Southern California Real Estate Job Market Slows Down as Interest Rates Rise

Construction workers at Nova Power Bank in Menifee are hard at work despite a slowdown in hiring across the Southern California real estate industry. The latest data shows that property-linked employment in Los Angeles, Orange, Riverside, and San Bernardino counties only increased by 2,200 jobs in March 2024, which is 36% slower than the seasonal average.

In the last 12 months, real estate work in the region has grown by 7,400 positions, significantly below the average annual growth rate of 13,800 jobs since 2010. This year’s hiring pace is running 46% below par on an annual basis, with current real estate staffing 26,800 jobs below the most recent employment peak set in July 2022.

Despite the slowdown, real estate remains a significant player in the local job market, accounting for 9.5% of employment in March 2024. Across Southern California, employment in all other industries increased by 25,600 jobs in March, with a 1% gain over the past 12 months, equal to the growth rate in the real estate sector.

Key real estate-related employment niches in Southern California, including trade construction specialists, building and civil construction workers, lenders, real estate services professionals, building supplies sellers, and building services employees, have all seen varying levels of growth or decline in recent months.

Geographically, Los Angeles County has 361,300 real estate jobs, Orange County has 213,700, and the Inland Empire has 180,900. Despite the slowdown in hiring, construction workers at Nova Power Bank and other project sites continue to work diligently to push forward with their projects.

The industry’s hiring trends will be closely monitored in the coming months to see if the real estate market in Southern California can regain momentum and continue to drive economic growth in the region.