Monday, April 04, 2011

Ironic Economic Growth

A blurb I picked up from The Orange County Register about the rates for apartment rentals:

Noteworthy: Rebounding manufacturing job growth is tied to above-average rent growth in Detroit, Cleveland, Chicago, and Pittsburgh.

And, yah … Vegas was the only place for declining rent (down 3 percent.)

I don't fully understand the suggested connection between manufacturing job growth and above-average rent growth. Anybody reading this care to educate me? I'm skeptical that more manufacturing jobs are pushing up rent in Pittsburgh.


Anonymous said...

It's cribbed from what Greg Willett (the article's main source) was saying: “If there are any surprises emerging in metro-level results, they're coming in the Midwest and the Rust Belt, where rebounding manufacturing job growth is creating enough apartment demand to allow rents to rise faster than the national average.”

Jim Russell said...

Thanks for tracking down the source of the comment. But I still don't understand how rebounding manufacturing growth is driving up rents in Rust Belt cities. Are workers moving to Cleveland for manufacturing jobs also seeking apartments?