A press release from the Minnesota Department of Employment and Economic Development (DEED) highlighted 11,400 jobs lost statewide in April of this year. The largest losses occurred in trade, transportation, utilities, and government sectors. The information, education, and health care sectors all grew during the month.
DEED May 2013 Jobs Report
The Twin Cities Metro Area has bucked the statewide trend, having added 26,000 jobs over the past year. A market report by Marcus & Millichap predicts that the metro will add 49,000 jobs during 2013, of which a significant number will be in the health services sector. This employment growth, couple with stronger renter demand, has kept multifamily vacancy in the range of 2.5%, among the lowest rates in the nation.
The Twin Cities metro has added jobs every year since 2009 (source: Marcus & Milllichap)
Multifamily vacancy has remained low despite increasing supply (source: Marcus & Millichap)
While many Minnesota businesses and most of us in the real estate industry are not seriously impacted by the shutdown yet, there is still cause for concern. Now in Day 13 of the shutdown, it is already one of the longest in our country’s history. In the meantime while 22,000 state workers are out of work, the shutdown affects everyone from citizens who depend on social services to vacationers traveling to state parks to professionals who rely on state permits or licenses to do business. In the press lately are many accounts of individuals who have been affected. The question we are posing at St. Thomas, is how are local businesses and real estate being affected? If the shutdown is having an impact on your business or real estate sector, we encourage you to submit your comments at the end of this post.
Several Minnesota agencies that provide support to businesses and real estate are experiencing adverse effects or are shutdown completely. Minnesota Housing Finance, the state’s affordable housing bank, is under a partial shutdown. Loan servicing is still available but new applications may be delayed due to reduced staffing. Forgivable loans available through the state to homeowners affected by the North Minneapolis tornado are also on hold.
Commercial barge traffic on the Mississippi River may be restricted as early as this week, according to the St. Paul Port Authority, which is obligated to “keep its waterways open for commerce.” On Friday, SPPA’s counsel Eric Larson appealed the state’s move to suspend its dredging permits during the shutdown, citing that closure of just one of its four river terminals will result in 6,000 tons of commodities per week being unable to reach its destination. That’s the equivalent of 200 semi-trucks of product and includes staples such as livestock feed, water treatment chemicals, and recyclable metals, some of which are shipped from international locations.