Regional Economic Indicators

Regional Economic Indicators April, 27 Regional Economic Research Institute Lutgert College Of Business Phone 239-59-7319 Florida Gulf Coast University 151 FGCU Blvd. South Fort Myers, FL 33965

Table of Contents Overview...3 Airport Activity...6 Building Permits Single Family...9 Consumer Price Index... 11 Population... 11 Taxable Sales... 13 Workforce Unemployment Rates... 15 Existing Home Sales and Median Prices... 16 Contact List: Dr. Gary Jackson, Director Regional Economic Research Institute Phone 59-7317 Email; gjackson@fgcu.edu Ms. Carol Sweeney, Economist, Regional Economic Research Institute Phone 59-7327 Email; csweeney@fgcu.edu Mr. Jim Breitbach, Technical Support Introduction The Regional Economic Research Institute (RERI) has been developing a regional economic database and this report as a way to support its mission and assist the region. Additional economic series are planned and information such as this report will be made available on the Florida Gulf Coast University RERI website. The Institute thanks its many partners for assistance in obtaining the data including the Southwest Florida Regional Planning Council, Economic Development Organizations of Charlotte, Collier, and Lee counties, and the county and city permit offices. The institute is reporting new population estimates for that were released late in March by the Population Division of the U.S. Census Bureau. In addition, we are providing some new charts that show existing housing sales volume and the median price obtained from the Florida Association of Realtors. These new charts were requested by some of our readers and we welcome suggestions on the report or on new economic indicators. Some charts will have a break in the middle. This is a way to more clearly indicate that we are moving from annual monthly averages to more current monthly numbers. 2

Overview Airport Activity Building Permits Airport passenger activity is defined as the sum of arrivals and departures. Chart One shows the monthly seasonality of airport passenger traffic. Peak activity months are February, March and April during the winter season. Significantly lower activity takes place in the summer season especially the period of June through September. Regional Southwest Airport (RSW) located in Lee County has seen very fast passenger growth since 199 as shown by Chart Two. A new terminal has been constructed at RSW to handle in the increased traffic which is currently serviced by 22 airlines. February 27 Airport passenger Traffic at RSW increased by nine percent over February. Charts Three and Four show the airport passenger activity for Sarasota and Naples airports. Sarasota increased its passenger activity by 7 percent in February 27 compared to the same month in. The February 27 passenger traffic for Naples was significantly lower than the same month a year ago. The number of single family building permits in Lee County increased in March 27 to 575 from 417 in February 27 and is the first significant increase in building permits since May of. Several months of additional permitting data will be needed before we can confirm a trend to a higher level of permits. The number of single family building permits issued for Lee County increased from fewer than 5 per month in year 2 to over 1,5 per month in year 25. This has slowed significantly starting in as shown in Chart Five. The number of single family building permits issued by Collier County averaged about 3 per month between 2 and 25 as shown in Chart Six. By March 27, Collier County had seen a significant decline in permits issued falling to slightly above 1. Charlotte County saw increases in the number of permits from about 1 permits per month issued in 2 to over 2 per month in 25. During the first half of permitting increased significantly rising to 45 in May of, however in the later part of permitting had fallen to about 125 permits. Single family permits fell to a recent low of only 73 permits in March 27. Consumer Price Index The Bureau of Labor Statistics (BLS) collects data monthly on the cost of a fixed basket of consumer goods at the national and regional level. Currently data is available for Tampa/St. Petersburg area on a semiannual basis. Chart Eight provides a summary of the changes observed since 2. Several trends are of interest. First, consumer prices in the Southern region of the United States have grown at a slower rate than the nation for the period from 2 to. Second, the 3

Population Tampa/St. Petersburg consumer prices have increased at a faster rate than the nation. The Population Division of the U.S. Census Bureau released its July 1, estimates for county population on March 22, 27. Charlotte County had an estimated population on July 1, of 154,438 which is 98 people higher than the estimate for 25 and 2,654 people lower than the estimate for July 1, 24. The decline in population and slow growth are primarily a consequence of the destruction of housing and businesses caused by Hurricane Charley in August of 24. The Census population estimate at 154,438 is slightly higher than last year s conference estimate of 154,94. The new U.S. Census population estimate for for Collier County is 314,649 which is 15,8 lower than last year s conference estimate reported by EDR. The new U.S. Census estimate for for Lee County is 571,344 which is 2,541 lower than last year s conference estimate. Hendry and Glades County new Census population estimates are 4,459 and 11,23. Chart thirteen reflects the new U.S. Census estimates. We will update the remaining population charts this July with the new Florida conference population forecasts. Historic population estimates and projections are provided by the Florida Office of Economic and Demographic Research (EDR). A Demographic Estimating Conference is held each year in July to update the population forecasts. Charts Nine and Ten show the historic growth from 198 to. Charlotte County has doubled its populations from 1984 to. Collier County has grown at an even faster rate doubling its population from 1991 to and Lee County has doubled its population from 1986 to. Glades and Hendry Counties have had lower rates of population growth. Chart Eleven shows the projected population increases for 27 to 23. Charts Twelve through Fourteen provide the regional percentages of population by County for the years 199,, and 23. A slightly slower population growth rate in the near term is expected through 28 reflecting the slowing housing and job market. After evaluating the demographic data above it is clear that we have experienced tremendous growth over the past 3 years and all signs point to the continued long-term growth of the area. Having said that, the growth will not be as large due to a number of factors such as: Build out suitable land for construction has become scarce Restrictions building codes and hurricane restrictions may limit the expansion of some areas Costs both the conversion of land and construction costs continue to escalate as well as insurance costs upon completion Climate hurricane fears may limit demand to the area particularly in the period of increased activity we appear to be in. 4

