dragas center for economic analysis and policy · 2019-02-20 · the forecasts and commentary do...

55
2018 Annual Economic Forecast Dragas Center for Economic Analysis and Policy

Upload: others

Post on 17-Apr-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

2018 Annual Economic ForecastDragas Center for Economic Analysis and Policy

Page 2: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

PRESENTING SPONSOR

EVENT PARTNERS

2

Page 3: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John R. Broderick, the Board of Visitors, the Strome College of Business, or the generous donors who support the activities of the Dragas Center for Economic Analysis and Policy and the Economic Forecasting Project.

Page 4: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

2018 National and VirginiaEconomic Forecast

Accelerating Growth, Increasing Risk

Professor Robert McNab

January 31, 2018

Page 5: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Current and Historical Expansions

5

Expansion Duration

In months

Annual

Employment

Growth

Annual

Real GDP Growth

October 1949 – July 1953 45 4.35% 6.14%

May 1954 – August 1957 39 2.51% 3.67%

April 1958 – April 1960 24 3.58% 4.86%

February 1961 – December 1969 106 3.23% 4.68%

November 1970 – November 1973 36 3.38% 4.60%

March 1975 – January 1980 58 3.52% 4.01%

December 1982 – July 1990 91 2.81% 3.81%

March 1991 – March 2001 120 2.01% 3.45%

November 2001 – December 2007 73 0.88% 2.66%

June 2009 – Present* 103 1.38% 2.14%

Source: Bureau of Labor Statistics, Bureau of Economic Analysis, National Bureau of Economic Research, and Old Dominion University Economic Forecasting Project. Real GDP in chained 2009 dollars. CAGR = Compound Annual Growth Rate. Annual Real GDP CAGR derived from quarterly series. Annual employment CAGR derived from monthly series. Current expansion data ends in 2017 Q3. Average annual Real GDP CAGR of previous expansions = 4.21% while average annual employment CAGR from previous expansions = 2.92%

Page 6: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Real GDP measured in chained 2009 dollars. U.S. Q4 and VA Q3 are advance estimates. VA Q4 is our forecast. Quarterly numbers are annualized rates of growth

3.1% 3.2%

2.6%

1.5%2.3%

1.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2010 2011 2012 2013 2014 2015 2016 2017

Q1

2017

Q2

2017

Q3

2017

Q4

Growth in Real Gross Domestic Product

United States and Virginia, 2010 - 2017 Q4

United States Real GDP Virginia Real GDP6

Page 7: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

7

129,733

147,380

120,000

125,000

130,000

135,000

140,000

145,000

150,000

Ja

n-0

7

Ju

l-07

Ja

n-0

8

Ju

l-08

Ja

n-0

9

Ju

l-09

Ja

n-1

0

Ju

l-10

Ja

n-1

1

Ju

l-11

Ja

n-1

2

Ju

l-12

Ja

n-1

3

Ju

l-13

Ja

n-1

4

Ju

l-14

Ja

n-1

5

Ju

l-15

Ja

n-1

6

Ju

l-16

Ja

n-1

7

Ju

l-17

Tho

usa

nd

s o

f Jo

bs

Total Nonfarm Employment

United States, January 2007 – December 2017

+ 17.65 Million Jobs

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Seasonally adjusted data. Data for December 2017 are preliminary. Trough was February 2010.

Page 8: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

3,596.1

3,966.5

3,400

3,500

3,600

3,700

3,800

3,900

4,000

4,100

Ja

n-0

7

Ju

l-07

Ja

n-0

8

Ju

l-08

Ja

n-0

9

Ju

l-09

Ja

n-1

0

Ju

l-10

Ja

n-1

1

Ju

l-11

Ja

n-1

2

Ju

l-12

Ja

n-1

3

Ju

l-13

Ja

n-1

4

Ju

l-14

Ja

n-1

5

Ju

l-15

Ja

n-1

6

Ju

l-16

Ja

n-1

7

Ju

l-17

Tho

usa

nd

s o

f Jo

bs

Total Nonfarm Employment

Virginia, January 2007 - December 2017

8

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Seasonally adjusted data. Data for December 2017 are preliminary. Trough is February 2010.

