Monday, December 17, 2007

Home Values and Employment 1976-2000

Most commentators on housing prices recognize the relationship between employment and residential real estate appreciation. Here is a chart which shows this relationship:
Note changes in home values (as indicated by changes in OFHEO's Housing Price Index) and changes in employment (as reported by the Bureau of Labor Statistics) move in the same direction until 2000. More on 2000 - 2007 in a separate post.