Southern California’s real estate bosses seemingly ignored pricey mortgage rates in June, hiring at a pace that was 55% faster than the seasonal norm.
My trusty spreadsheet found property-linked employment in Los Angeles, Orange, Riverside, San Bernardino and San Diego counties was 917,500 in June 2024 – up 6,500 for the month. In pre-pandemic 2015-19, 4,200 jobs were added in June on average.
Still, hiring is cooling, as expected, while the Federal Reserve continues to throttle an overheated economy with high interest rates. Real estate work grew locally by 7,400 positions in the past year – an 0.8% increase – compared with a 12-month hiring pace averaging 17,100 since the Great Recession. That’s 57% less.
Also consider that June’s job count is 13,600 jobs below the post 2009-employment peak set in July 2022. The Fed’s rate hikes began four months earlier.
We’ll note that many people who work in the real estate world are self-employed and are not tracked by traditional government job counts.
Outside of real estate, hiring remains brisk in Southern California. Non-real estate bosses had 8.67 million workers in June – up 19,300 jobs in a month. Over 12 months, those jobs are up 116,400 over 12 months, or a 1.4% gain – almost twice real estate’s pace.
Don’t overlook real estate’s job-market clout. It’s share of five-county employment was 9.6% in June 2024. The industry’s hiring equaled 25% of all new local jobs for the month, 6% for the year, and 12% since 2010.
Here’s how key real estate-related employment niches in Southern California fared in June …
Trade construction specialists: 314,800 employed by contractors – up 2,500 for the month and up 800 over 12 months, or a 0.3% gain. The average June in 2015-19 had 3,140 hires. It’s 4,900 below post-Great Recession high (October 2023).
Project construction: A record 153,900 workers building everything from homes to highways – a post-Great-Recession high – up 1,900 for the month and up 2,600 over 12 months, or a 1.7% gain. Average June had 1,140 hires.
Lending: 103,900 folks in various slices of credit work – up 300 for the month and down 3,600 over 12 months, or a 3.3% drop. Average June had a 320 job loss. It’s 41,000 below post-Great Recession high (December 2012).
Real estate services: 142,300 people handling transactions – off 200 for the month and up 500 over 12 months, or a 0.4% gain. Average June had 120 hires. It’s 4,900 below post-Great Recession high (December 2022).
Building supplies: 63,700 sellers of equipment and materials – up 900 for the month and up 1,300 over 12 months, or a 2.1% gain. Average June had a 220 job loss. It’s 3,900 below post-Great Recession high (June 2021).
Building services: A record 138,900 jobs in commercial property operations – another post-Great-Recession high – up 1,100 for the month and up 5,800 over 12 months, or a 4.4% gain. Average June had 340 hires.
Here is real estate employment’s breakdown, by metro area …
Los Angeles County: 347,000 real estate jobs – up 2,200 for the month and up 1,700 over 12 months, or a 0.5% one-year gain. An average June in 2015-19 had 1,200 hires. Jobs are -8,400 below post-Great Recession high (February 2020). Real estate equals 7.5% of all LA jobs.
Orange County: 217,600 real estate jobs – up 1,400 for the month and up 2,000 over 12 months, or a 0.9% one-year gain. The average June had 1,100 hires. Jobs are 12,800 below post-Great Recession high (August 2018). Real estate equals 12.7% of all OC jobs.
Inland Empire: 183,800 real estate jobs – up 1,800 for the month and up 1,400 over 12 months, or a 0.8% one-year gain. The average June had 1,300 hires. Jobs are 2,300 below post-Great Recession high (October 2023). Real estate equals 10.8% of all IE jobs.
San Diego County: 169,100 real estate jobs – up 1,100 for the month and up 2,300 over 12 months, or a 1.4% one-year gain. The average June had 1,000 hires. Jobs are 300 below post-Great Recession high (July 2022). Real estate equals 10.8% of all SD jobs.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
