Improving Markets Index: Grand Junction, CO MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the ninth release 80 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Grand Junction, Colorado metropolitan statistical area (MSA).

The health of the Grand Junction housing market is due to its diversification away from just oil and gas following the oil shale bust of 1982, strong growth at Mesa State University, a large number of state employees, and, being the largest city between Salt Lake City and Denver, its position as a very large regional healthcare center.  The rise of the healthcare industry can be seen by the recent additions at both St. Mary’s Hospital and Community Hospital.  Grand Junction also offers abundant outdoor activities, spectacular scenery, top-notch recreational opportunities and is a major mountain biking destination and also has a number of nearby ski resorts and vineyards.  As such, tourism and retirees are also fueling the local economy.      

According to home builder Nate Porter, President and owner of Porter Homes LLC, “the continued expansion of the healthcare industry, and the growing importance of tourism have collectively shielded the community from the worst of the recession and the recent decline in gas prices.  As for the building industry, we have been holding our own due to an influx of retirees and Gen X-ers attracted to Grand Junction for its high quality healthcare, abundant and well paying healthcare jobs, and quality of life (biking, hiking, fishing and skiing).”  Mr. Porter went on to say that “many home buyers realize that it is cheaper to buy an energy efficient green home rather than a foreclosure and that attitude translates into demand for new homes as there are only a limited number such houses available.  Collectively because of all these diverse forces, construction activity is slowly rebounding.”          

Comparing 2010 American Community Survey data for Grand Junction to the US offers strong evidence that Grand Junction is doing well and insight into why.  The percentage of persons with some college but no degree is 23.0% higher than in the rest of the country and the percentage with a bachelor’s degree is 18.4% higher than it is everywhere else.  In addition, the percentages of persons employed in educational services, healthcare and social assistance and in the arts, entertainment and recreation industries are 17.2% and 10.9% higher respectively than the national average.  Lastly, the percentage of owner-occupied units stands at 72.5% versus 65.4% for the nation and the number of vacant housing units, be they owner-occupied units or rental units, is just 8.6% in Grand Junction compared to 13.1% elsewhere.          

According to Rich Buffington, an associate board member of the Home Builders Association of Northwestern Colorado, “Grand Junction is perking up because things always improve and we are more accustomed to cycles because of the role energy plays in our economy.  In addition, many folks who used to work in the oil and gas industry here, now work in the Bakken shale in North Dakota but continue to live here with the same being true for many subcontractors.  As such, the local economy is much healthier than would otherwise be the case.  In addition, education, healthcare and the continued influx of retirees are also part of the reason for the turnaround in our economy local economy.”  Whatever the cause, house prices are definitely on the mend.  Prices are up 0.7% since the trough in July 2011 and appear on track to continue to increase in the days ahead.        

Improving economic conditions have resulted in payroll employment being down less than 10% from its peak in August 2008, and up by 3.4% since the trough in January 2010.  Single family permitting activity is up 6.2% on a seasonally adjusted monthly average basis from the trough set in June 2011.  While new homes are being built in many parts of the Grand Junction MSA, activity is currently centered northwest of Grand Junction in the City of Fruita, west of Grand Junction, in the Redlands, and in the “northwest.” 

Improving Markets Index: Bloomington, IN MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the eighth release 100 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Bloomington, Indiana metropolitan statistical area (MSA).

The health of the Bloomington housing market is due to its position as a very large regional healthcare center and the Indiana University and all of its research facilities and associated high-tech firms.    Bloomington is also home to a large Baxter Pharmaceuticals facility and is headquarters to the Cook Group Incorporated, a company primarily involved in manufacturing of medical devices.  As a result, Bloomington’s concentration of employment in the life sciences and medical devices is many times greater than the U.S. average and has been growing rapidly in recent years.  

According to home builder Aaron Stolberg, President and Owner of WS Homes, Inc., “the continued expansion of the University and the growing importance of healthcare and medical devices have collectively shielded the community from the worst of the recession.  As for the building industry, we have been doing better of later due to construction lending being extended by smaller local banks.”  He went on to say that “another reason activity is up is because more than half of all buyers are retires and almost as many are from out of town.  Lastly, pent-up demand from buyers who were on the fence just a few months ago is finally materializing because of an improving economy and a rise in exports.  As a result of these different forces, construction activity is slowly and steadily improving.”          

