ECONOMIC INDICATORS FOR GREATER CHEYENNE

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1 Volume XXXII - Number 3 September ECONOMIC INDICATORS FOR GREATER CHEYENNE Wyoming Center for Business & Economic LCCC 1400 East College Drive Cheyenne, WY wyomingeconomicdata.com

2 Table of Contents Front Matter Preface... ii Economic Indicators for the Second Quarter of Overview... 2 Labor Market... 4 General Business Activity... 8 Government Finances Financial Sector Residential Construction Commercial Property Vacancies Residential Housing Market Apartment Vacancies Demographics and Tourism Detailed Tables Cheyenne/Laramie County Profile Data Sources Communications WCBEA Phone: Editor drogers@lccc.wy.edu Staff jmcguire@lccc.wy.edu Website: Mailing Address: Wyoming Center for Business and Economic LCCC 1400 E College Drive Cheyenne, WY Editor... Denise Rogers Research Assistance... Jo McGuire Editorial Assistance... R.T. O Gara Cover Design... Cheyenne LEADS The articles appearing in this publication represent the opinions of the author and do not necessarily reflect the views of funding agencies and organizations. Duplication or quotation of material in this publication is welcomed; we request that you credit

3 Preface Hard copies of this publication are no longer available. This publication and past publications are available in PDF format on our website: Sign up for notification of publication releases at or send us an at LCCC sincerely appreciates past and continuing cooperation of the entities listed in our data sources throughout the report. This report would not be possible without the financial support of the Cheyenne-Laramie County Economic Development Joint Powers Board and Cheyenne LEADS. ii

4 Economic Indicators Analysis 1

5 Economic Indicators for the Second Quarter Overview The data from the second quarter of confirm that Laramie County s economy continued to weaken. This decline remains relatively modest compared to other counties in the state, and the state as a whole, largely because our local economy is protected by the stabilizing influence of significant public sector employment. Again this quarter, labor market indicators in Laramie County were down compared to a year ago. From the second quarter of to the second quarter of there was a decline in the number of jobs, and an increase in the number of unemployed workers. While we have also seen an increase in the unemployment rate over the last year, it is important to remember that Laramie County s unemployment rate remained below both the national and the state unemployment rates through the second quarter of, and is still at or below what economists call full employment. The general level of economic activity as measured by retailed sales -- showed a decline. Estimated retail sales were down 13.5 percent from one year ago and down 5.2 percent from the first to the second quarter of. Oil production was up in Laramie County in the second quarter of compared to both the first quarter of this year (4.2 percent) and one year ago (14.5 percent). The number of active wells in the county also increased -- by 11.0 percent over the last year. The number of spuds defined as a newly drilled oil well is an indicator of future activity in this sector. In there were 115 spuds in Laramie County. In the number of spuds fell to 62 (-46.1 percent) and year-todate only three spuds have been drilled. Both sales tax collections and tax receipts to local government entities declined over the last year. Tax collections declined by 14.7 percent and tax receipts declined 14.5 percent from the second quarter of to the second quarter of. As Laramie county officials have indicated, sales tax revenue from both mining operations and wholesale trade, (largely related to the mining activity), was down significantly. In Laramie County mining operations are largely made up of oil and gas activity. Residential construction was relatively robust while the number of single-family building permits fell over the last year in the City of Cheyenne, there was evidence of a significant level of residential construction in the pipeline. According to the City of Cheyenne Planning Department, there were approximately 600 single-family platted lots for which the plat was approved from through the first quarter of. The Laramie County Planning Commission reported that about 45 single-family platted lots received plat approval in, and an additional 50 single-family platted lots were approved in the first two quarters of in the County. In addition to this single-family housing development, building permits for a total of 93 multi-family apartment units were issued in the second quarter of. 2

6 There was a significant increase in the value of authorized construction in the City of Cheyenne in the second quarter of the single largest part of this increase was the almost $12 million for the renovation of the Herschler Building. The continued threat to the local economy is the impact of sustained low energy prices and their effect on the state economy. The state of Wyoming has absorbed significant budget cuts for the biennium that began on July 1, and faces the prospect of additional cuts when the Legislature convenes in January This report contains detailed information and analysis on a wide range of economic indicators for the Greater Cheyenne area. Please feel free to contact the WCBEA@LCCC with any questions. 3