Taxable Sales Population Tree as the population ages and the baby boomer population passes thru the age of retirement there is a smaller cohort to follow. Taxable sales are reported by the Florida Department of Revenue. We have adjusted the taxable sales charts to show the month of collection instead of the reporting month that is issued by the Florida Department of Revenue. This makes December the latest collection month available. The figures are used to track consumer spending, an important contributor to economic growth in the region. There have been slower growth periods as shown in 21 were the nation entered a recession. Each county in Southwest Florida showed an increase in December taxable sales over November driven by increased visitors and seasonal traffic. Although not shown on the chart, December taxable sales increased very slightly over December 25 taxable sales for Charlotte County. Lee and Collier Counties saw about a three and five percent reduction in taxable sales, respectively, for December compared to December 25. Chart 15 shows the average monthly sales by year for 2 to. Chart 16 shows the taxable sales by month for. Workforce Unemployment In February, 27 the unemployment rate for Charlotte County fell to 3.8 percent from 4. percent in January 27. Collier County s February unemployment rate fell to 2.8 percent from 3. percent in January 27. Lee County s February unemployment rate fell to 3.2 percent from 3.3 percent in January 27. The national unemployment rate in February 27 is 4.5 percent. Average annual unemployment and monthly average unemployment for the latest year are shown in Tables Seventeen and Eighteen. The low unemployment rates would indicate the continuation of a very tight labor market. Sales of Single-Family Existing Homes and Median Sales Price The Florida Association of REALTORS provides a summary of the number of existing home sales and the median price per month. Charts Nineteen through Twenty-one provide the latest trends for Lee, Collier and Charlotte Counties. Lee County had existing sales of 423 in February of 27 down from 622 in February of. The median sales price was $256,1 which is down from $28,3 in February of. Collier County has had data reporting issues since November of so their chart only goes through October of. There is a similar pattern of fewer homes sold at a lower median price. Charlotte County has seen home sales for February 27 of 216, a slight decline from February with a median price of $21,1 in February 27 down from $226,3 in February. 5

Airport Activity Chart One Thousands 12 1 Airport Passenger Arrivals and Departures (APF on Right hand scale) 8 7 Thousands 6 Arrivals+Departures (RSW & SR 8 6 4 2 5 4 3 2 1 Arrivals+Departures (APF Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 27 Feb 27 RSW (SWFL Int'l) SRQ Month (Sarasota) APF (Naples) Source: Local Airport Authorities 6

Chart Two 12 RSW (SW Florida International) Airport Passenger Traffic Trend Thousands Arrivals plus Departures 1 8 6 4 2 199 2 27 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Local Airport Authorities Chart Three 3 SRQ (Sarasota) Airport Passenger Traffic Trend Thousands Arrivals plus Departures 25 2 15 1 5 199 2 27 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Local Airport Authorities 7

Chart Four 18 APF (Naples) Airport Passenger Traffic Trend 16 Thousands Arrivals plus Departures 14 12 1 8 6 4 2 199 2 27 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Local Airport Authorities 8

Building Permits Single Family Chart Five 18 Single Family Permits Issued - Lee County 2- Monthly Averages for Each Year; Most Recent Monthly Data 16 14 12 Permits Issued 1 8 6 4 2 2 Av 21 Av 22 Av 23 Av 24 Av 25 Av Av Apr May Jun Jul Aug Sep Oct Nov Dec Jan 27 Feb 27 Mar 27 Source: Local Building and Zoning Departments, included Fort Myers, Cape Coral, and unincorporated Lee County permits 9

Chart Six 5 Single Family Permits Issued - Collier County 2- Monthly Averages; Most Recent 12 Months Data 45 4 35 Permits Issued 3 25 2 15 1 5 2 Av 21 Av 22 Av 23 Av 24 Av 25 Av Av Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 27 Feb 27 Mar 27 Source: Local Building and Zoning Departments; includes unincorporated Collier County permits only. Chart Seven 5 Single Family Permits Issued - Charlotte County 21- Monthly Averages; Most Recent 12 Months Data 45 4 Number of Permits 35 3 25 2 15 1 5 21 Av 22 Av 23 Av 24 Av 25 Av Av Apr May Jun Jul Aug Sep Oct Nov Dec Jan 27 Feb 27 Mar 27 Source: Local Building and Zoning Departments; includes unincorporated Charlotte County permits only. 1

