Asheville Metro Economy Update - May 2006

Brought to you by the Asheville Metro Business Research Center, a service of the Asheville Area Chamber of Commerce at www.ashevillechamber.org. Sponsored by Beverly-Hanks & Associates, "Western North Carolina's #1 Real Estate Firm," at www.beverly-hanks.com.

Asheville Continues Economic Expansion

March 2006 marked the 25th consecutive month of record breaking employment in the Asheville metro. Employment has been increasing since February 2004, with each month topping the amount set a year earlier. Asheville's annual employment growth rate has averaged 1.3 percent over the most recent period, close to its 15-year average of 1.6 percent.

Asheville's long-lasting expansion contrasts with other metros in the state. Of North Carolina's 14 metro areas, five have yet to regain their earlier employment highs attained in 2000. Overall, the state of North Carolina has entered new employment territory in the last two months. The Wilmington metro currently holds onto the longest period of expansion in the state, equaling 33 straight months. The Asheville and Fayetteville metros are tied with the second longest current expansion in North Carolina.

Supporting Asheville's current expansion are three major industry sectors: health services, professional/business services, and hospitality/leisure activity. Of these, the health services sector has added the most jobs over the longest period, up by nearly 12,000 more jobs in 123 consecutive months of  growth.  

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Forbes Ranks Asheville Among Best Places For Business And Careers

Forbes magazine has ranked Asheville 24th of America's 200 largest metro areas for the Best Places For Business and Careers. Of the criteria evaluated, Asheville scored the highest for its comparably low cost of doing business, placing 19th in the nation. Expenditures for labor, energy, taxes, and office space were each considered to derive the cost of doing business for each metro. Asheville also placed high for positive net in-migration (34th), low crime (60th), area colleges (83rd) and job growth (84th).

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Kiplinger's Places Asheville 7th of 50 Smart Places to Live

Based on a survey of its readers, Kiplinger's Personal Finance recently ranked the top 50 cities in the nation that best met the most important factors people consider when choosing a place to live. Cost of living, quality health care, low crime, and economic vitality were all identified as critical factors when picking a city. Unlike other rankings, Kiplinger's then sent writers to each of the 50 top locations to investigate downtowns and neighborhoods for such things a cleanliness and character. All 50 cities were then ranked, with Asheville placing 7th. 

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Asheville Housing Trends Diverge from Nation

Existing home sales data for the first quarter of 2006 indicate a significant departure between activity in the Asheville area and the nation. Locally, average prices and  unit sales are up 9 and 18 percent, respectively. Nationally, average home prices advanced by 6 percent, while the number of residential units sold declined 1 percent. The data may reflect the divide between the weakening residential market in many higher priced metro areas across the nation and the more affordable and stable Asheville market.  

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Income Growth Reveals Metro Distinctions

Recently released per capita income data for 2004 show all metros in North Carolina enjoyed positive growth from one year earlier. Earnings (wages and owner's income) was the major contributor for the 2003-2004 period. Among all metros in the state, Asheville had the largest per capita increase from transfer payments (programs such as Social Security and retirement pensions), accounting for 47 percent, or $275 of the total gain after adjusting for inflation. Income from dividends, interest, and rent contributed a small share of the change in income across the state, with three metros experiencing a decline from these sources. 

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View Current Economic Indicators at: www.ashevillechamber.org/resources/facts.asp

Asheville Economy Update Editor: Tom Tveidt ttveidt@ashevillechamber.org

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