According to a recent report released by the Bureau of Labor Statistics, the unemployment rate across the country decreased slightly in August, leaving many concerned about how the slow growth of the job market will affect the growing rental sector.
The Bureau reported that the unemployement rate edged down to 8.1 percent, while nonfarm payroll employment rose by 96,000. Despite the growth, a slow job market might cause renters to push back against high rental rates and slow the growth of the apartment sector.
In a later release, the Bureau reported higher unemployment claims across the country. According to the release, the seasonally adjusted number of initial claims of unemployment was 382,000, or 15,000 more than the previous week.
According to Marcus & Millichap vice president John Sebree, the apartment market will continue to grow despite high unemployment. In an interview with World Property Channel, Sebree stated that the current high apartment occupancy rate will encourage development, which will in turn support the market.
Rental property managers and landlords dealing with high unemployment rates in their surrounding areas can combat vacancies in their properties is to use strenuous marketing techniques and extensive tenant background checks.