Urban Utah's economy hot
State dominates an index of cities' performance
By Tom Harvey
The Salt Lake Tribune
Article dated: 09/10/2008
Best Performing U.S. Cities 2008
Utah's urban corridor is at the forefront of the "new economy."
So much so that three Wasatch Front metro areas are in the Top 25 in the United States in the annual Best-Performing Cities index compiled by the Milken Institute and Greenstreet Real Estate Partners. Provo-Orem is in the No. 1 spot, with Salt Lake City at No. 3 and Ogden-Clearfield 18th.
The rankings speak to Utah's combination of institutions of higher education that spin off research into commercial products, the concentration of high-tech and medical science companies and a competitive pool of capital.
Report author Russ DeVol, an economist and director of Regional Economics at the Milken Institute, also cited the low cost of doing business in Utah, a pro-business attitude and the state's comparatively small exposure to the subprime mortgage crisis.
"So Utah overall has been the best performer in the past few years," said DeVol.
Jason Perry, executive director of the Governor's Office of Economic Development, said the Milken index is just one of several recent reports that rank Utah as a top state for doing business and for its high-tech industry. Milken is important because it looks at long-term economic indicators that the state also uses to decide how to spend money on economic development efforts, he said.
"Certainly we take from this that we are doing this right. It helps guide us as we help to recruit companies in the future and grow business here."
This was the ninth year the institute has ranked urban-area economies. The Best-Performing Cities study is based on job creation and retention, the quality of jobs being produced and overall economic performance.
The Utah urban areas received high ratings because the jobs created here generally are higher-paying and linked to the state's booming technology and life-sciences sector.
Those types of jobs are dependent upon what DeVol calls the intangible economy, which is knowledge-based, often developed at universities and characterized by the importance of human capital and intellectual labor.
That contrasts to the "old economy," based on manufacturing in which jobs were relatively low-skilled and in such places as Michigan and Ohio.
"Other areas have seen a large loss of jobs to China," DeVol said. "Utah is not as tied in as closely to what some called the old economy."
Emphasizing the shift away from the manufacturing economy of the so-called Rust Belt, the South had 16 metro areas among the top 25 of the index, while the West had eight.
Among other reasons, Provo-Orem jumped from the eighth place in the index last year to No. 1 based on increased research at Brigham Young University and the subsequent spin-off of jobs into the private sector.
Although BYU is mainly a teaching institution with a relatively small research budget, it has faculty who are entrepreneurial-minded and its highly rated Marriott School of Management offers a number of classes on entrepreneurship, said Mike Alder, director of the Office of Technology Transfer.
''We have had a lot of research in new drugs, in diagnosis and in medical devices,'' he said.
Shauna Theobald, chair of the Utah Valley Entrepreneurial Forum, which promotes business start-ups, said an "ecosystem" has developed in Utah County that feeds entrepreneurial activity. That includes a history of high-tech companies stretching back to WordPerfect and Novell and a group of Angel investors, individuals who pour money into start-ups.
"We've got the money. We've got the inventors. We've got the experience," said Theobald, a manager at Novell's Open Source Technology Center.
DeVol said Salt Lake City benefits from the presence of the University of Utah, particularly its medical research. The metro area also has a high concentration of computer hardware and software companies, and strong financial and medical companies that are regional leaders.
Hill Air Force Base helps drive the economy of the Ogden-Clearfield area, which moved up 42 places from last year in the Best-Performing Cities index.
"Hill has been an important anchor in drawing a number of aerospace-related firms to the area," said DeVol.
In southern Utah, St. George ranked in fourth place among small cities after being No. 2 last year. Much of that area's economy is based on construction, which has been hit by the downturn in the nation's housing market.
Monday, September 22, 2008
Saturday, September 13, 2008
Best City-Provo/Orem
The Milken Institute/Greenstreet Real Estate Partners Best Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary and technology growth.
The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.