7 Labor Market The June Economic Indicators report described a weakening labor market for the first quarter of. Data from the second quarter of confirmed that, again this quarter, labor market indicators in Laramie County are down compared to a year ago. From the second quarter of to the second quarter of, Local Area Unemployment Statistics (LAUS) data showed a decrease of 1,337 jobs (-2.8 percent) and Current Employment Statistics (CES) data a decrease of 200 jobs (-0.4 percent). According to the LAUS data, 460 jobs were lost from first quarter to second quarter (-1.0 percent), while CES data showed an increase of 533 jobs (1.2 percent). This appears contradictory, but it s important to remember the difference between the LAUS data and the CES data. LAUS data are based on a survey of households and CES data are based on a survey of employers. CES data reflect a count of jobs, not workers. The increase in jobs over the last quarter may have been an increase in multiple job holding, i.e. one person with more than one job. The number of unemployed workers rose over the last year, from 1,796 in the second quarter of to 1,990 in the second quarter of (10.8 percent), but fell from the first quarter to the second quarter of. The number of unemployed workers fell from 2,249 in the first quarter of to 1,990 in the first quarter of this year (-11.5 percent). The unemployment rate for Laramie County rose over the last year, from 3.7 in the second quarter of to 4.2 in the second quarter of. However, the unemployment rate fell from 4.6 percent in the first quarter of to 4.2 percent in the second quarter of. The unemployment rate reported in Table 1 is an average monthly unemployment rate for the quarter. For the second quarter of it is worth noting that the monthly unemployment rate for both April and May was 4.0 percent, but this rose to 4.5 percent in June. It s too early to know if this is anything more than an isolated one month increase. Over the last quarter initial unemployment claims were down and the number of help wanted ads were up. Initial unemployment claims fell from a monthly average of 61 in the second quarter of to 56 in the second quarter of (-7.6 percent). Claims also fell over the last quarter, from a monthly average of 95 in the first quarter of to 56 in the second quarter (-40.1 percent). Help wanted ads increased over the last quarter, from 554 in the first quarter of to 760 in the second quarter (37.0 percent) but were down 17.9 percent over the last year, from 925 in the second quarter of to 760 in the second quarter of. See Table 1 below for additional details. 4

8 Figure 1. Laramie County Employment, 1998-, Monthly Averages In Thousands Source: WCBEA from Bureau of Labor Statistics, Current Employment Statistics (CES) Figure 2. Laramie County Unemployment, 1998-, Monthly Averages 3,500 3,000 2,500 2,000 1,500 1,000 1,466 1,414 1,505 1,656 1,738 1,917 1,883 1,762 1,628 1,502 1,700 2,836 3,354 2,918 2,747 2,319 2,115 1,888 2, Source: WCBEA from Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)

9 Figure 3. Laramie County Initial Unemployment Claims, 1998-, Monthly Averages Source: WCBEA from Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS) Figure 4. Help Wanted Ads, Cheyenne 2010-, Monthly Totals Source: WCBEA from Wyoming Department of Workforce Services 6

10 Table 1. Laramie County Labor Market Avg Monthly Civilian Labor Force (LAUS) 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / 48,837 48,806 48,383 47, Avg Monthly Employment (LAUS) 46,790 47,010 46,133 45, Avg Monthly Employment (CES) 47,067 47,100 46,367 46, Avg Monthly Unemployment (LAUS) Avg Monthly Unemployment Rate (LAUS) Avg Monthly Initial Unemployment Claims (LAUS) 2,047 1,796 2,249 1, Avg Monthly Help Wanted Ads Source: Labor Market statistics are compiled from two major sources: Current Population Survey (CPS) and Current Employment Statistics (CES). Local Area Unemployment Statistics (LAUS) are estimated based on CPS data which are collected through household surveys in which individuals are reported as employed, unemployed or not in the labor force. These data include employment for both agriculture and nonagricultural industries. CES data are based on establishment (employer) records compiled through monthly surveys of nonfarm employers. Individuals who worked in more than one establishment, full or part-time, are counted each time their names appear on payrolls. Data for help wanted ads come from Wyoming Department of Workforce Services. 7

11 General Business Activity Table 2 provides some basic indicators of the level of economic activity in Laramie County. Estimated retail sales for second quarter were $282,947,000. This was a decrease of 13.5 percent from one year ago and a decrease of 5.2 percent from the first quarter to the second quarter of. While retail sales were down, a closer examination of the data reveals some hopeful signs. Retail sales were up each month during the second quarter from April to May to June. The four subsectors that are consistently the top contributors to total retail sales in Laramie County are: Automobile Sales, Building Material and Garden, General Merchandise Stores, and Eating and Drinking Places. Retail sales in three of these four subsectors, (all except General Merchandise Stores), rose from the first to the second quarters of. Average monthly enplanements defined as commercial passenger boardings -- dropped to 128 in the second quarter of. This was a decline of 22.2 percent from the first quarter of and a yearover-year decline of 39.4 percent. As has been heavily reported, efforts to find additional airline carriers to serve the area are ongoing but regulatory issues continued to complicate that effort. Auto registrations were down 2.3 percent from one year ago, but rose from a monthly average of 2,846 in the first quarter to 3,270 in the second quarter of. Bankruptcies were flat compared to one year ago. In both the second quarter of and the second quarter the average monthly number of bankruptcies was 16. Bankruptcies rose over the last quarter, from a monthly average of 9 in the first quarter to 16 in the second quarter of. New this quarter is expanded coverage of the oil sector in Laramie County (table 2A). Data on oil production and oil prices were first reported in the December Economic Indicators report. In this current issue data on the number of active wells, permits, and spuds have been added. Oil prices rose over the last quarter from $33 per barrel in the first quarter of to $45 in the second quarter, but were down 21.5 percent from one year ago. Oil production in Laramie County rose during the second quarter of it was 4.2 percent higher than in the first quarter of, and 14.5 percent higher than it was a year ago. The number of active wells in the county also increased -- from a monthly average of 229 in the first quarter to 243 in the second quarter of (6.0 percent). The number of active wells rose 11.0 percent over the last year. The number of spuds defined as a newly drilled oil well is an indicator of future activity in this sector. In there were 115 spuds in Laramie County. In the number of spuds fell to 62 (-46.1 percent) and year-to-date only three spuds have been drilled. 8

