Richmond Property Management - Great Homes, Great Apartments, Great Prices Phone: (804) 282-1877
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Are jobs finally coming back to Richmond?
The economic storm that began in late 2008 appears to be subsiding. From a 20+-year-high unemployment rate of 8.6% in February 2010, reports from February to May 2010 show a healthy addition of 12,000 new jobs. and a reduction in the unemployment rate to 7.6%.
The job loss rate has also fallen from a high of -5.4% in October 2009 to -1.9% in April 2010. This is very encouraging data from the Bureau of Labor Statistics, and it is expected that this pattern of recovery will continue. For job prospects, online advertised job vacancies in Richmond jumped 37.6% over last May, compared to a 23.5% increase in the U.S. overall.
In the third quarter of 2009, the Net Employment Outlook for Richmond stood at 9%, somewhat better than the 11% reported in the same time period in 2008, according to the most recent Manpower Outlook Survey. Job prospects appear best in Construction, Nondurable Goods Manufacturing, Transportation & Utilities, Wholesale & Retail Trade, Information, Financial Activities, Leisure & Hospitality, and Government.
This modest hiring climate is augmented by the expansion of the Fort Lee Military Base, a boon that should give a much-needed boost to both housing and retailing in the communities surrounding the base.
Fort Lee's expansion is one of the largest BRAC (Base Realignment and Closure) expansions in the nation, and will turn the base into the home for eight military agencies and schools from across the country. An Army Ordnance School, Army Logistics University, Soldier Support Center, and Tactical Service Equipment Depot have already opened, and future plans include an Air Force and Navy Culinary School.
"Fort Lee has been a sparkplug for economic development in the region," says Renee Chapline, executive director of Virginia's Gateway Region. "When completed, the annual impact is projected to be $1.2 billion." While local jobs, construction, and visiting soldiers will have a major impact on the retail and housing economy, local subcontractors are already benefitting.
By the time the expansion ends, the daily Fort Lee population is expected to reach 46,740 people -- up from 17,740 people in 2004 -- and the metro area should see increased hiring of personnel to help staff at the expanded base. All soldiers and their families who are coming to the area as a result of the BRAC expansion should be here by the end of 2011.
"It's a substantial expansion of Fort Lee and should create a lot of other employment to service that population in the Petersburg-Hopewell area," said William F. Mezger, chief economist for the Virginia Employment Commission before his retirement last year (reported by Emily Dooley in the Richmond Times-Dispatch, February 2010).
How does this impact the local rental market? Many of these jobs will employ terrific future tenants who have been unable to afford to live on their own for over a year. Many have been living with family members to survive. Once they feel secure with a consistent paycheck, we at KRS Holdings believe they will be looking for their own homes to rent.
The news is good. With the turning job market and the influx of a new population, 2011 may finally be the year when rents can be raised and concessions will be minimized. Rental properties will once again be in demand, and you will realize improved returns on your residential property investments.
To discuss how our property management services might benefit you, contact |
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