The real estate sector in Southern California has seen remarkable job growth, adding 10,200 positions in October alone, defying expectations in a period of elevated interest rates. The increase represents a 139 percent surge compared to the pre-pandemic seasonal average, according to a report from the Orange County Register.
Employment within property-related sectors in Los Angeles, Orange, Riverside and San Bernardino counties reached a new high post-Great Recession, tallying 805,200 jobs in October 2023. Over the preceding year, the industry experienced a notable upswing, adding 16,300 positions, equating to a 2.1 percent expansion.
Despite the prevailing high-interest rates, which have notably impacted residential transactions and the feasibility of certain real estate ventures, the industry has sustained growth. The construction sector remains buoyant, supported by substantial infrastructure projects, contributing to the overall stability in property-linked employment.
Moreover, Southern California’s job market in all industries, excluding real estate, reached a post-recession peak, indicating a broader economic resurgence. With 7.3 million individuals employed across various sectors, the region saw an increase of 88,200 jobs in a month and 118,100 jobs over the past year, marking a 1.6 percent increase.
Key sectors within the real estate industry witnessed diverse performances in October, with those in building and construction trades seeing an increase of 2.1 percent in employment. Trade construction specialists saw 267,000 individuals employed during the same time for a 3.2 percent increase. Lending saw a slight gain in employment by about one percent.
Other groups, however, including those in real estate services and building supplies, saw a slight drop in employment, according to the report. Real estate services saw a marginal decline of 0.2 percent in employment over the past year, while building supplies saw a drop of 1.3 percent in jobs over the year.
The Inland Empire was the area that saw the largest growth in employment, according to the report. The area saw a 4.2 percent gain, adding 4,100 jobs over the course of 12 months. Likewise, Los Angeles County added 3,300 jobs, resulting in a 1.8 percent gain over the past year. Orange County saw the least amount of gain at 0.7 percent and 2,800 jobs added over the year.
The resilience and expansion of the real estate job market in Southern California amidst challenging financial conditions highlight the sector’s enduring strength and its substantial contribution to the region’s overall economic vitality.