Consumer Price Index Chart Eight CPI 125 12 115 Consumer Price Index - Annual Data (Year 2 = 1) Tampa-St. Petersburg-Clearw ater, FL (MSA) US - South Region * US * South Region: Alabama, Arkansas, Delaw are, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. 11 15 1 2 21 22 23 24 25 Source: BLS Population Chart Nine 7 Historic Population Growth Charlotte, Collier, and Lee Counties Population - Thousands 6 5 4 3 2 Charlotte Collier Lee 1 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 Source: Florida EDR: Demographic Estimating conference Database, Updated July. 11

Chart Ten 45 Historic Population Growth Glades and Hendry Counties 4 35 Population - Thousands 3 25 2 15 Glades Hendry 1 5 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 Source: Florida EDR: Demographic Estimating conference Database, Updated July. Chart Eleven 12 Population Growth Projections 6 Charlotte / Collier / Lee - Thousands 1 8 6 4 2 5 4 3 2 1 Glades / Hendry - Thousands 27 21 215 22 225 23 Charlotte Collier Lee Glades Hendry Source: Florida EDR: Demographic Estimating conference Database, Updated July. 12

Chart Twelve Population Distribution by County - 199 Collier 24% Glades 1% Hendry 4% Charlotte 18% Lee 53% Source: Florida EDR: Demographic Estimating conference Database, Updated July. Chart Thirteen Population Distribution by County - Collier 29% Glades 1% Hendry 4% Charlotte 14% Lee 52% Source: Population Division, U.S. Census Bureau, Released March 22, 27. 13

Chart Fourteen Population Distribution by County - 23 Collier 33% Glades 1% Hendry 3% Charlotte 12% Lee 51% Source: Florida EDR: Demographic Estimating conference Database, Updated July. Taxable Sales Chart Fifteen 1,2 Taxable Sales 2- Monthly Averages by Year 4 Charlotte / Collier / Lee - Million 1, 8 6 4 2 Charlotte Collier Lee Glades Hendry 2 21 22 23 24 25 35 3 25 2 15 1 5 Glades / Hendry - Million 14

Source: Florida Department of Tax Research Chart Sixteen 14 Taxable Sales by Month 4 Charlotte / Collier / Lee - Million 12 1 8 6 4 2 35 3 25 2 15 1 5 Glades / Hendry - Million Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Charlotte Collier Lee Glades Hendry Source: Florida Department of Tax Research Workforce - Unemployment Rates Workforce Unemployment Rates Chart Seventeen 6. 5.5 County Unemployment Rates (%) 2- Monthly Averages; Most Recent 12 Months Data 5. 4.5 4. Charlotte Collier Lee 3.5 3. 2.5 2. 1.5 1. 2 21 22 23 24 25 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 7 Feb 7 Source: AWI 15

Chart Eighteen 9. County Unemployment Rates (%) 2- Monthly Averages; Most Recent 12 Months Data 8. 7. Glades Hendry 6. 5. 4. 3. 2. 2 21 22 23 24 25 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 7 Feb 7 Source: AWI Existing Home Sales and Median Prices Chart Nineteen Lee County Existing Single Family Sales by REALTORS Bar Chart, Scale on the left Median Housing Price line Chart, Scale on the right 1,6 $35, 1,4 1,2 1, 8 6 4 2 Mar 5 April 5 May 5 June 5 July 5 Aug 5 Sept 5 Oct 5 Nov 5 Dec 5 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan 7 Feb 7 $3, $25, $2, $15, $1, $5, Source: Florida Association of REALTORS, August 25 price estimated, Fort Myers Cape Coral MSA $ 16

Chart Twenty Collier County Existing Single Family Sales by REALTORS Bar Chart, Scale on the left Median Housing Price line Chart, Scale on the right 6 5 4 3 $6, $5, $4, $3, 2 1 Mar 5 April 5 May 5 June 5 July 5 Aug 5 Sept 5 Oct 5 Nov 5 Dec 5 Jan Feb Mar April Source: Florida Association of REALTORS, Naples Marco Island MSA May June July Aug Sept Oct Nov $2, $1, Chart Twenty-one Charlotte County Existing Single Family Sales by REALTORS Bar Chart, Scale on the left Median Housing Price line Chart, Scale on the right $ 6 $3, 5 4 3 2 1 Mar 5 April 5 May 5 June 5 July 5 Aug 5 Sept 5 Oct 5 Nov 5 Dec 5 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan 7 Feb 7 Source: Florida Association of REALTORS, Punta Gorda, Florida MSA $25, $2, $15, $1, $5, $ 17