are picking up. But more home construction is needed to better satisfy the rising demand. Otherwise, housing shortage will push up home prices out-of-reach even for households with good stable jobs.”