12 Figure 5. Laramie County Retail Sales, 1998-, Monthly Totals 250 Millions Source: WCBEA from Wyoming Department of Revenue, Sales and Use Tax Report of Distribution Amounts by Entity, by Tax Type and Total Distribution by Minor Class and by County. Notes: Retail sales are estimated by WCBEA from Laramie County specific purpose sales and use tax collections. The significant increase in retail sales in October 2013, followed by a significant decline in November 2013 was due to large retail tax collections on purchases of peripheral computer equipment and software by data centers under construction in the county that were later deemed tax exempt and refunded. 9

13 Figure 6. Enplanements, Cheyenne Airport, 1998-, Monthly Totals Source: WCBEA from Cheyenne Regional Airport Figure 7. Laramie County Bankruptcies, 1998-, Monthly Averages Source: WCBEA from U.S. Clerk of Bankruptcy Court

14 Table 2. General Business Activity in Laramie County 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Total Retail Sales ($000) 300, , , , Avg Monthly Enplanements - Cheyenne Regional Airport Avg Monthly Auto Registrations New & Used ,261 3,348 2,846 3, Avg Monthly Bankruptcies Sources: Retail sales from WCBEA analysis of Wyoming Department of Revenue, Sales and Use Tax Report of Distribution Amounts by Entity, by Tax Type and Total Distribution by Minor Class and by County. Other data sources include: WCBEA from Cheyenne Regional Airport, Laramie County Clerk, U.S. Clerk of Bankruptcy Court. Table 2A. Oil Activity in Laramie County 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Avg Monthly Oil Production (Barrels) 299, , , , Avg Monthly Oil Prices, Per Barrel ($) Avg Monthly Active Wells Avg Monthly Applications for Permit to Drill % Chg % Chg % Chg 2013 YTD Spuds N/A Notes: 1 Historical data are not reported for Applications for Permit to Drill due to recent changes in the permit rules. Prior to February, permits were active for a period of 1 year. Since February, permits are active for a period of 2 years. 2 Spuds refer to new wells. To spud a well means to begin drilling operations. Sources: Wyoming Oil and Gas Conservation Commission and Cushing, OK, West Texas Intermediate crude oil spot price. 11

15 Government Finances Table 3 provides information on tax collections and receipts. For the second quarter in a row, total tax collections and tax receipts to local government entities were down down quarterly, from the first to the second quarter of, down year-over-year, and down over the two year period from the second quarter of to the second. Both sales tax collections and tax receipts to local government entities declined over the last year. Tax collections declined by 14.7 percent and tax receipts declined 14.5 percent from the second quarter of to the second quarter of. The quarter to quarter decrease was also notable. Tax collections declined by 8.1 percent from the first to the second quarter of, while tax receipts to local government entities declined by 8.0 percent during this same time period. As Laramie county officials have indicated, sales tax revenue from both mining operations and wholesale trade, (largely related to the mining activity), is down significantly. Mining operations is the category that includes, among other things, oil and gas drilling, exploration, servicing and support activities for this industry. In Laramie County mining operations is largely made up of oil and gas activity. Lodging tax receipts rose by 34.4 percent from the first to the second quarter of but fell by 10.5 percent annually, from the second quarter of to the second quarter of. The year-over-year decrease in these lodging tax receipts coincided with the decline in oil and gas activity within Laramie County. Table 3. Laramie County Government Revenues 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / 4%, 1%, & Lodging Tax Collections ($000) 27,095 26,533 24,627 22, Actual Receipts to County Entities ($000) 1 11,637 11,409 10,604 9, % Sales & Use Tax Receipts ($000) 5,317 5,203 4,824 4, Lodging Tax Receipts 346, , , , % Special Purpose Tax Receipts ($000) Retail Sales - Eating and Drinking Places ($000) 5,310 5,215 4,821 4, ,373 47,897 44,337 45, Source: WCBEA analysis of Wyoming Department of Revenue, Sales and Use Tax Report of Distribution Amounts by Entity, by Tax Type and Total Distribution by Minor Class and by County. Notes: 1 Includes the 4% Sales and Use Tax, the 1% Sales and Use Tax, the Out of State Use Tax, and the Out of State Sales Tax. The percentage of sales & use tax collections distributed to counties is 31%. Data reported represent quarterly totals. 12