+400,400 Jobs

Page 9: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

9Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Peak employment for the United States was January 2008. Peak employment for Virginia was April 2008.

Seasonally adjusted data through December 2017. December 2017 data are preliminary. Data measure the number of reported jobs by the Current Employment Statistics (CES) program.

6.47%

4.69%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%1 5 9

13

17

21

25

29

33

37

41

45

49

53

57

61

65

69

73

77

81

85

89

93

97

10

1

10

5

10

9

11

3

11

7

Months Since Pre-Recession Peak

Monthly Job Growth From Pre-Recession Peak Employment

Virginia and the United States, 2008-2017

United States Virginia

Page 10: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Seasonally adjusted unemployment rates. December 2017 data are preliminary.

10

4.6%

10.0%

4.1%

3.0%

7.4%

3.7%

0%

2%

4%

6%

8%

10%

12%

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

Headline Unemployment Rate (U3)

Virginia and United States, January 2007 - December 2017

United States Virginia

Page 11: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. U-6 measures total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers. State level data based on 4-quarter moving average. Annual averages are presented.

11

10.1%

8.2%

16.7%

8.5%

6.8%

6.0%

12.9%

7.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Alternative Measure of the Unemployment Rate (U6)

Virginia and the United States, 2003-2017

United States Virginia

Page 12: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Local Area Unemployment Statistics. Seasonally adjusted data. December 2017 data are preliminary.

3,7705,461

7,4609,351

10,911

4,7827,991

6,061

368

19,560

1,549

11,411

18,263

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Apr

2017

May

2017

Jun

2017

Jul

2017

Aug

2017

Sep

2017

Oct

2017

Nov

2017

Dec

2017

Ind

ivid

ua

lsMonth-to-Month Change in Labor Force

Virginia, December 2016 to December 2017

12

Page 13: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Local Area Unemployment Statistics. Seasonally adjusted data. December 2017 data are preliminary.

4,402

8,280

13,35813,836

10,304

4,697

8,438

5,331

230

22,158

475

12,832

16,746-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Apr

2017

May

2017

Jun

2017

Jul

2017

Aug

2017

Sep

2017

Oct

2017

Nov

2017

Dec

2017

Jo

bs

Month-to-Month Change in Employment

Virginia, December 2016 to December 2017

13

Page 14: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

14

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Seasonally adjusted data.

63.7%62.7%

77.9%

69.0%

51.5%

57.0%

40%

45%

50%

55%

60%

65%

70%

75%

80%19

80

19

81

19

82

19

83

19

84

19

85

1986

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

1997

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

2012

20

13

20

14

20

15

20

16

20

17

Civilian Labor Force Participation Rate

United States, January 1980 – December 2017

Overall Men Women

Page 15: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

15

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Seasonally adjusted data.

71.5%

69.7%

65.3%

60%

62%

64%

66%

68%

70%

72%

74%19

76

19

77

19

78

19

79

19

81

1982

19

83

19

84

19

86

19

87

1988

19

89

19

91

19

92

19

93

19

94

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

06

20

07

20

08

20

09

20

11

20

12

20

13

20

14

20

16

20

17

Labor Force Participation Rate

Virginia, January 1976 to December 2017

Page 16: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

16Source: Office of Management and Budget and Old Dominion University Economic Forecasting Project. Federal deficits in nominal dollars.

$236$128

$158

$378 $413$318

$248$161

$459

$1,413

$1,294$1,300

$1,087

$680

$485$438

$585$666

-$1,600

-$1,400

-$1,200

-$1,000

-$800

-$600

-$400

-$200

$0

$200

$400

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

2010

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Federal Deficit in Billions of Dollars

Page 17: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

17

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Corporate Profits After Tax Without Inventory Adjustment. 2017 is through the 3rd quarter.

