Los Angeles real estate job market sees decline amid rise in interest rates
The real estate job market in Southern California is shrinking as interest rates continue to climb.
The job market for real estate and construction-related fields is contracting in Southern California, according to a recent analysis by the Orange County Register. The report found that employers in Los Angeles, Orange, Riverside, and San Bernardino Counties employed 714,900 workers last month, a decrease of 24,100 from the previous year. This represents a 3% drop in headcount, with self-employed workers not included in the count.
The real estate services sector was hit particularly hard, with a 2% decline in employment from last year. This sector includes companies involved in real estate services, lending, construction, building supplies, and building services. The number of workers in this field fell by 2,900 to 114,500 last month.
According to the report, the rise in interest rates is a major factor contributing to the decline in the real estate job market. As rates continue to climb, potential home buyers are being priced out of the market, resulting in a decrease in demand for homes and therefore a decrease in demand for real estate services and construction work.
"The rising interest rates are making homes less affordable, and that's going to impact the demand for homes and real estate jobs," said real estate analyst Tim Logan in an interview with The Real Deal.
While the job market for real estate and construction-related fields is contracting, other industries in Southern California are seeing growth. The healthcare and education sectors added 4,900 jobs in the past year, while the hospitality and tourism sector added 11,000 jobs.
Despite the decline in the real estate job market, experts remain hopeful that the trend will reverse in the coming months. "The market is still very strong, and I think