In today’s Daily Data Discussion Post let’s finish the perusal of Job Growth / Supply Growth ratios that we started last Friday. 

If you missed the post Friday, it’s worth reading today to refresh the concept of what the ratio is, how it’s derived, and what we’re looking for in using the ratio. 

Markets with a ratio value less than one (1) are less than desirable – they either have an issue with lagging job growth or an oversupply of new multifamily units being recently or soon to be delivered.  Markets with a negative value are in even a worse position, as a negative value indicates total non farm job losses for the market – a disaster on a number of fronts, but typically a devastating negative impact on rental unit /housing demand. 

Here are the markets in our database as of today with the lowest Job Growth / Supply Growth ratios –

1)  Flint, MI   -11.1
2)  Detroit, MI   -10.6
3)  Ann Arbor, MI  -2.5
4)  Cape Coral, FL  -2.48
5)  Naples, FL   -2.13

Database Average:  0.7
Database Median:   0.4

Tomorrow we’ll begin a two day look at multifamily building permit trends at the market level. 

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