Office job growth is correlated with demand for high-end apartments

Employment in high-salary jobs across markets is just one of many metrics CONTI tracks to determine where these best acquisition opportunities are. Many office-using jobs are generally paid well relative to other types of work, and so CONTI Capital keeps a finger on the pulse of employment performance in these sectors to foresee demand for high-end apartments across markets.

Office jobs span a wide variety of professions – not only professional and business services, but  software publishing, broadcasting, government, legal services, accounting and administrative work, to name a few.

Relocations for work do catalyze migration to and from markets, which CONTI also monitors, but the primary reason CONTI is interested in employment in office-using sectors is the relative level of pay they offer. Most office-using jobs require some college education, and with that prerequisite often come higher wages than those found in retail or food service. A sizeable slice of office workers earn enough salary to be able to afford higher rents at apartment properties situated in desirable locales and offering a bevy of amenities – the class of properties CONTI acquires for our funds.

Nationally, employment in office-using jobs increased 4.8% year-over-year in April 2022, according to data from the Bureau of Labor Statistics. In March 2020, as the COVID-19 pandemic took a big bite out of the labor market, total employment in the U.S. declined by 14% – but office-using employment only fell by 8%, since these workers were able to work while quarantining at home. Similarly, office-using employment recovered all lost jobs as early as July 2021, whereas total employment levels only just recovered in April 2022.