9.53%

6.52%

0%

2%

4%

6%

8%

10%

12%1950

19

52

19

54

19

56

19

58

19

60

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

2006

20

08

20

10

20

12

20

14

20

16

Corporate Profits as Percent of GDP

United States, 1950-2017*

Page 18: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

18

32.56

44.20

33.60

0

5

10

15

20

25

30

35

40

45

50

18

81

18

85

1889

18

93

18

97

19

01

19

05

19

09

19

13

19

17

19

21

19

25

19

29

19

33

19

37

19

41

1945

19

49

19

53

19

57

19

61

19

65

19

69

19

73

19

77

19

81

19

85

19

89

19

93

19

97

2001

20

05

20

09

20

13

20

17

Cyclically Adjusted Price/Earnings Ratio

Standard and Poor’s Composite Price Index

January 1881 – January 2018

Source: Robert Schiller, Irrational Exuberance. Prices and earnings are in January 2000 dollars. Data as of January 16th, 2018 market close. For further information: http://www.econ.yale.edu/~shiller/data.htm

Page 19: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

19

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Real GDP measured in chained 2009 dollars. 2017 US is an advance estimate. 2017 VA and 2018 are our forecasts.

2.2%

1.7%

2.6%

2.9%

1.5%

2.3%

3.0%

0.6%

0.0%0.2%

2.2%

0.5%

1.7%

2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2012 2013 2014 2015 2016 2017e 2018f

Growth in Real Gross Domestic Product

Virginia and the United States, 2012-2018

United States Real GDP Virginia Real GDP

Page 20: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

20

2017 Forecast 2017 Actual 2018 Forecast

U.S. Real Gross Domestic Product 2.2% 2.3% 3.0%

Civilian Job Growth 1.5% 1.2% 1.1%

Unemployment Rate 4.7% 4.1% 3.8%

Consumer Price Index 2.8% 2.2% 2.9%

Core Consumer Price Index 2.4% 1.7% 2.2%

3-month Treasury Bill 1.3% 1.4% 2.0%

10-year Treasury Bill 3.2% 2.4% 3.2%

30-year Treasury Bill -- 2.8% 3.6%

30-year Conventional Mortgage 4.3% 4.0% 5.0%

Federal Deficit --- -$655 Billion -$750 Billion

Virginia Real GDP* 1.5% 1.7% 2.2%

Virginia Employment Growth --- 1.4% 1.3%

Source: 2017 data reflects the annual rate of growth, last month, or day business day of 2017 where appropriate. 2017 VA GDP is an estimate based on the first 3 quarters. Data are rounded to nearest tenth.

Page 21: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

2018 Hampton Roads Economic Forecast

Stagnant Growth,Improving Future?

Professor Vinod AgarwalJanuary 31, 2018

2018 Hampton Roads Economic Forecast

Stagnant Growth,Improving Future?

Professor Vinod Agarwal

January 31, 2018

Page 22: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

1.62%2.17%

1.49%

2.25%2.12%

-0.04% -1.09%

0.80%

-2%

-1%

0%

1%

2%

3%

2001 to 2009 2009 to 2015 2015 to 2016 2016 to 2017e

Annual Growth Rate in Real GDPHampton Roads and the United States

United States Hampton Roads

Source: Bureau of Economic Analysis and the Old Dominion University Economic Forecasting Project. Data on GDP incorporates latest BEA revisions in September

2017. US GDP is advance estimate while Hampton Roads GDP is our estimates.

22

Page 23: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics and Old Dominion University Economic Forecasting Project. Peak employment for the United States was January 2008, Virginia was April 2008, and Hampton Roads was July 2007. Seasonally adjusted data through December 2017 (US and VA) and November 2017 (HR). Last month of data are preliminary. Data measure number of reported jobs.

