Monday, January 9, 2012
JOBS ATTRACT HOUSEHOLDS
As an economic base grows, so does the demand for employees. In a growing economic region, the rate of economic growth exceeds the rate of natural increase, necessitating immigration. The demand for employees in excess of supply leads to rising wages, which then attracts households from other metropolitan regions. As the number of households rise, the vacancy rate of available housing (rented and owned) falls, and the rising value of property/rents stimulates new construction. (This relationship characterizes one of the virtuous cycles that helps power economic development in growing metropolitan regions).