THE NUMBER 1 RANKING GOES TO:
Provo-Orem, UT
Population: 493,306
5-yr Job Growth (2002-2007) Score: 116.49 Rank: 5
1-yr Job Growth (2006-2007) Score: 103.87 Rank: 3
5-yr Wages & Salaries Growth (2001-2006) Score: 109.54 Rank: 33
1-yr Wages & Salaries Growth (2005-2006) Score: 105.23 Rank: 3
Job Growth (Mar07 - Mar08) Growth: 1.90 % Rank: 27
5-yr Relative HT GDP Growth (2002-2007) Score: 105.80 Rank: 55
1-yr Relative HT GDP Growth (2006-2007)7 Score: 106.06 Rank: 9
High-Tech GDP LQ - 20078 Score: 1.34
The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.
THE NUMBER 1 RANKING GOES TO:
Provo-Orem, UT
Population: 493,306
5-yr Job Growth (2002-2007) Score: 116.49 Rank: 5
1-yr Job Growth (2006-2007) Score: 103.87 Rank: 3
5-yr Wages & Salaries Growth (2001-2006) Score: 109.54 Rank: 33
1-yr Wages & Salaries Growth (2005-2006) Score: 105.23 Rank: 3
Job Growth (Mar07 - Mar08) Growth: 1.90 % Rank: 27
5-yr Relative HT GDP Growth (2002-2007) Score: 105.80 Rank: 55
1-yr Relative HT GDP Growth (2006-2007)7 Score: 106.06 Rank: 9
High-Tech GDP LQ - 20078 Score: 1.34
Thursday, September 4, 2008
Increase in Affordability
Report: Utah real estate sees increase in affordability
Home prices in Salt Lake City and other parts of Utah are more affordable than they’ve been in years, according to a national report released Aug. 19. The Housing Opportunity Index, which is published by the National Association of Home Builders and Wells Fargo, said second quarter home prices in the Salt Lake metro area were more affordable than they’ve been since 2005.
The report said that during second quarter 2008, nearly 55 percent of all new and existing homes were affordable to families earning the area’s median income of $65,300. The availability of affordably priced homes hasn’t been this high since the third quarter of 2005 when 58 percent of homes were considered affordable.
Of all the Utah metro areas reported, Ogden-Clearfield had the highest affordability ranking in the state, with 68 percent of homes being affordable to those earning the median income. That’s up from about 61 percent in the first quarter.
The Provo-Orem Metropolitan Statistical Area also saw improved affordability in the second quarter although there were fewer affordable homes in the area compared to Salt Lake and Ogden. Provo-Orem, however, is showing real improvement in terms of affordability. As recently as the third quarter of 2007, only 22.5 percent of homes were affordable to those earning the area’s median income. Now nearly 50 percent of homes are considered affordable.
Even St. George has seen huge affordability gains. In 2006, only 16 percent of St. George homes were affordable; now that number has jumped to nearly 37 percent.
Home prices in Salt Lake City and other parts of Utah are more affordable than they’ve been in years, according to a national report released Aug. 19. The Housing Opportunity Index, which is published by the National Association of Home Builders and Wells Fargo, said second quarter home prices in the Salt Lake metro area were more affordable than they’ve been since 2005.
The report said that during second quarter 2008, nearly 55 percent of all new and existing homes were affordable to families earning the area’s median income of $65,300. The availability of affordably priced homes hasn’t been this high since the third quarter of 2005 when 58 percent of homes were considered affordable.
Of all the Utah metro areas reported, Ogden-Clearfield had the highest affordability ranking in the state, with 68 percent of homes being affordable to those earning the median income. That’s up from about 61 percent in the first quarter.
The Provo-Orem Metropolitan Statistical Area also saw improved affordability in the second quarter although there were fewer affordable homes in the area compared to Salt Lake and Ogden. Provo-Orem, however, is showing real improvement in terms of affordability. As recently as the third quarter of 2007, only 22.5 percent of homes were affordable to those earning the area’s median income. Now nearly 50 percent of homes are considered affordable.
Even St. George has seen huge affordability gains. In 2006, only 16 percent of St. George homes were affordable; now that number has jumped to nearly 37 percent.
Monday, September 1, 2008
Home Sales Tips
Essential Home-Selling Tips
What is staging? Sabrina Soto, "Get It Sold" host and home-staging expert, knows.
Here are her top tips for helping you compete in today's real estate market.
By Sabrina Soto
1. Curb appeal
A fresh coat of paint on the front door and a groomed lawn invites buyers in. Pull weeds, rake leaves and trim overgrown shrubs, especially if they block windows or the path to your front door.