16 Figure 8. Laramie County 1% Optional Sales and Use Tax Receipts, 1998-, Monthly Averages $1,900,000 $1,700,000 $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 $829,441 $922,207 $976,514 $1,050,464 $1,131,895 $1,139,444 $1,171,467 Source: WCBEA from Wyoming Department of Revenue, Sales and Use Tax Report of Distribution Amounts by Entity. Figure 9. Laramie County Lodging Tax Receipts, 1998-, Monthly Totals $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 -$20 -$40 -$60 Thousands $1,210,034 $1,268, Source: WCBEA from Wyoming Department of Revenue, Sales and Use Tax Report of Distribution Amounts by Entity. Notes: 2% lodging tax effective 7/1/87 through 3/31/03 3% lodging tax effective 4/1/03 through 3/31/07 4% lodging tax effective 4/1/07 $1,255,550 $1,273,843 $1,210,767 $1,232,911 $1,445,489 $1,489,900 $1,590,262 $1,920,851 $1,841, $1,543,678 13

17 Financial Sector Table 4 provides information on credit unions and commercial banks in Laramie County. Deposits and loans from Laramie County credit unions grew this quarter. Deposits were up 24.4 percent over the last year and 16.5 percent from the first to the second quarter of. Credit union loans grew by 28.3 percent over the last year and 20.3 percent from the first to the second quarter of. Data on total deposits in all FDIC-insured institutions (commercial banks) in Laramie County are available only on an annual basis. Total deposits in commercial banks were up 12.9 percent from 2013 to, and up 8.8 percent from to. FY data will be available for the December Economic Indicators report. Table 4A shows commercial banks, their total deposits, and their market share. This table is updated annually. New data will be available in the December issue of Economic Indicators. The largest bank in Laramie County is Wells Fargo Bank with $347,458,000 in deposits and a 22.5 percent market share. The five largest banks together have a 66.6 percent share of the market. That is, these five largest banks taken together hold two-thirds of all deposits in Laramie County. Figure 10. Total Loans and Deposits, Cheyenne Area Credit Unions, Millions Total Loans Total Deposits Source: WCBEA from National Credit Union Administration data. Notes: As of January 1, 2000, one Credit Union discontinued reporting statistics. Beginning in 2003, the data reflect two additional credit unions. 14

18 Figure 11. Delinquencies, Cheyenne Area Credit Unions, Millions Source: WCBEA from National Credit Union Administration data. Notes: As of January 1, 2000, one Credit Union discontinued reporting statistics. Beginning in 2003, the data reflect two additional credit unions. Figure 12. Total Deposits, Laramie County Banks, Thousands Source: WCBEA from Federal Deposit Insurance Corporation (FDIC) Survey of Deposits (SOD). Data are available on an annual basis and represent deposits on June 30 of each year

19 Table 4. Laramie County Financial Institutions Credit Union Data 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Deposits ($000) 1,106,778 1,170,802 1,250,025 1,456, Loans ($000) 903,339 1,023,303 1,091,493 1,312, Net Income YTD ($) 5,559,381 6,173,965 5,144,101 4,811, N/A Delinquencies ($) 7,496,887 6,574,628 6,242,271 7,961, Memberships 112, , , , Banking Data FY 2012 FY 2013 FY FY 3 Year % Chg 2 Year % Chg 1 Year % Chg FY FY FY FY FY - FY Deposits ($000) 1 1,350,098 1,366,555 1,418,528 1,543, Sources: WCBEA from National Credit Union Administration data and Federal Deposit Insurance Corporation. Notes: 1 Federal Deposit Insurance Corporation (FDIC) Survey of Deposits (SOD). Data are available on an annual basis and represent deposits on June 30 of each year. The significant increases in credit union deposits, loans, delinquencies and memberships are attributable to BLUE Federal Credit Union. In late, Warren Federal Credit Union merged with Community Financial Credit Union and became BLUE Federal Credit Union. 16

20 Table 4A. Banking Deposit Market Share, Laramie County Institutions, State No. of Branches Inside of Laramie Deposits in Laramie County Institution Market Institution Name (Hqtrd) County (000s) Share Share Wells Fargo Bank, National Association SD 2 347, % 22.5% ANB Bank CO 2 254, % 39.0% First Interstate Bank MT 2 167, % 49.9% Wyoming Bank & Trust WY 2 137, % 58.8% Bank of the West CA 3 120, % 66.6% Wyoming State Bank WY 2 103, % 73.3% U.S. Bank National Association OH 2 89, % 79.1% Jonah Bank of Wyoming WY 1 83, % 84.5% Security First Bank WY 2 51, % 87.8% Platte Valley Bank WY 2 41, % 90.5% Cheyenne State Bank WY 1 39, % 93.0% Pinnacle Bank - Wyoming WY 2 33, % 95.2% Points West Community Bank NE 1 24, % 96.8% Farmers State Bank WY 1 19, % 98.1% Oregon Trail Bank WY 1 10, % 98.7% FirsTier Bank NE 1 10, % 99.4% Central Bank and Trust WY 1 8, % 100.0% Armed Forces Bank, National Associatio KS % 100.0% All Institutions 1,543, % Source: WCBEA from FDIC Deposit Market Share Report. data represent 18 institutions and 29 branch banks. Note: Banking data reflect deposits as of June 30,. Cumulative Market 17

