Realty Check

Stellar jobs report is downer for housing

David Paul Morris | Bloomberg | Getty Images

Employment is good for housing. No question. But it is just not as simple as that when it comes to today's unique housing recovery. This recovery needs more construction, more jobs for younger Americans, and more credit. Friday's October jobs report provided none of that.

Employment among 25- to 34-year-olds, considered the prime age for housing demand, fell from 75 percent in September to 74.6 percent in October, according to the Bureau of Labor Statistics. It is still well below pre-recession levels.

First-time home buyers, usually younger Americans, have been largely left out of this recovery, buying at far lower rates than normal. Not only are they un- or underemployed, they are saddled with student loan debt and lacking the credit to qualify for today's lowest mortgage rates.

(Read more: Shutdown slowdown? Job creation soars in October)

Construction didn't do so well either. Residential construction jobs increased by 4,800 in October, month-to-month, and are up by 14,000 from three months ago. Still that three-month gain is the smallest increase in 12 months, and residential construction employment remains low by historical standards.