2. Paint
It's important to make your house generic. A fresh coat of neutral paint will make your home appear larger, brighter and more appealing to potential buyers.
3. Make repairs
Fix things like leaky faucets and sticky cabinets, and replace old screens. They may seem insignificant, but minor repairs add up in the mind of a potential buyer. They tend to overestimate how much repairs cost. You don't want to give them any reason not to put in an offer.
4. Rearrange
Make sure your furniture placement allows for easy traffic flow and shows the purpose of each room. If you have too much furniture, rent a portable storage device to hold things until you are ready to move into your new place. If you don't have enough furniture, borrow or rent. A clean and uncluttered kitchen is a staple of home staging.
5. Pack up
This includes personal photos and portraits. Less is always more. The less clutter and knickknacks you have lying around, the more potential buyers will be able to see your home and what it offers. Remember, you are selling your house, not your stuff. Plus, getting a head start on packing will eliminate some stress down the road.
6. Organize
When your house is meticulously organized, buyers will envision themselves living a stress-free life in your home.
7. Clean
Clean every inch of your house, and don't forget to make your windows and floors sparkle. If your carpet appears old and stained, think about replacing it. Also, make sure there are no offensive odors. Purchase an air-neutralizing spray that will help remove odors without creating an overwhelming masking odor. Clean homes sell!
8. Lighten up
Lighten up your home with natural tones and a neutral dose of style.Let the sun shine in, and turn on the lights. Open all blinds or curtains, and make sure the house is well lit.
9. Temperature
Be sure potential buyers are comfortable when touring your home. If it's freezing outside, leave the heat on, and if it's summer, turn on the air conditioner.
10. Keep it ready to show
It may be a little inconvenient, but until you accept an offer, keep your home in tip-top shape at all times. What this means is that each room should have a clear purpose, nice flow and be clean and clutter-free. Buyers need to be able to picture themselves and their things in a room, and taking these steps will help ensure that.
What is staging? Sabrina Soto, "Get It Sold" host and home-staging expert, knows.
Here are her top tips for helping you compete in today's real estate market.
By Sabrina Soto
1. Curb appeal
A fresh coat of paint on the front door and a groomed lawn invites buyers in. Pull weeds, rake leaves and trim overgrown shrubs, especially if they block windows or the path to your front door.
2. Paint
It's important to make your house generic. A fresh coat of neutral paint will make your home appear larger, brighter and more appealing to potential buyers.
3. Make repairs
Fix things like leaky faucets and sticky cabinets, and replace old screens. They may seem insignificant, but minor repairs add up in the mind of a potential buyer. They tend to overestimate how much repairs cost. You don't want to give them any reason not to put in an offer.
4. Rearrange
Make sure your furniture placement allows for easy traffic flow and shows the purpose of each room. If you have too much furniture, rent a portable storage device to hold things until you are ready to move into your new place. If you don't have enough furniture, borrow or rent. A clean and uncluttered kitchen is a staple of home staging.
5. Pack up
This includes personal photos and portraits. Less is always more. The less clutter and knickknacks you have lying around, the more potential buyers will be able to see your home and what it offers. Remember, you are selling your house, not your stuff. Plus, getting a head start on packing will eliminate some stress down the road.
6. Organize
When your house is meticulously organized, buyers will envision themselves living a stress-free life in your home.
7. Clean
Clean every inch of your house, and don't forget to make your windows and floors sparkle. If your carpet appears old and stained, think about replacing it. Also, make sure there are no offensive odors. Purchase an air-neutralizing spray that will help remove odors without creating an overwhelming masking odor. Clean homes sell!
8. Lighten up
Lighten up your home with natural tones and a neutral dose of style.Let the sun shine in, and turn on the lights. Open all blinds or curtains, and make sure the house is well lit.
9. Temperature
Be sure potential buyers are comfortable when touring your home. If it's freezing outside, leave the heat on, and if it's summer, turn on the air conditioner.
10. Keep it ready to show
It may be a little inconvenient, but until you accept an offer, keep your home in tip-top shape at all times. What this means is that each room should have a clear purpose, nice flow and be clean and clutter-free. Buyers need to be able to picture themselves and their things in a room, and taking these steps will help ensure that.
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