6.47%

4.69%

-2.25%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%1 5 9

13

17

21

25

29

33

37

41

45

49

53

57

61

65

69

73

77

81

85

89

93

97

101

10

5

10

9

113

11

7

12

1

Months Since Pre-Recession Peak

Monthly Job Growth From Pre-Recession Peak Employment

Hampton Roads, Virginia and United States, 2008-2017

United States Virginia Hampton Roads

Page 24: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Defense Spending in Hampton Roads

Page 25: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

$522

$574

$584 $581

$490

$500

$510

$520

$530

$540

$550

$560

$570

$580

$590

DoD Budget

Control Act Cap

POTUS Request House

Appropriations

Senate

Appropriations

Billio

ns

of

Do

lla

rsDoD Base Budget Cap, Request, and Appropriations BillsFiscal Year 2018

Sources: Budget Control Act of 2011, FY 2018 Presidential Budget Request, U.S. House of Representatives and U.S. Senate

Page 26: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: U.S. Department of Defense and the Old Dominion University Economic Forecasting Project. *Includes Federal Civilian and Military Personnel and Procurement. Data for 2016 are estimates and data for 2017 are forecasts.

10.0

19.5 19.2 19.6

0.0

5.0

10.0

15.0

20.0

25.020

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

2012

20

13

20

14

20

15

20

16

20

17

Billio

ns

of

Do

lla

rsEstimated Direct DoD SpendingHampton Roads, 2000 to 2017

26

Page 27: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Estimated Average Compensation Hampton Roads, Selected Categories

27

2015 2016Change in

Compensation

Military $91,561 $92,189 0.69%

Federal Civilian Govt. Employees

$107,322 $109,624 2.15%

State and Local Govt. Employees

$62,602 $64,164 2.49%

Private Nonfarm $42,189 $41,751 -1.04%

Source: Bureau of Economic Analysis and Old Dominion University Economic Forecasting Project. Compensation includes wages, salaries, and benefits.

Page 28: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Where are the jobs?

Page 29: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

706.6

775.5

737.1

771.8 769.4

660

680

700

720

740

760

780

800

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Tho

usa

nd

s o

f Jo

bs

Average Annual Civilian Jobs

Hampton Roads, 1999-2017

Source: U.S. Department of Labor CES data and the Old Dominion University Economic Forecasting Project. Not seasonally adjusted. Data will be revised in March 2018

Page 30: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

-11

-7

-6

-5

-5

-4

-3

-2

-1

1

1

1

4

19

-15 -10 -5 0 5 10 15 20 25

Construction

Manufacuting

Retail Trade

Wholesale Trade

Information

Real Estate

Admin and Support

Finance and Insurance

Utilities

Management of Companies

Professional and Scientific

Transportation and Warehousing

Accodomation and Food

Health Care and Social Assistance

Thousands of Jobs

Change in Private Sector Employment

Selected Industries in Hampton Roads, 2007 Q1 to 2017 Q1

Source: Virginia Employment Commission: Covered Employment and Wages by Private Ownership and the Old Dominion University Economic Forecasting Project.

Page 31: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

746

827

846835 838

660

680

700

720

740

760

780

800

820

840

860

Tho

usa

nd

s o

f In

div

idu

als

Civilian Labor Force

Hampton Roads, 1999-2017

Source: U.S. Department of Labor LAUS data and the Old Dominion University Economic Forecasting Project. Not seasonally adjusted. Data will be revised in March/April 2018

Page 32: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

721

792797 796

803

660

680

700

720

740

760

780

800

820

Tho

usa

nd

s o

f In

div

idu

als

Number of Individuals Employed

Hampton Roads, 1999 to 2017

Source: U.S. Department of Labor LAUS data and the Old Dominion University Economic Forecasting Project. Not seasonally adjusted. Data will be revised in March/April 2018

Page 33: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Bureau of Labor Statistics Seasonally adjusted data and the Old Dominion University Forecasting Project. Preliminary data: US and VA (Dec 17) and HR (Nov 17). Hampton Roads data only through November 2017.

