Regional Intelligence Report
The Chamber, in partnership with the City of Riverside, has released the most recent quarterly Regional Intelligence Report by Beacon Economics, evaluating the economic progress of Riverside Business.
In California, the study shows that the economy in every major region of the state has improved. This has been exhibited in job growth, taxable sales, and real estate.
The nation is also on an upward trend as “Beacon Economics expects 2014 to be better than 2013 after it moves past the largely weather-related issues that plagued the first quarter and 2015 is expected to be better still,” says the report.
Employment in the City of Riverside has grown by 2.9% between April 2013 and April 2014, adding an estimated 2,475 jobs to the labor market. The City has regained 8,400 of the 8,800 jobs lost during the pre-recession peak. The construction industry has added 325 jobs and has specifically seen the largest increase of jobs during the past year. The report explains that, “This is in line with growth in Construction sector activity across Riverside County.” In this same time period it is noted that almost every major industry has seen an increased job rate in Riverside. “The Leisure and Hospitality Industry in particular is posed for continued growth in 2014, with four new restaurants planning to open up their doors this summer at University Village,” explains Beacon Economics. The City’s population is currently on the rise as it grew by 0.06% in 2014. Employment growth is expected to increase as the City continues to attract new residents to the region.
Consumer and Business Spending
Taxable Sales posted from the fourth quarter of 2014 grew by 11.4%. “…taxable sales growth in the Inland Southern California region overall grew by only 5.1%, indicating that the City of Riverside continues the lead the region in consumer and business spending,” declares the report. The Construction and Automotive industries have seen the most positive growth in business and consumer spending. The report mentions, “Sales tax receipts in this industry increased by 17.7%, which comes as no surprise given that the city is currently undertaking several infrastructure projects in an effort to improve the quality of its major roads and other critical junctions within the city.” The medical industry has also driven taxable sales with the additions and renovations to Riverside Community Hospital.
Commercial and Residential Real Estate
Both the commercial and residential real estate markets have shown persistent improvement, driving economic growth in the region. Numbers indicate that the residential real estate market is maturing as home prices now commensurate with current household income levels. However, the amount of home sales has decreased from the previous quarter, with limited inventories as the attributing factor. More families are choosing to rent rather than own. Beacon Economics “suspects that demand for apartment rentals could continue to rise as home prices continue to increase and the supply of single-family home rentals continue to diminish, and possibly lead to increased apartment development projects.”
View the full Regional Intelligence Report here.