During the past decade major changes in population growth patterns were evident in Virginia. In contrast to what happened in the early 2000s housing boom, when many counties on the edges of urban areas became some of the fastest growing in the country, when the boom ended, these same “exurban” counties declined in population. At the same time, after decades of stagnation and decline, urban centers began to grow again during the early 2000s.
One way to understand these dramatic changes in where Virginia’s population grew is to analyze home construction activity because it is often one of the most reliable indicators of population and economic change.
During the early 2000s, Virginia underwent a real estate boom that mirrored what was occurring nationally in the wake of broadening access to mortgages. In Virginia, home prices rose in many parts of the state during this time, but particularly in larger metro areas. In Fairfax County, for example, the median home sale price more than doubled from $220,000 in 2000 to $545,000 in 2005. Rising home prices forced many home buyers to move farther out from urban areas for affordable homes in the exurbs.
Change in the Number of Homes Constructed 2000 to 2005
Pre-recession, the major narrative was that American households were spending too much and saving too little. Now, we’re saving again, and household debt burdens have declined to their lowest rates in over a decade. Well, pat ourselves on the back; we’re finally getting our fiscal cards in order and setting ourselves on the path to recovery, right?
Unfortunately, it’s not that simple. Our increased thriftiness is not necessarily a sign of changed attitudes and behaviors (although rising frugality has played a role), as much as changed circumstances. Defaults on mortgages and other loans in the aftermath of the recession have removed many debts from household balance sheets. The easy credit of the early 2000s—offering 18 year-olds free t-shirts and pizza in exchange for opening a credit card account, for example—has ended. And, unemployment and declining wages have reduced the creditworthiness of many households. While overspending used to draw calls for concern, now economists worry about consumer spending being too low to successfully spur a recovery.
Quinnipiac University released its latest poll of Virginia’s registered voters and the news is not good for Obama. Since 2011, Obama has led Romney in all trial heat match-ups that Quinnipiac released for the commonwealth, sometimes with leads well outside of polls’ margins of error. This month’s release, however, shows that Romney has closed the gap with Obama and is tied with him 44 – 44 in a hypothetical match-up.
|Quinnipiac Poll of Virginia Registered Voters:
If the election for President were being held today, and the candidates were Barack Obama the Democrat and Mitt Romney the Republican, for whom would you vote?
Employment rose nationwide in 2011, but the average weekly wage fell 1.7 percent according to data just released by the Bureau of Labor Statistics. Only five periods have seen declining wages since the series began in 1978 and fourth Quarter 2010-2011 is the only period to have seen declining wages occur with rising employment.
Virginia’s twelve largest localities, the only ones covered in this report, mirror the national trend. All twelve experienced employment growth, and all but one, Alexandria City, simultaneously experienced wage declines. We need to wait for more details on industry and occupational employment patterns in order to work out just why employment has risen without also driving up wages. And we need employment data for a few more quarters to see whether this divergence of employment and wages is a blip or the beginning of a trend.
Employment and Wage Change, Virginia’s largest Localities, 2010-2011
|Average Weekly Wage
|4th Quarter 2011
||4th Quarter 2010-11
|Prince William, VA.
|Alexandria City, VA
|Chesapeake City, VA
|Newport News City, VA
|Norfolk City, VA.
|Richmond City, VA
|Virginia Beach City, VA
Source: US Bureau of Labor Statistics, County Employment and Wages Summary
The Pew Center on the States recently published an interactive graphic on job gains and losses among the states. Using Bureau of Labor Statistics data, they examine annual percent changes (April to April) in the number of employed persons in each state between 2007 and 2012.
This interactive graphic is conceptually very similar to the state-by-state infographic on gay rights. There are six concentric circles, each representing one year. For example, 2007 captures the percent change in employment between April 2006 and 2007. A white band represents the official beginning of the recession in December 2007. The states are organized into five regions, although the separation between the regions is not well defined. Continue reading
Quinnipiac University released it’s latest poll of Virginia’s registered voters with President Obama holding a 47 to 42 percent lead over Republican challenger Mitt Romney in a match-up. Obama has maintained a consistent lead over Romney in all Quinnipiac polls since the beginning of the year, but there is one question that I, and many other analysts, are looking at just as closely in trying to predict which way Virginia will turn this election…
In her post “How old is old? Is 80 the new 65?”, Susan discussed how increases in longevity have dramatically increased the typical years lived post-retirement. The average 65-year-old retiree is now expected to survive until age 84. These changes mean that retirees need increasing amounts of money to afford a comfortable retirement and provide a cushion for emergencies over such a long period without employment.
How much do retirees need? Being able to retire at 65 is expensive even under the most conservative of estimates. Using the CNN Money retirement calculator, a 64-year-old earning $50,000 a year needs nearly $450,000 in savings to supplement Social Security and pay for their current standard of living for 19 years. While these needs may go down if they receive an employer pension, the costs will skyrocket if they face a medical crisis, require long-term care, or live longer than expected. In fact, some report that 65-year-old retirees need a minimum nest egg of more than $1 million.
The Bureau of Labor Statistics release of 2011 annual averages of regional and state unemployment shows continued good economic news for both the nation and Virginia.
- Nationwide, unemployment rates dropped by 0.7% between 2010 and 2011. Virginia saw a similar decline.
- Virginia’s 2011 unemployment rate (6.2%) was much lower than the national average (8.9%).
- Nearly two-thirds (64.7%) of Virginia’s population is working, compared to a national employment-population rate of 58.4%. In fact, Virginia was the only state to significantly increase its employment-population ratio between 2010 and 2011.
Compared to its neighbors in the South Atlantic region, such as Maryland and North Carolina, Virginia had the lowest unemployment rate and highest employment/population ratio in 2011. High employment may be one driver of Virginia’s low overall poverty rate.