#10 Fastest Growing U.S. Market for 2007
July 1, 2000: 1,808,752
July 1, 2006: 2,067,117
Percent change: 14.28 percent
* Population statistics from the U.S. Census Bureau
Percent change: 12.93 percent
* Job statistics from the Bureau of Labor Statistics
|Table of Contents|
|The Top 10 Fastest Growing Markets in America|
|1.||Las Vegas, Nevada|
|7.||Charlotte, North Carolina|
The city of Sacramento grew by 7.67 percent from 2000 to 2006; although some of the MSA’s growth took place in the city, much of the growth occurred outside of the city as well. Within Sacramento, the crucial 25 to 34-year-old age group grew by 23.66 percent, and the population of 55 to 64-year-olds also experienced major growth.
This indicates that young adults and those approaching retirement are attracted to the area. Recreational opportunities, warm weather and a more affordable cost of living than that of nearby San Francisco are factors that may help to attract these age groups.
Sacramento’s housing market is struggling; house prices dropped by 2.41 percent in 2006, according to the Office of Federal Housing Enterprise Oversight. The MSA was ranked fifth in the nation for its foreclosure rate in the first half of 2007, according to RealtyTrac. Although these are not positive factors for the overall economy, they are helping to make housing more affordable than in many other areas of the state.
The average existing single family home in the Sacramento MSA cost $356,500 in the second quarter of 2007, compared to $846,800 in nearby San Francisco, according to a report by the National Association of Realtors (NAR).
As the capital of California, Sacramento has a large number of government jobs. In fact, the government sector is the largest sector in the Sacramento region in terms of employment, according to the Sacramento Area Commerce and Trade Organization (SACTO). The second and third largest sectors are trade, transportation and utilities and professional and business services, according to SACTO.
From 2000 to 2006, the city of Sacramento experienced job growth of 62.57 percent in construction; 29.18 percent in wholesale trade; 24.96 percent in finance and insurance, and real estate and rental and leasing; 28.91 percent in professional, scientific, and management, and administrative and waste management services; and 41.95 percent in arts, entertainment, and recreation, and accommodation, and food services.
Single family building permits in the MSA declined by 18 percent from August 2006 to August 2007, while multi-family permits dropped by 54 percent, for an overall total decline of 28 percent—slightly higher than the national average decline of 24 percent, according to the National Association of Home Builders (NAHB).
Overall, the MSA had positive job growth every year from 2000 to 2006, with growth consistently in the 1.5 to 3 percent range annually.