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Bud Zeller's Blog

By Bud Zeller | Broker in Placerville, CA

Will the housing rebound crush the job market?

For the past few years, economists have been waiting for the housing market to rebound so the job market can finally -- crash? Wait, no. It's the opposite. Right?

On Friday, we'll get the latest look at how the job market is doing. Hiring is improving, but the unemployment rate has stayed stubbornly high. The go-to explanation among economists has been the weak housing market. Where are all those construction workers going to find work? Nursing? (That's actually a pretty good idea.)

Housing prices are jumping again, and some people are even saying there's a new bubble.We've pointed out you shouldn't expect the economy to come roaring back just because the housing market is. But two economists are taking an even more extreme stance: that a good real estate market, where more people buy houses instead of rent, will throw more people out of work. 

Source: http://finance.fortune.cnn.com/2013/06/04/housing-rebound-jobs/?iid=HP_LN

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