Tag Archives: Business and Economy

Raleigh is second-best performing city for jobs in U.S., report says

Raleigh is the second-best performing city in the United States, according to the latest index released by the Milken Institute.

In its report “Best-Performing Cities: Where America’s Jobs are Created and Sustained,” Milken points to Raleigh’s comparatively low business costs and thriving research and development-driven industries as major reasons for the high rank.

A number of metrics were considered in the overall ranking, including job growth, wage growth, GDP growth, etc. Raleigh ranked in the top 10 in several categories such as 5-year wages/salary growth, 1-year job growth and high-tech location quotient.

Raleigh climbed four spots from last year’s report. “The region has experienced strong job and wage growth in recent years, and short-term job gains indicate that economic momentum remains strong,” the Milken report stated. “In the 12 months ending in August 2017, the rate at which new positions were created in Raleigh was 2 percent higher than the U.S. average.”

The Utah metro of Provo-Orem nabbed the top spot. The Dallas-Plano-Irving metro in Texas, the San Francisco metro area and Fort Collins, Colorado, rounded out the top five in the large cities/metros category. The Charlotte metro, which includes Concord and Gastonia, ranked No. 13 in the report.

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The Triangle is going to grow — a lot. Embrace it.

More than half of us now live in cities with urban areas accounting for 80 percent of global GDP, according to a recent report by the United Nations. Seventy percent of the world’s population is expected to live in cities by 2050, putting huge strains on our current infrastructure — with potential to exacerbate environmental, transportation, health, crime, and inequity challenges.

Here in North Carolina, the Raleigh metro area is expected to grow 72 percent in the next 25 years from 1.27 million residents to 2.2 million, making it the third-fastest growing metro in the country (behind Austin, Texas and Fort Myers, Florida) according to a study by American City Business Journals. The Durham-Chapel Hill metro is expected to expand 36 percent (from 552,000 residents to 753,000).

For many, these are alarming statistics, and, without proper planning, our collective quality of life will be significantly compromised. But with foresight and continuous innovation, there may be opportunities to increase living standards for all.

One potential pathway is to embrace scale rather than reject it. Research by Geoffrey West and Luis Bettencourt, for example, shows that cities produce more units of output for each unit of input. In other words, a dollar spent on investment produces more than a dollar back on key economic indicators like GDP, wages, and patent creation.

Cities are also much more efficient, with residents using less energy per capita and needing fewer capital investments like roads, electric lines, etc. West and Bettencourt make clear, however, that these benefits will only be gained through innovation versus maintaining the status quo.

This is particularly true of our most vulnerable communities. Without break-through ideas focused on balancing economic growth with economic inclusion, we risk widening racial wealth gaps and accelerating gentrification and displacement.

A recent study by economists Berkes and Gaetani finds that clustering of high-tech innovation in cities has increased economic segregation — a trend that Richard Florida delves into in his new book The New Urban Crisis.

But what if innovation can improve equity? The company Kasita, for example, has created inexpensive micro-housing units that are stand-alone or can stack to form apartments. Matched with proper zoning, the right financing opportunities (including helping families and individuals establish stronger credit), and creative urban planning, housing solutions like Kasita could increase opportunities for home ownership.

The reduced cost of solar energy and innovative approaches to storing and distributing energy also provide an exciting opportunity to increase access to renewable energy, create jobs, boost local ownership opportunities (through employee owned co-ops), and cut the cost of energy.

To date, the sharing economy (examples include Lyft and AirBnB) have principally benefitedthe wealthy. But there is huge upside to be gained by expanding the shared economy into lower-income communities, including jobs with flexible hours, supplemental income opportunities, and more direct, less expensive transportation options in currently under-connected communities. Recognizing this, Los Angeles introduced a pilot program to put 100 car-share vehicles in low-income communities, and Minneapolis is subsidizing bike-share memberships and driving outreach efforts in poor neighborhoods.

In San Diego, a recent upgrade to 14,000 smart street lights is expected to save $2.4 million per year. It has also spurred the deployment of over 3,000 additional sensor nodes that can support a range of applications, including air quality sensing and gunshot detection – increasing quality of life and public safety across the city.

And cities globally are investing in urban farming strategies to create jobs, increase access to healthy food, and serve as learning laboratories.

These are all promising trends. As the United Nation’s New Urban Agenda makes clear: to thrive as a society we need to create sustainable communities for all.

BY CHRISTOPHER GERGEN AND STEPHEN MILLER, News & Observer

Buyers Flocking to ‘Harshest’ Market Yet

The climate is gradually moving toward spring-like temperatures…but it is burning up in housing, with prices rising 8 percent year-over-year, according to a new realtor.com® report. The climb in March sent the median list price to $280,000—above the prior record $275,000 from July 2017.

Based on data from realtor.com, there were 1.29 million March listings (a decline of 8 percent year-over-year), and homes lasted 63 days on-market (a 7 percent decline year-over-year and a 24 percent decline month-over-month).

“Our latest inventory data tells us buyers are out in full force this spring,” says Javier Vivas, director of Economic Research for realtor.com. “Never in history have there been more eyes on fewer homes than today. At the end of March, we observed price gains that put us on pace for half of the homes listed this summer to be above $300,000. Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing.”

 According to Vivas, the most affordable homes are the most scarce—and the most sought-after.

“The injection of new listings above $350,000 remains healthy, but inventory between $200,000 and $350,000 remains anemic and non-existent under $200,000,” Vivas says. “This bodes well for buyers in the upper and luxury tiers but paints a darker picture for the entry-level market. If the pattern holds, one in 12 listings nationally will be listed above $1,000,000 this summer, while only one in three will be listed under the $200,000—the sweet spot targeted by nearly half of all buyers. In February, above-$1,000,000 homes made up only one in every 40 home sales.”

 “March housing trends show the inventory depletion we’ve seen over the last two buying seasons is carrying over to this year,” says Vivas. “It’s going to be a languid search for buyers this season as they face the harshest, most competitive buying conditions yet.”

by: Suzanne De Vita, RISMedia