4.1%

3.7%

4.3%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

Ja

n-0

7

Ma

y-0

7

Se

p-0

7

Ja

n-0

8

Ma

y-0

8

Se

p-0

8

Ja

n-0

9

Ma

y-0

9

Se

p-0

9

Ja

n-1

0

Ma

y-1

0

Se

p-1

0

Ja

n-1

1

Ma

y-1

1

Se

p-1

1

Ja

n-1

2

Ma

y-1

2

Se

p-1

2

Ja

n-1

3

Ma

y-1

3

Se

p-1

3

Ja

n-1

4

Ma

y-1

4

Se

p-1

4

Ja

n-1

5

Ma

y-1

5

Se

p-1

5

Ja

n-1

6

Ma

y-1

6

Se

p-1

6

Ja

n-1

7

Ma

y-1

7

Se

p-1

7

Headline Unemployment Rate (U3)

Hampton Roads, Virginia, and United States

January 2007-December 2017*

United States Virginia Hampton Roads

Page 34: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Residential Housing is Looking Up

Page 35: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

$1,338

$551

$978

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1991

19

92

19

93

19

94

19

95

19

96

19

97

1998

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Millio

ns

of

Do

lla

rsValue of Building Permits for One-Unit Family Homes

Hampton Roads, 1991-2017

Source: U.S. Bureau of the Census and the Old Dominion University Economic Forecasting Project

Page 36: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

14,703

23,492

2,2653,228

0

5,000

10,000

15,000

20,000

25,000

2010 2011 2012 2013 2014 2015 2016 2017

Existing and New Construction Home Sales

Hampton Roads, 2010-2017

Existing Homes New Construction

Source: Real Estate Information Network and Old Dominion University Economic Forecasting Project. Information Deemed Reliable But not Guaranteed. Figures reported here

represent only those properties that are listed through REIN by REIN members and may not represent all new construction activity in our region.

Page 37: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

15.8%

49.0%

29.0%

4.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2002 2004 2006 2008 2010 2012 2014 2016

Distribution of New Construction Home Sales by Financing Type

Hampton Roads, 2000-2017

FHA VA Conventional Cash

Source: Real Estate Information Network and Old Dominion University Economic Forecasting Project. Information Deemed Reliable But not Guaranteed.

Page 38: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

$116,900

$223,000 $180,000

$219,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Median Sales Price of Existing Homes

Hampton Roads, 2002-2017

Source: Real Estate Information Network and Old Dominion University Economic Forecasting Project. Information deemed reliable but not guaranteed. 2002-2007 = 91% increase. 2011-2017 is a 22% increase.

Page 39: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Median Sale Price of Existing Residential Homes for Selected

Cities in Hampton Roads: 2007 and 2017

39Source: Real Estate Information Network and Old Dominion University Economic Forecasting Project. Information Deemed Reliable But not Guaranteed. * Williamsburg represents Williamsburg, James City County, York County and Gloucester County. ** Median price in Suffolk peaked in 2006 at $263,950

CityMedian Price

2007

Median Price

2017% change

Chesapeake $250,100 $245,000 -2.0%

Norfolk $195,000 $183,500 -5.9%

Portsmouth $165,500 $140,000 -15.4%

Suffolk** $257,500 $240,000 -6.8%

Virginia Beach $245,000 $247,500 +1.2%

Hampton $180,000 $155,000 -13.9%

Newport News $199,250 $170,000 -14.7%

Williamsburg* $284,450 $283,000 -0.5%

Hampton Roads $223,000 $219,000 -1.8%

Page 40: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

0.2%

7.1%

3.6%1.2%

26.6%

8.4%

0%

5%

10%

15%

20%

25%

30%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Short Sales and Bank-Owned Sales as Percent of Total Sales

Hampton Roads, 2006-2017

Short Sales REO Sales

Page 41: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Hotel Industry

Page 42: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

$520.2

$708.3$645.3

$803.1$841.6

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2000 2002 2004 2006 2008 2010 2012 2014 2016

Millio

ns

of

Do

lla

rsHotel Revenue in Hampton Roads

2000-2017

Source: STR Global and Old Dominion University Economic Forecasting Project.