21 Residential Construction Tables 5 and 5A show data for new residential and commercial construction in Laramie County and the City of Cheyenne. The number of single-family residential building permits issued rose from the first to the second quarter of. In the City of Cheyenne the number of single-family permits issued increased from 32 in the first quarter to 47 in the second quarter of (46.9 percent). Outside Cheyenne, the number of single-family building permits also increased, from 30 in the first quarter to 53 in the second quarter of (76.7 percent). These increases followed a typical first to second quarter seasonal pattern. The annual changes in single-family building permits were mixed. In the City of Cheyenne single-family building permits fell over the last year from 55 in the second quarter of to 47 in the second quarter of (-14.6 percent). Outside Cheyenne, single-family building permits rose, from 38 in the second quarter of to 53 in the second quarter of (39.5 percent). Building permits for a total of 93 multi-family apartment units were issued in the second quarter of. These were the first multi-family building permits defined as larger than four-units -- to be issued in Laramie County since Core Logic data, (Table 7 on page 31), showed that 62 newly constructed homes were sold in the second quarter of. This was a 29.2 percent increase from the first quarter to the second quarter of, but a 24.4 percent decrease from a year ago. The average new construction sales prices increased over the last quarter from $298,766 in the first quarter of to $319,700 in the second quarter (7.0 percent). The year-over-year change was also positive from $286,591 in the second quarter of to $319,700 in the second quarter of (11.6 percent). The average sales price of an existing home fell over the last quarter from $251,012 in the first quarter to $241,135 in the second quarter of (-3.9 percent). However this average sales price was 7.5 percent higher than it was a year ago. In the second quarter of the average sales price of an existing home was $224,336. The Utilities section of Table 5 presents data on utility usage in Laramie County. Average monthly commercial and industrial power usage increased 5.3 percent from the first to the second quarter of and 16.9 percent from one year ago. This annual increase again reflects the continued ramp up of the newer data centers in Laramie County. The rate of growth in average monthly metered water taps was again well below 1.0 percent for both the Cheyenne Board of Public Utilities and the South Cheyenne Water & Sewer District from the first to the second quarter of. These water taps are a good indicator of new household formation since most new taps are residential. This low rate of increase remains consistent with the very low population growth. 18

22 Table 5. Laramie County Construction Construction 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Total Single-Family Bldg Permits - City Total Single-Family Bldg Permits - Rural Avg Monthly Building permits (All Construction) - City Avg Monthly Septic Permits - Rural Avg Monthly Value of Authorized Construction - City ($000) Avg Monthly Value New Residential Construction - City ($000) Utilities Avg Monthly Commercial & Industrial Power Usage ('000,000) Kwh 9,930 15,548 5,036 13, ,018 4,084 2,227 4, Avg Monthly Residential Gas Usage ('000) Mcf Avg Monthly Metered Water Taps (CBPU) 23,045 23,292 23,451 23, Avg Monthly Metered Water Taps (SCWSD) 3,324 3,335 3,338 3, Sources: City of Cheyenne Building Safety Department Laramie County Planning & Development Cheyenne Board of Public Utilities (CBPU) Black Hills Energy Corporation South Cheyenne Water & Sewer District (SCW&SD) Note: 1 Data include building and non-building permits. 19

23 Table 5A. Laramie County New Residential Construction, Number of Permitted Units 2012 Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units Single-Family Manufactured Duplex Tri & Four Plex Multi-family Total Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units Single-Family Manufactured Duplex Tri & Four Plex Multi-family Total Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units Single-Family Manufactured Duplex Tri & Four Plex Multi-family Total Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units Single-Family Manufactured Duplex Tri & Four Plex Multi-family Total Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units Single-Family Manufactured Duplex Tri & Four Plex Multi-family Total Source: WCBEA from Laramie County Planning & Development. 20

24 Figure 13. City of Cheyenne Single-Family Building Permits, 2011-, Monthly Totals Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: WCBEA from City of Cheyenne Building Safety Department Figure 14. City of Cheyenne Commercial Electric Power Sales, 1998-, Monthly Totals 60 Millions Source: WCBEA from Black Hills Power Corporation. 21

25 Figure 15. City of Cheyenne Metered Water Taps, 1998-, Monthly Average 23,500 23,000 22,500 22,000 21,500 21,000 20,500 20,000 19,500 19,000 18,500 18,000 17,500 18,890 19,100 19,193 19,355 19,532 19, ,246 Source: WCBEA from Cheyenne Board of Public Utilities. 20,721 21,225 Figure 16. South Cheyenne Metered Water Taps, 1998-, Monthly Average 21,600 21,678 21,929 22,048 22,338 22, ,863 23,104 23,336 23,500 3,400 3,300 3,200 3,100 3,000 2,900 2,800 3,045 3,067 3,094 3,112 3,131 3,156 3, ,210 Source: WCBEA from South Cheyenne Water & Sewer District. 3,250 3,284 3,293 3,300 3, ,306 3,310 3,317 3,325 3,335 3,339 22

