Gains in New Jobs Linked to Need for More Housing : Economics Group Head Says 250,000 Positions Opened in Five Counties in First Quarter This Year

New jobs created in five Southland counties last year set a record of 365,000--a one-year increase greater than the total of the previous five years, according to Robert Dunham, president of the Newport Economics Group, Newport Beach.

This year, estimated first quarter data indicate an annual gain of 250,000 new jobs over the first quarter of 1984, he added. While below the peak 1984 increase, the current gain is the highest since 1978.

Housing demand follows employment growth with an average ratio of 2.2 new jobs per dwelling unit, producing for 1985 a potential housing demand of 115,000 units. This level is down from the peak 170,000 last year, Dunham added.

“Real housing demand is often not reached due to high interest rates, lack of apartment construction or lack of truly affordable for-sale housing units,” he said.

Employment related housing demand is strongest in the largest county, Los Angeles, with an annual rate of 50,000 units, followed by Orange County with 27,000, San Diego with 21,000 and Riverside/San Bernardino counties with 17,000.

Strongest demand is for single-family houses, accounting for 75% of the total, with the balance for rental apartments, Dunham said. Fully 70% of the demand of for-sale housing is in the $125,000 and under price range, he added.