The State of Durham's Economy in 2008
The City of Durham, along with its economic and workforce development partners, started an annual tradition in 1998 designed to measure the various components of the Durham economy. A decade later, we continue to gather as a community to assess our annual progress, celebrate our hard work, and look ahead to plan for Durham’s economic future. Throughout 2008, our nation has witnessed unprecedented drops in housing markets across the country, record lows on Wall Street, numerous business closures, bailouts, and an economic downturn that has not been felt in this country since the Great Depression. As Durham gathers on the eleventh anniversary of this event, there is a justifiable air of caution as we assess the current state of our economy, but there is also much to celebrate and much to be thankful for as we look at both Durham’s position in the region and, according to an October 14, 2008 report in Business Week, why the current state of Durham’s economy makes it “the third best city in America for riding out a recession.” Some of the following economic indicators highlight Durham’s unique position and economic outlook in 2008:
Durham continues to lead the region in announced business investments. In the first, second, and third quarters in 2008, the announced investment in Durham County was $730 million, a number that towers above all surrounding counties.
Durham’s unemployment rate remained relatively low at 5.4% (9/08) compared to both North Carolina’s (6.8%) and the U.S. (6.0%) unemployment rates during this same time..
Our population has increased by over 25% since 1998, which continues to drive economic activity.
Every year Durham becomes a more diverse community, with 45% White, 36% African American, 12% Hispanic, 4% Asian, and 3% falling into “other” categories.
Durham continues to have a young population, almost 4.5 years younger than the state average, providing talent and energy for a demanding workforce.
Our tax base is stable: 43% of the base in Durham County is from commercial properties.
Total construction permit values have never been below $640 million in any given year and reached a high of $919 million in calendar year 2006, and we are already $22 million ahead of where we were at this time last year.
In the past five years, the number of persons living downtown has increased approximately 175%. This number is expected to increase another 125% from 2008 to 2013. .
The number of residential units constructed in Downtown Durham has increased almost 200% during the past five years.
Despite our growth, housing continues to remain affordable: with Durham’s cost of living index more than 6 points below the rest of the country and the $103.23 price per square foot is the most competitive in the Triangle for a standard 8000 square foot lot.
Downtown Durham’s tax base has more than doubled since 2000.
The number of persons working downtown has increased by 12% over the last year.
Visitor spending nearly doubled from 1998 to 2008, with 73% being spent on leisure and 27% on business.
In 1996, Durham was 16% higher in total crime per 100,000 vs. Southeast peer cities (10). Twelve years later, Durham has a lower crime rate than its peer cities, and 10% below national peer cities (29).
The number of persons employed in Durham County has grown 13% in 10 years, despite the current financial crises and national business closures.continues to grow at a very healthy pace, 11.8% since 2000.
Even while basking in this good news, we must continue to think about the future and ask ourselves the question: Where will we be in the year 2018?
We commend the community for continuing to tackle difficult and challenging issues in the areas of transportation, natural resources, conservation and green development, affordable housing, arts and culture, higher education, workforce development and poverty. How we, as a community, choose to address these and other issues in 2009 and beyond will define The State of Durham’s Economy in the region and in the nation for years to come.