Comparing 2010 American Community Survey data for Bloomington to the US offers strong evidence that Bloomington is doing well and some insight into why.  The percentage of persons with a graduate or professional degree is 43% higher than in the rest of the country and the median age is almost 16% lower in Bloomington than it is everywhere else.  In addition, the percentages of persons employed in educational services, healthcare the social assistance industry and in the arts, entertainment and recreation industry are 48% and 35% higher respectively than the national average.  Lastly, the percentage of owner-occupied units stands at 73.4% versus 65.4% for the nation and the number of homeowners with a mortgage is just 65.1% in Bloomington, compared to 67.2% elsewhere.          

According to John Bethell, President of the John Bethell Title Company, “Bloomington is doing better than many places because retirees continue to move here, despite the poor economy, due to the close proximity to Indianapolis, the University and all it has to offer the generally low tax rates.  In addition, the anticipated construction of I-69 is already an economic boon to the entire community and the Westside in particular. It is already transforming the area and residential and commercial construction activity is heating up.”  Whatever the cause, house prices are definitely on the mend.  Prices are up 9.1% since the trough in January 2011 and down just fourth-tenths-of-one-percent from their peak set in July 2007.        

Improving economic conditions have resulted in payroll employment being down less than 8% from its peak in August 2008, and up by 1.3% since the trough in December 2008.  Single family permitting activity is up 19.9% on a seasonally adjusted monthly average basis from the trough set in September 2011.  While new homes are being built in many parts of the Bloomington MSA, activity is currently centered in preapproved subdivisions in the City of Bloomington, northwest of Bloomington in the Town of Ellettsville and the west side of town where I-69 is being built.  

Improving Markets Index: Cumberland, MD-WV MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the eighth release 100 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Cumberland, Maryland–West Virginia metropolitan statistical area (MSA).

The health of the Cumberland housing market is due to its position as a very large regional healthcare center, the presence of Frostburg State University and Allegany College of Maryland, the CSX Locomotive Maintenance Facility and the presence of several prisons including a new maximum security prison.  Cumberland also benefits from several large call centers and the very large Hunter-Douglas fabrication plant where custom energy efficient window treatments are made.  

According to home builder Steve MacGray, General Manager of Foxcraft Homes, Inc., “the continued growth of healthcare, the fact that Cumberland is; a safe place to raise kids, somewhere where you can easily enjoy small-town living, has a lively and growing arts scene, and is where you can enjoy the great outdoors, through the many parks and great fishing opportunities, continues to draw people here.”  He went on to say that “about 50% of purchasers are move-up buyers while another 25% are retirees, and that both groups are also drawn here because of our affordability and close proximity to Baltimore, Pittsburgh, Philadelphia and Washington, D.C.  As a result of these different buyers, construction activity is slowly and steadily picking up steam.”          

Comparing 2010 American Community Survey data for Cumberland to the US offers strong evidence that Cumberland is doing well and some insight into why.  The unemployment rate is almost 10 percent lower in Cumberland than in the rest of the country.  In addition, the percentages of persons employed in natural resources, construction and maintenance occupations and in production, transportation and material moving occupations are 50% and 33% higher respectively than the national average.  Lastly, the percentage of owner-occupied units stands at 73.4% versus 65.4% for the nation and the number of homeowners with a mortgage is just 58.8% in Cumberland, compared to 67.2% elsewhere.          

According to Mike Hershberger, Outside Salesman for 84 Lumber, “Cumberland is doing better than many places because of the presence of credit unions.  While we have big banks, most construction loans are being made by the local credit unions.  Because the credit unions know the borrowers well and have more discretion, they can confidently make loans that banks would not.  In addition, the presence of the ATK Allegany Ballistics Laboratory in Rocket Center, WV is very important to our community as it brings people here.”  Whatever the cause, house prices are definitely on the mend.  Prices are up 1.8% since the trough in January 2011 and down just 12.8% from their peak set in December 2007.      

