Dive Brief:
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Personal finance and credit report company WalletHub ranked the 150 most populous cities nationwide in terms of job-market strength. Scottsdale, AZ, took the top spot for the most job-market potential while Detroit came in last.
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The ranking evaluated cities on a variety of factors including median annual income, job opportunities and employment growth.
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Scottsdale was followed by Plano, TX, Orlando, FL, Sioux Falls, SD, and San Francisco rounding out the top five spots. Fresno, CA, Bakersfield, CA, Newark, NJ, and Buffalo, NY, joined Detroit at the bottom of the list.
Dive Insight:
The jobs report by WalletHub highlights areas of the country where a strong labor market is drawing residents, putting pressure on already-strained housing supplies.
San Francisco, for example, ranked fifth on the list and is currently undergoing a major housing crisis as the population there rises and housing inventory lags demand. The city was recently named as one of the least affordable for housing, with a median home value of $800,000 compared to the area’s median income of $81,000, according to a report by Overflow Data.
City officials are looking at initiatives to help close the affordable housing gap. This past sumer, San Francisco voters approved a ballot measure requiring residential developments with 25 units or more to offer 25% of those slots at below-market rates, up from the previous requirement of 12%.
Other cities that ranked quite highly for job strength that are currently experiencing a surge in housing demand include Dallas and Austin, TX, and Washington, DC, coming in 21st, 22nd and 23rd, respectively, on WalletHub's list.
In DC, for example, the increase is driven by job growth and household formations and as such is fueling a residential construction boom, with the supply of residential properties exceeding 10,000 units for two of the last three years, according to a third-quarter report from real estate development firm Marcus and Millchap, while rents have risen and vacancies have been reduced.
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