Construction employers are getting an overwhelming number of signals that demand will be strong for the foreseeable future, and they’re hiring in earnest to make sure they will be able to meet it.
Pasadena, CA (PRWEB) June 07, 2013
Home prices leaped to their highest gains in seven years, according to recent data released by the S&P/Case-Shiller index. Construction firms have responded by increasing building efforts and ramping up hiring on job site Hound.com.
Home prices had their biggest gains in over seven years, with the S&P/Case-Shiller Home Price Indices showing double-digit increases in all 20 cities measured. The cities of Los Angeles, Seattle, Portland, Charlotte, and Tampa showed the biggest gains. The price jumps came in the midst of a strengthening labor market, low inventory, a decline in distressed or foreclosed homes, and burgeoning consumer confidence. In spite of consistent increases in new residential building, the construction sector has been unable to keep up pace with consumer demand, and the low supply of available homes has pushed prices upward. The new homes being built are often larger multi-bedroom units with more amenities, which has contributed to the price gains. The resilience of the housing recovery over the past few months has stifled initial fears that government cutbacks and payroll tax increases would put a dent in consumer spending.
The biggest benefactor of the housing recovery has been the construction sector. While most economists expect the increase in housing inventory to have a moderating effect on home prices, the currently low number of available homes on the market has not been due to lack of effort. The timeline from when a building permit is submitted, construction begins and is completed, and the house finally goes on the market is a long process, often stretching across at least 7 months.
Employers have ramped up hiring, as most firms have been inundated with work beyond current staffing capabilities. The recent home price gains have spurred hiring, as firms anticipate the continued recovery of the market and further production demand. Employment trends on job search site Hound.com have reflected consistent hiring in the sector, with over 4,200 construction openings listed as of the time this release was written. By and large, the majority of the demand has been at the management-level, with firms seeking supervisors who can oversee construction projects.
“It is always difficult for businesses to determine if future business will be great enough to warrant hiring,” said Harrison Barnes, CEO of Hound.com. “Most companies will rely on a combination of current business and workload, along with a variety of market ‘signals,’ to project future demand. Right now, nearly all construction employers are getting an overwhelming number of signals that demand will be strong for the foreseeable future, and they’re hiring in earnest to make sure they will be able to meet it.”
Hound.com is a job search site based in Pasadena, CA. It is a part of the Employment Research Institute and owned by A. Harrison Barnes.