Improving economic conditions have resulted in payroll employment being down less than 1% from its peak in December 2011, and up by 5.6% since the trough in February 2010.  Single family permitting activity is up 1.6 % on a seasonally adjusted monthly average basis from the trough set in May 2010.  While new homes are being built in many parts of the Cumberland MSA, activity is now primarily centered in Mineral County, WV because buyers can get the same house there as in Allegany County, MD but for $5,000 to $10,000 less due to simpler building codes and lower taxes.

Improving Markets Index: Boise, ID MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the seventh release 101 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Boise, Idaho metropolitan statistical area (MSA).

The health of the Boise housing market is due to its position as a large regional healthcare center, the presence of Boise State University, the large Federal government presence and its role as the state capital and thus the large number of state government workers.   Boise is also the headquarters for Boise Cascade, Albertsons, J.R. Simplot and several other major companies.  Finally, there is a large high-tech presence in Boise anchored by the headquarters of Micron Technologies with other firms like Hewlett-Packard, Sybase, Microsoft, having sizable facilities in town.    

According to home builder Bobbie Schultz, Owner of Jordan Homes LLC, “the combination of a pick-up in manufacturing activity, the continued growth of healthcare, and people generally feeling that the worst is over is causing people to buy rather than continuing to wait.”  She went on to say that “because inventory is very low and there is little to choose from, when retirees move here or when a local family wants more space more often than not they wind up building a new house.  As a result of these different buyers, construction activity is picking up both at the low end of the market and at the high end.”        

Comparing 2010 American Community Survey data for Boise to the US offers strong evidence that Boise is doing well and some insight into why.  The unemployment rate is almost 10 percent lower in Boise than in the rest of the country, while the labor-force participation rate is slightly higher and the average age of the population is almost 10 percent younger.  In addition, the percentages of persons employed in professional, scientific and management and administrative occupations and in public administration are both about 13 percent higher than the national average.  Because the local economy is doing well, the number of vacant housing units, be they owner-occupied units or rental units, is 33 percent lower than what it is for the nation as a whole and the percentage of owner-occupied units stands at 68.2% versus 65.4% for the nation.         

According to Pat Minegar, President of A-1 Heating and Air Conditioning, “Boise is doing better because residents from high tax states like California, Oregon and Washington are moving here to save money and because this is a great place to raise kids.  In addition, existing homeowners are again investing in their homes and that helping put a floor under prices.“  Whatever the cause, house prices are definitely on the mend.  Prices are up 2.4% since the trough in May 2011 and are expected to continue rising going forward.      

Improving economic conditions have resulted in payroll employment being down just 6.8% from its peak in March 2007, and up by 2.5% since the trough in June 2010.  Single family permitting activity is up 3.7% on a seasonally adjusted monthly average basis from the trough set in March 2009.  While new homes are being built in many parts of the Boise MSA, activity is now primarily centered in the Cities of Eagle, East Boise and Meridian all of which are in Ada County.

Improving Markets Index: Rochester, NY MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the seventh release 101 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Rochester, NY metropolitan statistical area (MSA).

The health of the Rochester housing market is due to its highly skilled workforce and diversified economy.  Rochester is not only a large regional healthcare center but also benefits substantially from the presence of the University of Rochester and the Rochester Institute of technology.  Moreover, because of the substantial amount of local imaging and optical research, many start-up firms in those areas deliberately choose to locate here.  Finally, Rochester is the headquarters of expanding regional and national firms like Wegman’s Food Markets and Paychex. 

According to home builder David Riedman, President of Riedman Development Corporation, “new high-tech firms are what makes Rochester special.  High paying jobs in lasers, lenses, wireless communications, nanoparticles and more is what has allowed us to do surprisingly well.”  He went on to say that “executives and senior managers are moving their families here and more often than not these households not only want nice housing but because of the dearth of inventory that means new housing.”        