Page 43: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

4.9%

3.9%

4.8%

3.0% 2.9%

4.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

United States Virginia Hampton Roads

Growth in Hotel Revenue and Revenue Per Available Room

United States, Virginia, and Hampton Roads, 2016-2017

Hotel Revenue Revenue per Available Room

Page 44: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

0.16%

4.15%

14.43%

3.85%

5.81%

4.80%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Williamsburg Market

Virginia Beach

Norfolk/Portsmouth

Newport News/Hampton

Chesapeake/Suffolk

Hampton Roads

Growth in Hotel Revenue

Hampton Roads, 2016 to 2017

Source: STR Trend Report, January 17, 2018, and the Old Dominion University Economic Forecasting Project. Williamsburg Market includes James City County, York County, and City of Williamsburg.

Page 45: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Source: Aidna (2018) market data adjusted by Dragas Center for Economic Analysis and Policy. Excludes shared rooms

$0.42

$2.16

$5.88

$0

$1

$2

$3

$4

$5

$6

$7

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Millio

ns

of

Do

lla

rsMonthly Airbnb Revenue in Hampton Roads

2015-2017

2015 2016 2017

Page 46: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

Port of Virginia: Growing rapidly

Page 47: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

17.8318.84

21.97

0

5

10

15

20

25

2000 2002 2004 2006 2008 2010 2012 2014 2016

Millio

ns

of

Ton

sGeneral Cargo Tonnage

Port of Virginia, 2000-2017

Source: Virginia Port Authority and Old Dominion University Economic Forecasting Project.

Page 48: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

1,348

2,128

1,745

2,224

2,841

0

500

1,000

1,500

2,000

2,500

3,000

2000 2002 2004 2006 2008 2010 2012 2014 2016

Tho

usa

nd

s o

f TE

Us

Twenty Foot Equivalent Container Units (TEUs)

Port of Virginia, 2000-2017

Source: Virginia Port Authority and Old Dominion University Economic Forecasting Project.

Page 49: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

0.330.39

0.43 0.45 0.480.55 0.57

0.770.82 0.84

0.930.98 0.95

1.04

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2011 2012 2013 2014 2015 2016 2017

Millio

ns

of

Co

nta

ine

rsMovement of Containers by Type of Transportation

Port of Virginia, 2011-2017

Rail Barge & Truck

Page 50: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

50

1,158 1,2011,307 1,341

1,4101,514

1,798

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011 2012 2013 2014 2015 2016 2017

Nu

mb

er

of

TEU

sAverage TEUs per Container Vessel Call

Port of Virginia, 2011-2017

Source: Virginia Port Authority and the Old Dominion University Economic Forecasting Project.

Page 51: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

51

2017 Forecast 2017 Actual 2018 Forecast

Hampton Roads

Real Gross Domestic Product

Initial Forecast

1.4% -- --

Hampton Roads

Real Gross Domestic Product

Mid-year revision

0.8% -- 1.2%

Civilian Job Growth 0.5% -0.3% 0.5%

Unemployment Rate 4.3% 4.3% 3.9%

Taxable Sales 2.6% 3.0% 3.0%

Hotel Revenue 4.4% 4.8% 3.9%

General Cargo Tonnage 2.7% 5.3% 2.8%

One Unit Housing Permit Value 2.6% 8.5% 2.4%

Source: 2017 data reflects the annual rate of growth, last month, or day business day of 2017 where appropriate.

Page 52: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John
Page 53: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

▪ To receive updates from the Dragas Center for Economic Analysis and Policy, please leave your card with us.

▪ You may also text CEAPODU to 66866 to join our email list and follow CEAPODU on Facebook and Twitter.

▪ You will not only receive access to our reports and presentations but also monthly economic updates for Hampton Roads. As we launch new products, you will be included in the distribution list.

▪ We put it the economy into context so that you can better understand the numbers.

53

Page 54: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

54

Presentation slides will be available at:

www.ceapodu.com

Professor Vinod Agarwal ([email protected])

Professor Robert McNab ([email protected])

Dragas Center for Economic Analysis and Policy

Strome College of Business

Old Dominion University

Questions?

Page 55: Dragas Center for Economic Analysis and Policy · 2019-02-20 · The forecasts and commentary do not constitute an official viewpoint of Old Dominion University, its President, John

55