Article originally found on Money.com
A buyer looking to make a smart long-term bet in today’s volatile housing market should follow the jobs, according to a new report. That may mean avoiding cities too heavily reliant on a single industry for jobs and seeking out those with more diversified economies.
The research, from Unison, a San Francisco-company that co-invests with homeowners in 30 states, contends owner-occupied housing will recover slowest in areas with heavy job losses. The most vulnerable of the 20 cities analyzed? Las Vegas, Miami and Detroit because employment in those places is heavily concentrated in one or two hard-hit industries.
“Wages drive home prices. More people making more money means more demand for homes,” says Unison Chief Executive Thomas Sponholtz. “You have to ask: ‘How diversified is the demand side for housing in a certain market?”