Comparing 2010 American Community Survey data for Rochester to the US offers strong evidence that Rochester is doing well and some insight into why.  The unemployment rate is about 2.5 percentage point lower in Rochester than in the rest of the country, and the percentage of persons employed in manufacturing and in educational and healthcare services are 35 percent and 33 percent higher respectively than the national average.  Because the local economy is doing well, the number of vacant housing units, be they owner-occupied units or rental units, is 30 percent lower than what it is for the nation as a whole and the percentage of owner-occupied units stands at 68.5% versus 65.4% for the entire country.  Lastly, the percentage of persons with a bachelor’s degree or higher is about 20 percent higher in Rochester than it is for the rest of the US.  Part of the reason for this is that the percentage of the population with a graduate or professional degree is almost 40% higher in Rochester than it is nationally.      

According to Scott Fields, President of Matthews and Fields Lumber Company, “our house prices never rose like they did in many places and thus have not fallen either and as a result, few have lost money on their home.   In part it is because there was little if any increase in spec building back on ’04, ’05 and ’06 and in part it’s due to Yankee frugality.“  Whatever the cause, house prices have held up well over the past few years.  Prices are up 4.7% since the trough in March 2011 and have now surpassed the previous high set in August 2009.      

Improving economic conditions have resulted in payroll employment being down just 0.5% from its 10-year high in July 2008 and up by 3.3% since the trough in September 2009.  Single family permitting activity is up 2.7% on a seasonally adjusted monthly average basis from the trough set in March 2011.  While new homes are being built in many parts of the Rochester MSA, activity has been primarily centered in the towns of Greece, Henrietta, and Penfield in Monroe County as well as southeast of Rochester in the Town of Farmington and the Town of Victor, both of which are in Ontario County.  There has also been a small but noticeable pick-up in multifamily activity in downtown Rochester.

Improving Markets Index: Longview, TX MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the sixth release 98 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Longview, Texas metropolitan statistical area (MSA).

The health of the Longview housing market is due to its position as a regional healthcare center, the presence of the East Texas Oil Field and Haynesville-Bossier Shale, a large number of oil service companies that have benefited from the high price of oil and a significant specialty chemicals industry.  According to home builder Scott Hamilton, President of Scott Hamilton Custom Homes, “the natural gas industry has also been quite active and that and other things have increased the demand for high-tech blue-collar workers such as certified welders.  Moreover, since the last oil patch bust there has also been a strong push to diversify the economy away from hydrocarbons and that has also helped.”  He went on to say that “the low regulatory burden across the state has made us more competitive and the stream of retirees moving here has also helped keep home builders active and the economy growing”     

Comparing 2010 American Community Survey data for Longview to the US offers strong evidence that Longview is doing well, and insight into why.  The unemployment rate is about 2.5 percentage points lower in Longview than in the rest of the country, with the percentage of persons employed in natural resources, construction and maintenance about double the national average.  Also, the percentage in production and transportation is almost 20% higher than for the US, while the percentage in finance, insurance and real estate is less than one-fifth the national average.   Because the local economy is doing well, the number of vacant housing units is about 10% below what it is for the nation as a whole and the percentage of owner-occupied units stands at 70.1% versus 65.4% for the entire country.  Lastly, the percentage of owners with a mortgage is just 49% versus 67.2% for all of the US.   

According to Tim Holland, General Manager of Home Plus Floors, Inc., “Longview missed the real estate bubble and thus is not suffering from a bust.  This is because construction here proceeded at a steady pace and supply kept up with demand.  As a result no one has lost money on their house and there was little if any increase in spec building back in ’05, ’06 and ‘07.“   As a result, house prices have held up well over the past few years.  Prices are up 5.9% since the trough in March 2011 and are just half-of-one-percent off their high set in November 2009.       

Improving economic conditions have resulted in payroll employment being down by just 400 or four-tenths-of-one percent from its peak in October 2008 and up by 7.9% since the trough in October 2009.  Single family permitting activity is up 3.2% on a seasonally adjusted monthly average basis from the trough set in April 2009.  While new homes are being built in many parts of the Longview MSA, activity has been primarily centered in the Springhill area and elsewhere north of Longview, and in several subdivisions that are in the Hallsville Independent School District. 

