The rate of job growth in the Southeast region’s eight States and Puerto Rico continued to slow through the end of 2000, dropping below 2 percent for every State except Florida and Georgia. Florida’s increase was just above 2 percent, and Georgia’s was 2.6 percent. The overall unemployment rate in the region remained at 3.9 percent. Employment growth in the Atlanta metropolitan area slowed sharply during 2000. In the 12 months ending November 2000, employment increased by 36,000 jobs, or 1.6 percent, compared with 106,500 jobs added during the same period in 1999. Much of the growth in 1999 was in high-technology and Internet-related industries.

In North Carolina, the slowdown in the economy was apparent in all three major metropolitan areas. In Charlotte-Gastonia, growth in nonagricultural employment was only 1.3 percent during 2000, down from 4.3 percent the previous year. In Greensboro/Winston-Salem/High Point, growth was 1 percent for the year, down from 2.5 percent during 1999. In Raleigh-Durham, the 2-percent growth during the year was off from the 3.4-percent pace of the previous year. According to the Center for Economic Studies at Wake Forest University, growth during 2001 is predicted to be only 1.6 percent, 1.3 percent, and 2.2 percent, respectively.

Despite the slower growth, the economy remains strong. A number of significant economic developments in the Southeast recently have been announced. In November, Nissan Motor Corporation announced plans for construction of a $930 million light truck factory to begin in Spring 2001 in Canton, Mississippi, just north of Jackson. Completion is scheduled for Summer 2003. When fully operational, the plant could employ up to 4,000 workers. Nissan and Mississippi economic development officials estimate that up to 26,400 additional jobs could be created by suppliers, contractors, and construction firms. The recently signed $6.3 billion, 7-year contract between FedEx and the U.S. Postal Service is expected to add 1,500 new jobs to the Memphis economy by Summer 2001. Of the 1,500 jobs, 500 will be for aircraft pilots. International Paper also announced that it will expand its Memphis operations, adding 950 new jobs.

The housing market in the Southeast was also slower during 2000, but the drop has not been as large as the drop in employment growth. Through December, single-family building permit activity in the Southeast region totaled 321,189 homes, down 6 percent. Multifamily permit activity of 118,400 units was off by 5 percent. NAR reported existing home sales in the 8 States in 2000 totaled 1,355,200, down only 0.1 percent from 1999. Sales in Florida and North Carolina were up 2 and 5 percent, respectively. In Puerto Rico, single-family building permit activity for 2000 increased 19 percent to 11,901 units, and multifamily activity increased by 37 percent to 5,234 units.

Multifamily permit activity in Miami-Dade County area totaled 6,145 units through December, a decline of 12 percent from 1999. The lack of available sites zoned for multifamily development is cited as one reason for the decline. Another reason is the market correcting itself, following 3 years of very high volume construction. In the Fort Lauderdale metropolitan area the story is the same. Multifamily building permit activity totaled 2,559 units through December, down 26 percent from 1999. Sites currently zoned for multifamily development are becoming very difficult to find in the eastern and central portions of Broward County. Activity in the Tampa-St. Petersburg-Clearwater metropolitan area was also down by more than 40 percent through December 2000, compared with the same period in 1999. The decline is in response to softer, more competitive market conditions in several submarkets. In South Carolina, the Charleston rental market continues to be very active, with 2,102 units under construction and an additional 1,782 units in the planning stages as of December.

Spotlight on Greenville-Spartanburg, South Carolina

The population of the 5-county Greenville-Spartanburg metropolitan area increased 12 percent between 1990 and 1999 to 929,565 persons. Once known as the “Textile Capital of the World,” there have been significant efforts in recent years to diversify the local economy. The area has attracted BMW, General Electric, Hitachi Electronics, MCI Telecommunications, Michelin, Tele Tech, and others. Greenville County, with strong support from the State, has created a probusiness climate that is successfully attracting high-technology manufacturers to the area. This effort has resulted in such recognition as Greenville’s being named to the list of “30 Best Cities for Small Business” by Entrepreneur magazine.

The Greater Greenville Chamber of Commerce recently announced that the value of the projects it secured for the Greenville area during the year 2000 will exceed $1 billion and create 2,591 jobs. The diverse economic growth has resulted in low unemployment rates, increased incomes, and in-migration of skilled workers. The metropolitan area’s unemployment rate averaged 2.6 percent in the 12 months ending November 2000. During the same period, total nonfarm employment in the area increased by 12,700 jobs, or 2.6 percent.

Homebuilding in the Greenville-Spartanburg metropolitan area has paralleled its economic expansion during the past 10 years. From 1990 through 1999, permits were issued for more than 51,300 single-family homes. Activity reached its peak in 1999 of more than 6,800 homes. In 2000, permits were issued for 5,867 single-family homes. The Greater Greenville Board of REALTORS^® reported sales of 5,211 existing homes in 2000, a 3.9-percent increase from 1999. During the same period, the average sales price of existing homes rose 3 percent to $146,983.

Multifamily activity also boomed during the 1990s, when permits were issued for more than 10,250 units in the metropolitan area between 1990 and 1999. Activity reached a high of more than 2,000 units in 1996. In 2000, permits were issued for 834 units. The rental market in the Greenville area has successfully absorbed the new units. According to the December 2000 edition of the Carolinas Real Data report, the rental vacancy rate as of November was 8.1 percent, the lowest since November 1996. In addition to the reduction in the vacancy rate, the report noted a slight increase in average rents compared with last year. With the reduction in building activity, the market is expected to become more balanced over the next 12 months.