The hallmark of the American labor market, and consequently the wider economy, has long been the mobility of our work force.

From “going West” to “teleworking,” we go where the jobs are.

Unfortunately the uniquely disastrous state of the current housing market is changing all that.

One in four homeowners with a mortgage are now “underwater” on that mortgage; their home is worth less than their debt.

“Mobility deteriorates when you’re under water because you can’t get out from under the house without bringing money to the table,” says Mark Fleming, chief economist at CoreLogic. “So, it reduces mobility, which has an impact on the labor markets and the efficiency of labor markets in terms of people finding new jobs and people moving to where the jobs are located.”

Some borrowers, in good markets, can afford to rent out their homes and move to the new location. If the rent covers the mortgage payment, they can afford it, and many are doing just that. The trouble is, the bulk of those looking for new jobs are unemployed and likely behind on their mortgage payments already. For them, renting is probably not an option. Their last resort would be a short sale, where they negotiate with the bank to let them sell for less than the value of the loan, with the bank taking the hit.

That’s not as easy as it sounds.

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Article source: http://www.cnbc.com/id/43238517?__source=RSS*blog*&par=RSS

One piece of data does not a conclusion make…two pieces get closer. A new report on the apartment market out today from Reis, Inc [ REIS 35.00  +27.165 (+346.71%) ]. shows a big surge in net absorptions, despite very little new supply of apartment units. Apartment vacancies dropped 40 basis points to 6.2 percent, which is a record plunge.

Rents are rising steadily, but the renters keep coming.

“We are now seeing the results of a sharp convergence of positive factors for apartment rentals. First, as labor markets continue to improve and hiring picks up, demand for housing is increasing, particularly in the 20 to 34 year segment of the labor market,” notes Reis’ Victor Canalog. “However, with the single family home sales market still on the ropes, and with deflationary expectations for home prices for at least the coming year, few of these newly hired young workers have the appetite to commit to buying a home.”

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Article source: http://www.cnbc.com/id/42453929?__source=RSS*blog*&par=RSS

One piece of data does not a conclusion make…two pieces get closer. A new report on the apartment market out today from Reis, Inc [ REIS 7.80  +0.05 (+0.65%) ]. shows a big surge in net absorptions, despite very little new supply of apartment units. Apartment vacancies dropped 40 basis points to 6.2 percent, which is a record plunge.

Rents are rising steadily, but the renters keep coming.

“We are now seeing the results of a sharp convergence of positive factors for apartment rentals. First, as labor markets continue to improve and hiring picks up, demand for housing is increasing, particularly in the 20 to 34 year segment of the labor market,” notes Reis’ Victor Canalog. “However, with the single family home sales market still on the ropes, and with deflationary expectations for home prices for at least the coming year, few of these newly hired young workers have the appetite to commit to buying a home.”

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Article source: http://www.cnbc.com/id/42453929?__source=RSS*blog*&par=RSS