Improving Markets Index: Lincoln, NE MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are employment, house prices and single family housing permit growth.

For the sixth release 98 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Lincoln, Nebraska metropolitan statistical area (MSA).

The health of the Lincoln housing market is due to its position as a large regional healthcare center, the presence of the University of Nebraska, the booming agricultural sector, and the large Federal Government and state government presence because of its role as the state capital.  According to home builder Jim Christo, President of Christo Design Build, “in addition, the insurance sector is very large with Lincoln Benefit Life, Farmers Mutual and many other firms either headquartered here or with a large presence here.  Also, the steady stream of grandparents moving here to be close to family and to enjoy the many cultural amenities along with many twenty-somethings returning after being away for a several years, have also helped keep home builders active and the economy growing.”  He went on to say that “the Kawasaki plant is very busy and Duncan Aviation, which refurbishes and upgrades business aircraft is hiring and as a result workers are upgrading their skills and that too has caused an up-tick in employment.”     

Comparing educational data from the 2000 Census to the 2009 American Community Survey shows that Lincoln has experienced increasing education levels.  The number of people with a high school diploma or less actually fell from 57,518 to 56,025, a decline of 2.6%.  By contrast, the number of with some college rose by 3% from 38,873 to 40,129 and those individuals with an associate degree skyrocketed by 39% from 14,364 to 19,986.  Similarly, the number of persons with a B.A rose by 23% from 34,615 to 42,657.  Finally, the number with a professional degree jumped 12%, from 17,386 to 19,473. While the educational gains were across the board, the large rises in the number of persons with an associate degree and a B.A. respectively speaks to a workforce that is rapidly increasing its skills.          

According to Jo Lewis, a mortgage loan originator with Liberty First Credit Union and President of the Nebraska Mortgage Association, “Lincoln missed the real estate bubble and thus is not suffering from a bust.  This is because construction here proceeded at a steady pace as lenders refused to loosen lending standards and held true to Midwest values.“   As a result, house prices have held up well over the past few years.  Prices are up 4.2% since the trough in January 2011 and are just 5.0% off their high set in July 2007.      

Improving economic conditions have resulted in payroll employment being down less than 1.0% from its peak in October 2011 and up by 3.2% since the trough in July 2010.  Single family permitting activity is up 1.6% on a seasonally adjusted monthly average basis from the trough set in January 2009.  While new homes are being built in many parts of the Lincoln MSA, activity has been primarily centered in the city of Waverly northeast of Lincoln, in and around the city of Hickman south of Lincoln and the city of Wahoo northwest of Lincoln.

Improving Markets Index: Bismarck, ND MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI is intended to draw attention to the fact that housing markets are local and that there are metropolitan areas where economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and are indicative of improving economic health.  The three are: employment, house prices and single family housing permit growth.

For the fourth release , 41 markets are currently classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Bismarck, North Dakota metropolitan statistical area (MSA).

The health of the Bismarck housing market is in part due to its position as a large and rapidly growing regional healthcare center, its excellent infrastructure and its role as the state capital.  These factors have made Bismarck a popular destination for retirees from other parts of North Dakota as well as for many other individuals.  Of late, however, local growth is primarily due to the recent discovery of the Bakken shale and the even larger and more recently discovered Three Forks-Sanish formation.  While they are both about 100 miles away, their effects are being felt in many ways.  According to home builder Chad Moldenhauer, the President of K & L Homes, “oil and gas service companies are setting up shop here as are pipeline and oil drilling firms, and the oil refineries are booming.”  He went on to say that “oil industry executives and senior managers are now moving their families here and with growth at both Medcenter One and St. Alexius, there is an increase in the number of high income households who not only want nice housing but often want new houses.”   As a result, education levels are rising in the area.    