26 Figure 17. City of Cheyenne Total Building Permits, 2011-, Monthly Totals Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: WCBEA from City of Cheyenne Building Safety Department. Note: Data include building and non-building permits

27 Commercial Property Vacancies Data on commercial property vacancies for the second quarter of are found in Table 6. By the end of second quarter of, there were 117 active properties on the local commercial real estate market, representing no change from the first quarter of. Year-over-year saw a decline of 8.6 percent or a decrease of 11 properties. Over the current quarter, the number of available warehousing units fell 11.1 percent (-3), but the total square footage increased by 2.6 percent and the overall vacancy rate increased from 8.3 percent to 8.6 percent by the end of the second quarter. The average lease rate remained relatively flat at $7.69/sf as compared to $7.62/sf at the end of the first quarter. Total vacant square footage ended the quarter at 433,384 sf as compared to 467,720 sf at the end of the second quarter of, a decline of 7.3 percent. The number of available retail properties remained relatively unchanged from one quarter ago (-1) while the overall vacancy rate increased from 7.1 percent to 7.8 percent by the end of the current quarter. The amount of vacant retail space ended the quarter at 304,406 sf as compared to 277,288 sf at the end of first quarter. Several larger downtown properties that were formerly vacant are now occupied, including the sites of the former Cheyenne Brewing company (now Accomplice), Mitchell s BBQ (now El Poblano) and The Cheyenne Club (now Flippers Arcade). However, the amount of available retail space was significantly impacted with the closing of the Cole Safeway store (44,358 sf). While the number of available office properties increased 11 percent by the end of second quarter (+4 units), the amount of total square footage fell by 20,225 sf and the vacancy rate for this property type dropped to 9.0 percent by the quarter s end. One year ago, the vacancy rate was 11.6 percent. Total vacant office space by the quarter s end stood at 228,062 sf whereas first quarter s total was 261,183 sf by comparison. The sale of the Hynds building was completed during the first quarter of, significantly impacting the vacant square footage for sale and lease (39,000 sf). Renovations on this building are expected to begin in early By the end of the current quarter, the volume of available medical space was 50,823 sf. The vacancy rate for this property type stood at 11.1 percent up from just 4 percent one year ago. NOTE: For a complete listing of available commercial properties in the Greater Cheyenne area and discussion of changes in the commercial building market over the second quarter of, please see the Wyoming Center for Economic LCCC s homepage ( and click on Commercial Property Opportunities. 24

28 Table 6. Commercial Property for Sale and Lease, Cheyenne, 1,500 sq. ft. and up, Property # Square Avg. Min./Max. Type Properties Footage Lease Rate Rate Third Quarter 2013 Vacancy Rate Warehouse ,444 $ % FR Retail ,146 $ % FR Office Space ,838 $ % FR Fourth Quarter 2013 Warehouse ,724 $ % FR Retail ,984 $ % FR Office Space ,964 $ % FR First Quarter Warehouse ,203 $ % FR Retail ,281 $ % FR Office Space ,456 $ % FR Second Quarter Warehouse ,235 $ % FR Retail ,561 $ % FR Office Space ,057 $ % FR Third Quarter Warehouse ,778 $ % FR Retail ,471 $ % FR Office Space ,816 $ % FR Fourth Quarter Warehouse ,928 $ % FR Retail ,530 $ % FR Office Space ,602 $ % FR First Quarter Warehouse ,283 $ % Retail ,238 $ % Office Space ,436 $ % Second Quarter Warehouse ,720 $ % Retail ,238 $ % Office Space ,708 $ % Third Quarter Warehouse ,488 $ % Retail ,383 $ % Office Space ,517 $ % Fourth Quarter Warehouse ,356 $ % Retail ,084 $ % Office Space ,949 $ % First Quarter Warehouse ,238 $ % Retail ,764 $ % Office Space ,183 $ % Second Quarter Warehouse ,384 $ % Retail ,346 $ % Office Space ,958 $ % Source: WCBEA from Laramie County Assessor property database. Note: FR=final revision. Statistics for the years 2013 and are now final and will no longer be revised going forward. Vacancy rates for and are based upon recently revised baseline numbers. 25

