Top 10 markets for multifamily pay and for job growth

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making money

The Census Bureau released the 2016 County Business Patterns (CBP) report on April 19. Using data from this report and from the 2015 CBP report allowed us to identify the metro areas with the highest pay and job growth. And the lowest.

The CBP report was described in an earlier blog post. In order to arrive at a measure of total employment, we added together the employment numbers for two categories of businesses that cover the multifamily industry: Lessors of residential buildings and dwellings, and Residential property managers. The former category includes owners and owner/operators while the latter category includes companies which manage residential property for others.

To calculate the job growth rate, we subtracted the total number of people employed by business establishments in the two categories of multifamily housing providers in 2015 from the number reported for 2016. We then expressed the result as the percent change relative to the 2015 value.

We looked at the 50 metro areas with the largest number of people employed in multifamily housing and sorted them to find the 10 metro areas with the highest rates of job growth and also the 10 metro areas with the lowest rates of job growth. As it happens, the latter group actually lost jobs. The results are displayed in the next two tables:

Top ten metro areas for multifamily job growth

Size rank Metro area Job growth – percent
26 Columbus, OH Metro Area 11.72
5 Miami-Fort Lauderdale-West Palm Beach, FL Metro Area 11.32
45 New Orleans-Metairie, LA Metro Area 11.23
48 Urban Honolulu, HI Metro Area 9.79
21 Denver-Aurora-Lakewood, CO Metro Area 9.31
8 Atlanta-Sandy Springs-Roswell, GA Metro Area 8.56
27 Indianapolis-Carmel-Anderson, IN Metro Area 8.56
34 Charlotte-Concord-Gastonia, NC-SC Metro Area 8.38
35 San Antonio-New Braunfels, TX Metro Area 8.13
12 Minneapolis-St. Paul-Bloomington, MN-WI Metro Area 7.98

 

Bottom 10 markets for multifamily job growth

Size rank Metro area Job growth – percent
31 Kansas City, MO-KS Metro Area -6.62
24 Tampa-St. Petersburg-Clearwater, FL Metro Area -6.15
50 Louisville/Jefferson County, KY-IN Metro Area -4.36
28 St. Louis, MO-IL Metro Area -4.12
29 Sacramento–Roseville–Arden-Arcade, CA Metro Area -3.85
4 Dallas-Fort Worth-Arlington, TX Metro Area -3.55
32 San Jose-Sunnyvale-Santa Clara, CA Metro Area -3.26
15 Detroit-Warren-Dearborn, MI Metro Area -2.28
37 Milwaukee-Waukesha-West Allis, WI Metro Area -2.20
39 Pittsburgh, PA Metro Area -1.94

 

The CBP report included information on the total payroll and total number of employees for the businesses in the two multifamily housing categories. Dividing these two numbers yields the number of payroll dollars per employee, a proxy for employee pay. We then sorted our 50 metro areas to find the 10 with the highest payroll dollars per employee and also the 10 with the lowest payroll dollars per employee. The results are shown in the following tables:

Top ten metros for payroll per multifamily employee

Size rank Metro area Payroll per employee
7 San Francisco-Oakland-Hayward, CA Metro Area 56.52
10 Boston-Cambridge-Newton, MA-NH Metro Area 54.51
3 Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Area 54.02
18 Cleveland-Elyria, OH Metro Area 52.22
6 Chicago-Naperville-Elgin, IL-IN-WI Metro Area 50.23
32 San Jose-Sunnyvale-Santa Clara, CA Metro Area 50.11
22 Austin-Round Rock, TX Metro Area 48.91
1 New York-Newark-Jersey City, NY-NJ-PA Metro Area 48.05
8 Atlanta-Sandy Springs-Roswell, GA Metro Area 47.96
11 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area 47.35

 

Bottom ten metros for payroll per multifamily employee

Size rank Metro area Payroll per employee
46 Oklahoma City, OK Metro Area 29.89
45 New Orleans-Metairie, LA Metro Area 33.03
37 Milwaukee-Waukesha-West Allis, WI Metro Area 33.45
47 Tucson, AZ Metro Area 33.51
28 St. Louis, MO-IL Metro Area 33.74
49 Buffalo-Cheektowaga-Niagara Falls, NY Metro Area 33.98
36 Rochester, NY Metro Area 34.88
12 Minneapolis-St. Paul-Bloomington, MN-WI Metro Area 34.90
31 Kansas City, MO-KS Metro Area 35.58
17 Portland-Vancouver-Hillsboro, OR-WA Metro Area 35.83