Housing is typically the locomotive that pulls the economy out of a recession. But this time around, it's taking up the rear.
Indeed, Housing Intelligence, the independent research firm, calls it "the caboose."
Now, the engine is employment, HI says. " The days of home building being a primary economic driver are behind us, and for housing to recover, job growth must lead the way."
To prove its point, the Contra Costa, Calif.-based company's latest report focused on the relationship between jobs and new home sales, looking at states which had at least 1,500 closings during the 2010's second quarter and ranking them according to their year-over-year gain and employment rate rankings.
The result is that the top eight states had a below average unemployment rate. "It's no coincidence that they saw a recovery in new home closing volume during the second quarter," HI reported.
Minnesota led the list with a 36% jump in closings, thanks in large part to an unemployment rate of just 6.8%. Maryland, with an unemployment rate of only 7.1%, saw a 20% gain in sales, as did Colorado, which had an unemployment rate of 8%.
Missouri was next with an unemployment rate of 9.2% and a 34% increase in new home closings. Oklahoma, with a 6.9% unemployment rate, had a 14% increase in closings. And Virginia, with a 7% unemployment rate, also had a 14% jump in closings.
Texas had a 15% bump in closed sales, while Washington had an 18% gain. The unemployment rate in those states was 8.2% and 8.9%, respectively.