29 Residential Housing Market Table 7 provides data on the local residential housing market, both city and rural areas. The first part of the table presents 14 different data series measuring residential housing activity throughout Laramie County. These statistics are from Core Logic and provide a comprehensive look at the residential housing market. Below the Core Logic data are statistics from the Cheyenne Board of Realtors (CBR). Both data sets are included because together they give a more complete picture of the local housing market. Core Logic data are drawn from a considerably larger sample than CBR statistics and should provide a higher degree of accuracy. The average number of monthly home sales for new and existing homes increased this quarter, from 170 in the first quarter to 233 in the second quarter of, an increase of 37.3 percent. This increase followed a consistent seasonal pattern from the first to the second quarters of the year. Monthly home sales decreased from a year ago, from a monthly average of 273 in the second quarter of to 233 in the second quarter of (-14.5 percent). The average sales prices for new and existing homes decreased from $248,383 in the first quarter to $245,487 in the second quarter of (-1.2 percent). The average sales price rose over the last year from $226,400 in the second quarter of to $245,487 in the second quarter of (8.4 percent). As reported in the Residential Construction section of this report, the number of new home sales increased from 48 in the first quarter to 62 in the second quarter of (29.2 percent). The average sales price of a new home increased from $298,766 to $319,700 (7.0 percent) over the last quarter. The year-over-year change was also positive from $286,591 in the second quarter of to $319,700 in the second quarter of (11.6 percent). These large increases were, in part, a function of the small number of transactions. With only 62 new houses sold in the second quarter, (an average of ~20 per month), a few expensive homes can have a big effect on the average sales price. The average number of monthly sales of existing homes increased from 421 in the first quarter to 591 in the second quarter of (40.4 percent). The average selling price of existing homes increased over the last year, from $224,336 in the second quarter of to $241,135 (7.5 percent) in the second quarter of. Total foreclosure initiations rose this quarter, from 15 in the first quarter to 23 in the second quarter of. However, foreclosure initiations were down over the last year, from 47 in the second quarter of to 23 in the second quarter of (-51.1 percent). The foreclosure rate defined as the percentage of first lien mortgages that are in some stage of the foreclosure process fell to 0.7 percent this quarter. This is down from 0.8 percent in the first quarter of and down from 0.9 percent one year ago. In other positive news, the number of negative equity loans declined over the last year (-18.6 percent) and over the last quarter (-20.6 percent). The number of 90+ day delinquent loans declined as well down 8.9 percent over the last year and down 2.8 percent over the last quarter. The Cheyenne Board of Realtors reported a 16.8 percent increase in the supply of homes for sale in the City of Cheyenne and an 8.4 percent increase in the supply of homes for sale in the rural part of Laramie County from the first to the second quarter of. This increase from the first to the second quarter followed the typical seasonal pattern. The supply of homes for sale was also up over the last year a 2.3 percent increase in Cheyenne and a 9.5 percent increase in rural Laramie County. 26

30 Data from the Cheyenne Board of Realtors indicate that from 2010 to there has been a continual decrease in the annual average monthly number of housing units available for sale in the City of Cheyenne and Laramie County from 745 to 399 (-46.4 percent). Over the first two quarters of the number of housing units available for sale has increased but not significantly. Core Logic data indicate that there has been an increase in total home sales each year, with the exception of, from 2,040 in 2010 to 2,767 in (35.8 percent). Given this sustained decrease in supply, (homes available for sale), and increase in demand we would expect to see both a sharp increase in home prices and increased housing development activity. While prices have increased from an average sales price of $200,314 in 2010 to an average sales price of $231,178 in, this amounts to an average increase of 3.1 percent per year, hardly a notable increase. The number of building permits issued during this time period fluctuated. It was as high as 550 in 2010, and then dropped to a low of 277 in 2011, and, then rose again in to 370. In the first two quarters of building permits have been issued for 169 new single-family housing units. This evidence of a relatively robust housing market led us to wonder if there is significant housing development activity in the pipeline. Information from the City of Cheyenne and Laramie County Planning departments supported this idea. According to the City of Cheyenne Planning Department, there were approximately 600 single-family platted lots for which the plat was approved from through the first quarter of. According to the Laramie County Planning Commission, about 45 single-family platted lots received plat approval in along with a mobile home park that includes 44 lots. During the first two quarters of, the Commission approved about 50 single-family platted lots. 27

31 Figure 18. Laramie County Residential Units Sold, 2008-, Monthly Totals Condo Units Sold Rural Units Sold City Units Sold Total Units Sold Source: WCBEA from Cheyenne Board of Realtors. Figure 19. Laramie County Average City and Rural Residential Sale Prices, ,000 Sales Price 375, , , , , , , , , , , ,000 75,000 Source: WCBEA from Cheyenne Board of Realtors Avg. City Price Avg. Rural Price 28

32 Apartment Vacancies The vacancy rate fell from 3.0 percent in the first quarter to 2.7 percent in the second quarter of. One year ago, in the second quarter of, the vacancy rate was 0.8 percent. Table 7 below presents the above data. Figure 20. City of Cheyenne Unfurnished Apartment Vacancies, 1998-, Monthly Totals Source: WCBEA from Wyoming Eagle Tribune. 29

33 Figure 21. City of Cheyenne Sampled Apartments Vacancy Rate, 1998-, Monthly Source: WCBEA large apartment complex sample. 30

