Research Brief: Employment – October 2018

Unemployment continues to decline, including for those with a degree. The number of unemployed people in the U.S. fell by 270,000 last month to just under 6 million. The last time fewer people looked for work was in December 2000. Last month’s job growth pushed down the unemployment rate 20 basis points to 3.7 percent from the previous month. For those with a four-year college degree, the rate dropped 10 basis points to 2.0 percent, its lowest level since 2007.

Extremely low unemployment among the college-educated bolsters high-end apartment demand. The growth of jobs requiring a college education typically bodes well for multifamily properties, particularly higher-quality Class A and B apartments. Over the past two decades when the unemployment rate for those with college degrees fell to this month’s level, the vacancy rate for Class A apartments also tended to drop below 5 percent. This trend occurred again in the third quarter as vacancy for Class A apartments slid to 4.7 percent in September, a five-year low.

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