|
Economic Analysis 19
<br />Commercial Land Site - SWC of Middle Street and Market Place Drive
<br />
<br />Moody’s summarizes the area’s economic performance in recent months as follows:
<br />Recent Performance
<br />Usually among the top Midwest performers, Minneapolis-St. Paul-Bloomington has slid toward
<br />the bottom of the rankings. Nonfarm employment growth decelerated more than in most large
<br />population centers in 2019. Worker shortages have kept a lid on job creation. The unemployment
<br />rate has been hovering around 3% for several quarters. Wage growth has accelerated as a result,
<br />judging by average hourly earnings and the Employment Cost Index. The housing market remains
<br />in good shape. House price appreciation is above the national average and single-family
<br />permitting has strengthened in the past several months. Builders put up more multifamily units
<br />in 2019 than in any year since the mid-1980s.
<br />Market Comparison
<br />The following table illustrates key economic indicators and a comparison of the Minneapolis MSA
<br />to the regional grouping as a whole. As indicated, Minneapolis is projected to outperform the
<br />National Region Metros in three of eight performance categories shown over the next five years.
<br />
<br />2013 2014 2015 2016 2017 2018 INDICATORS 2019 2020 2021 2022 2023 2024
<br />207.1 214.9 218.7 222.7 226.9 233.5 Gross metro product (C12$ bil) 236.9 242.9 249.5 258.5 266.3 273.7
<br />2.1 3.7 1.8 1.9 1.9 2.9 % change 1.4 2.5 2.7 3.6 3.0 2.8
<br />1,859.6 1,894.0 1,928.2 1,960.5 1,991.0 2,012.4 Total employment (ths) 2,010.6 2,025.8 2,042.5 2,057.4 2,068.8 2,079.9
<br />2.1 1.8 1.8 1.7 1.6 1.1 % change -0.1 0.8 0.8 0.7 0.6 0.5
<br />4.8 3.9 3.4 3.5 3.1 2.7 Unemployment rate (%) 3.0 2.6 2.4 2.7 2.8 3.0
<br />1.0 6.8 5.3 3.4 4.3 5.8 Personal income growth (%) 3.9 3.5 3.7 4.4 4.2 4.1
<br />67.3 69.1 71.1 73.7 76.6 79.6 Median household income ($ ths) 81.9 84.0 85.8 88.0 90.2 92.3
<br />3,456.0 3,491.3 3,519.2 3,554.3 3,591.4 3,626.0 Population (ths) 3,657.4 3,690.7 3,723.3 3,757.0 3,790.5 3,823.8
<br />1.0 1.0 0.8 1.0 1.0 1.0 % change 0.9 0.9 0.9 0.9 0.9 0.9
<br />11.7 11.6 5.6 12.6 16.2 14.5 Net migration (ths) 11.2 12.6 11.8 13.3 13.5 13.8
<br />7,262 6,689 6,770 7,889 8,782 8,985 Single-family permits (#) 9,919 9,816 10,679 13,695 15,068 15,838
<br />4,865 4,736 4,903 6,271 6,318 9,221 Multifamily permits (#) 12,616 5,065 3,173 3,127 3,268 3,416
<br />184 195 203 214 229 246 FHFA house price (1995Q1=100) 256 266 275 282 288 294
<br />Source: Moody's Analytics Précis® US Metro
<br />Moody's Analytics Précis® Metro Indicators: Minneapolis MSA
<br />Indicator 2014 2019 2024 2014 - 2019 2019 - 2024 2014 2019 2024 2014 - 2019 2019 - 2024
<br />Gross metro product (C12$ bil) 214.9 236.9 273.7 2.0% 2.9% 16,912 19,066 21,255 2.4% 2.2%
<br />Total employment (ths) 1,894.0 2,010.6 2,079.9 1.2% 0.7% 138,941 151,369 155,857 1.7% 0.6%
<br />Unemployment rate (%) 3.9% 3.0% 3.0% 6.2% 3.7% 4.5%
<br />Personal income growth (%) 6.8% 3.9% 4.1% 5.7% 4.8% 4.0%
<br />Population (ths) 3,491.3 3,657.4 3,823.8 0.9% 0.9% 318,386 329,248 339,595 0.7% 0.6%
<br />Single-family permits (#) 6,689 9,919 15,838 8.2% 9.8% 646,250 868,357 1,484,159 6.1% 11.3%
<br />Multifamily permits (#) 4,736 12,616 3,416 21.6% -23.0% 354,000 393,066 452,558 2.1% 2.9%
<br />FHFA house price (1995Q1=100) 195 256 294 5.6% 2.8% N/A N/A N/A N/A N/A
<br />Minneapolis MSA outperforming National Region Metros
<br />Minneapolis MSA underperforming National Region Metros
<br />Source: Moody's Analytics Précis® US Metro; Compiled by NKF
<br />Minneapolis MSA Annual Growth National
<br />Comparison of Key Economic Indicators - Minneapolis MSA Metro to National Region
<br />Annual Growth
|