34 Table 7. Laramie County Residential Housing Market Core Logic Total Sales 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Total Sales Avg Monthly Sales Avg Sales Price 223, , , , New Construction Total Sales Avg % of Total Sales 10.6% 10.0% 9.7% 8.8% Avg Sales Price 291, , , , Resales Total Sales Avg Sales Price 222, , , , Foreclosures Total Foreclosure Initiations Avg Monthly Foreclosure Rate 0.9% 0.9% 0.8% 0.7% Additional Data Total Short Sales Avg Short Sales Price 147, , , , Avg Monthly Negative Equity Loans Avg Monthly 90+ Day Delinquency Cheyenne Board of Realtors Avg Monthly Residentials Sold City Avg Monthly Units For Sale Avg Sale Price ($) 207, , , , Avg Days on Market Rural Avg Monthly Units For Sale Avg Sale Price ($) 308, , , , Vacancies 2 Avg Monthly Furnished Apartments Avg Monthly Unfurnished Apartments Avg Monthly Homes and Duplexes Avg Monthly Mobile Homes Sampled Apartments Vacancy Rate 3 1.4% 0.8% 3.0% 2.7% Avg Monthly Sample Sizes Sources: WCBEA from Core Logic and Cheyenne Board of Realtors. Notes: Unless otherwise noted, data represent quarterly averages. 1 The number of mortgages where the lender has initiated foreclosure proceedings and it has been made known through public notice. 2 The percentage of first lien mortgages that are in some stage of the foreclosure process. 3 The number of mortgages that are in negative equity, calculated as the difference between the current value of the property and the mortgage debt on the property. 4 The number of mortgages delinquent by 90 days or more, including loans that are real-estate owned (in the possession of a lender as a result of foreclosure) or in foreclosure. 5 Average days on market calculated as number of days from the listing date to the date the property is under contract. 6 Vacancy data are obtained from the Wyoming Tribune Eagle. 7 Vacancy rate is calculated from WCBEA large apartment complex sample. 31

35 Demographics and Tourism The tables below provide data on current demographic and tourism trends within Laramie County. Table 8 presents information on human and social services and school enrollments in Laramie County and Table 9 presents tourism indicators. The number of people sheltered at the Safehouse increased in the second quarter it was 30.7 percent higher than in the first quarter of, and 34.2 percent higher than one year ago. The Comea Shelter also saw an increase in use. This shelter recorded a 16.2 percent increase from first to second quarter of, and a 20.8 percent annual increase from the second quarter of to the second quarter of. There has been a fairly consistent decline over the last two years in the Department of Family Services (DFS) Temporary Assistance for Needy Families (TANF) distributions. These distributions rose in first quarter of, but continued the downward trend in the second quarter. Distributions fell by 6.8 percent from the first to the second quarter of. Over the last year distributions decreased by 11.3 percent. Tourism numbers were mixed over the last year. From the second quarter of to the second quarter of, each of the following increased: trolley ridership (14.1 percent), the number of visitors to the Pine Bluffs Information Center (11.9 percent), and the number of paid visitors to the Old West Museum (41.9 percent). The number of Visit Cheyenne walk-ins (-26.9 percent) and the 1-25 Visitor Center users (-3.4 percent) decreased. Table 8. Laramie County Demographics Human Services 1Q 2 Year % Chg 1 Year % Chg Qtrly % Chg / - / - 1Q/ - / / / Emergency Room Visits 3,390 3,427 3,397 3, Safehouse - # Sheltered Comea Shelter - Nights lodging 1,886 2,118 2,200 2, DFS/TANF Distributions School Enrollments Laramie County School District #1 13,128 13,403 13,666 13, Laramie County School District # , Private Schools Home Schooling Total School Enrollment 14,826 15,185 15,379 15, LCCC Enrollment - FTE (Laramie County Sites) 2,030 1,996 2,702 N/A LCCC Enrollment - Headcount (Laramie County) 3,893 3,677 4,800 N/A Notes: All data represent monthly averages for the quarter. N/A Not available Sources: WCBEA from Cheyenne Regional Medical Center, Safehouse Services, Comea Shelter, Wyoming Department of Family Services, Laramie County School District #1, Laramie County School District #2, and Laramie County Community College 32

36 Table 9. Laramie County Tourism Data 2 Year % Chg 1 Year % Chg Qtrly % Chg 1Q / - / / - / 1Q/ - / Avg Monthly Accomodations Data Available Rooms 75,083 75,894 75,571 80, Nights Occupied 52,929 51,276 32,825 47, Occupancy Rate (%) Average Room Rate $83.31 $87.64 $84.70 $ Avg Monthly Visitor Data Visit Cheyenne Walk-in Count 5,484 4,879 1,454 3, Trolley Ridership 2,460 2, , Pine Bluffs Info Center 12,356 7,368 5,135 8, I-25 State Visitor Center 15,763 16,631 4,799 16, Old West Museum Paid Visitor 1,501 1, , Source: WCBEA from Visit Cheyenne. Figure 22. Emergency Room Visits, CRMC, 2011-, Monthly Totals Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: WCBEA from Cheyenne Regional Medical Center. 33