Happy 4th of July to all. Safe travels to those 41.9 million American’s on the road, in the water or up in the air this three-day weekend.
Now imagine the impact on real estate in the Leisure and Hospitality sector from restaurants, hotels, golf courses, resorts, sports to the arts and entertainment. Throw in museums, amusement and water parks, gambling and historical sites, and the myriad uses of real estate are apparent.
Today, the Leisure and Hospitality sector is home to more than one-out-of-every 10 jobs in the country. The vast expanse of the Travel and Leisure segment is readily seen in the classifications included by the U.S. Bureau of Labor Statistics as follows:
Employment growth in the Leisure and Hospitality segment for the 12 months ending June 2015 was 2.89 percent compared to 2.11 percent for the U.S. The last time the Leisure and Hospitality segment underperformed total U.S. employment growth on a 12-month basis was July 2010. At that time one out of every 10 jobs in the U.S. was in the Leisure and Hospitality segment. Today that has increased to one out of every 9.2 jobs.
The following graph shows the total number of jobs in the Leisure and Hospitality segment (millions) commencing January 2000.
Leisure and Hospitality, which represented 8.94 percent of all U.S. jobs in January 2000, increased by 19.25 percent, now tallying 10.66 percent of total U.S. employment. No doubt an industry that today includes one out of every 9.2 jobs is also a top-10 user of real estate. Good news for the travel and entertainment segment of real estate, that economic landscape is growing.
Jobs are everything. Want to find out where demand is heading for types of real estate in specific locations? To find out the numbers of jobs in the U.S. in these segments, click http://data.bls.gov/pdq/querytool.jsp?survey=ce. Once there, see the following screen shot. In Boxes 2 and 3 pick which Super Sector and Industries are desired. I prefer to use seasonally-adjusted data, but if you wish to view the cycle of jobs from low to high season select Not Seasonally Adjusted under Box 4.
Wish to see the same data for states and Metropolitan Statistical Areas (MSAs)? Click http://data.bls.gov/pdq/querytool.jsp?survey=sm. A screen shot follows.
Be aware, however, that not all states or MSAs report each and every one of segments either as Seasonal or Not Seasonally-Adjusted.
And good luck finding a great hotel rate this summer. Given cheaper gasoline, you may even celebrate just finding a room.
Safe travels.
Ted