In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses personal income.
- Aggregate rental income continued to make solid gains, with a 12.7 percent jump from one year prior (February). Wages and salaries were up by a much more modest 2.7 percent.
- Income from unemployment insurance has been falling sharply as more jobs are created and fewer people meet the eligibility requirements.
- Both farm income and proprietors’ income are at record highs.
- Despite the movement in the right direction on income, the total personal income gain of 2.6 percent from one year ago, if continued for the remainder of the year, would be the second slowest annual gain in the past ten years. The disposable personal income per capita is barely growing.
- The latest savings rate of 2.6 percent is near historic lows. The rising stock market and home values have made consumers more comfortable spending most of their paycheck knowing that asset appreciation is doing the savings for them.
- Still, steadily rising income helps employment growth, which in turn, boosts overall income. This positive feedback and cycles will continue. Demand for home purchases and commercial property spaces will be rising as a result.