Comparing educational and industry data from the 2000 Census to the 2009 American Community Survey confirms these impacts.  Today there are 3,012 (or 17%) more management jobs than in 2000 and 816 (or 25%) more professional jobs.  Reinforcing these findings, the number of people with a high school diploma increased from 15,837 to 18,239 and individuals with some college rose from 14,129 to 14,806.  The number of people with an associate degree jumped from 6,886 to 8,958, those with a B.A. jumped from 11,814 to 15,344 and the number of those with a professional degree increased from 3,808 to 4,705. Emblematic of the changing workforce dynamics, employment in the finance, insurance and real estate industry grew by 31% followed closely by employment in professional services which increased by 25%. 

According to Eddy Mitzel, President of Mitzel Homes and the North Dakota Association of Builders, “our very low unemployment rate, the construction of several coal fired gasification plants, the new wind farm, increasing immigration from western North Dakota, the new cancer care center and the oil boom have allowed us to totally skirt the recession.“  As a result, house prices have performed well over the past few years.  Prices are up 7.9% since the trough in February 2010 and have now surpassed the previous high set in July 2011.    

Improving economic conditions has resulted in payroll employment higher than ever with 64,800 employed persons, breaking the previous high of 64,500 set in October 2011 and up by 7.1% since the trough in December 2007.  Single family permitting activity is up a robust 10.7% on a seasonally adjusted monthly average basis from the trough set in March 2009.  While new homes are being built in many parts of the Bismarck MSA, activity has been primarily centered in the northwest part of the City of Bismarck and the southwest part of the City of Mandan.

Improving Markets Index: Athens, GA MSA

NAHB recently unveiled an index that tracks housing markets on the mend, the NAHB/First American Improving Markets Index (IMI).  The IMI highlights the fact that housing markets are local and that there are metropolitan areas where an economic recovery is underway.  The index measures three readily available monthly data series that are independently collected and indicative of improving economic conditions.  The three series are employment, house prices and single family housing permit growth.

For the fourth release, 41 markets are classified as improving under a conservative examination of local economic and housing market conditions.  Among these areas is the Athens, Georgia metropolitan statistical area (MSA).

The health of the Athens housing market is due to its position as a fast growing regional healthcare center, the large number of post-secondary educational institutions anchored by the University of Georgia, and retiree relocations.  According to home builder Brad Stephens, the current President of the Athens Area Home Builders Association and co-owner of Manor Holdings, “Between the growing student population at the University of Georgia, and the presence of two award-winning hospitals, our housing market is doing pretty well.”  He went on to say that, “we also have some world-class bio-tech firms such as Noramco and Merial that transfer employees to Athens from all over the world. Athens has also been featured in numerous publications as one of the best places to retire in the country.  These factors all provide an environment in Athens that is better insulated from the booms and busts of the real estate market.”

Comparing educational attainment and employment data from the 2000 Census to the 2009 American Community Survey confirms this.  The number of people with some college jumped from 15,177 to 22,859, and those with an associate degree rose from 3,668 to 5,377.  The number of those with a B.A. increased from 16,597 to 18,901 and those with graduate degrees climbed too, from 13,759 to 17,402. Finally, employment growth in the professional occupations outpaced all other sectors growing by 48% from 5,960 to 8,838.  This is clearly an area that is increasingly focused on higher education coupled with employers eager to hire newly minted graduates.   

According to Susan Bogardus of First American Bank of Athens, “retirees continue to be drawn here due to our proximity to Atlanta, the resources of the University of Georgia, the top-notch medical care, the sports and the affordable housing. ”  She went on to say that “continued construction activity at the University and the building of the new hospital have been a boon to the local economy.”  As a result house prices have held up well during the downturn.  They are up 2.5% since the trough in January 2011 and are about 15% off their all-time high set in September 2007. 

Improving economic conditions have resulted in payroll employment being down just 5,500 from its peak in March 2008 and up by 2.3% since the trough in January 2010.  Single family permitting activity is up a strong 9.1% on a seasonally adjusted monthly average basis from the trough set in March 2011.  While new homes are being built in many parts of the Athens MSA, activity has been primarily centered in Oconee County, due to its outstanding public schools, and in an around the University of Georgia to accommodate the growing student population.