FINANCE REAL ESTATE TRANSIT & TOURISM
HIGHLIGHTS January 2017 saw a sharp rise in private sector employment The value of venture capital financings in New York City grew 18% in the final quarter of Citywide construction continued to be slightly depressed, while the Bronx and Brooklyn exceeded historical averages Residential rents continued to fall through the end of, despite rising home values While tourism ended on a high note, transit indicators were lower than usual
Private Sector Employment +39k from December Private Sector Employment +2.2 % from January Unemployment Rate 4.5 % 1New SNAPSHOT Private sector employment rose by 39,000 in January 2017. 1 Educational Services led job growth, adding 12,900 jobs between December and January, followed by Accommodation and Food Services and Professional Services. Administrative Services, Transportation and Warehousing, and Manufacturing all saw job losses last month. Between January and January 2017, the City added 81,900 private sector jobs, an increase of 2.2%. By comparison, national job growth was 1.7% over this period. The unemployment rate fell 0.4 percentage points to 4.5%, its lowest level in the four decades that the rate has been tracked at the City level. This is also the first time since 2011 that the City s unemployment rate is below the national average. Average weekly earnings were $1,197 in January 2017, an inflationadjusted increase of 0.6% from the year prior. DOWN from December York City Office of Management and Budget (OMB): Per usual, the January 2017 report incorporates the annual benchmark revision, which adjusts the past two years of monthly survey data to align with the more accurate but less timely Quarterly Census of Employment and Wages (QCEW). The annual average employment for was revised up by 30,000 private sector jobs. Estimated employment gains between December and January are often subject to substantial revisions and should be interpreted with caution. Monthly employment data are seasonally adjusted by OMB. Sources: New York State Department of Labor; US Bureau of Labor Statistics
NEW YORK CITY BY INDUSTRY INDUSTRY FIRE Finance & Insurance Securities Banking Other Real Estate/Rental/Leasing SERVICES Information Professional/Business Professional/Scientific/Technical Management of Companies & Enterprises Administrative Educational Health Care/Social Assistance Arts/Entertainment/Recreation Accommodation/Food Other TRADE Retail Wholesale MANUFACTURING TRANSPORTATION & UTILITIES PRIVATE GOVERNMENT TOTAL Jan 2017 465 334 176 97 60 131 2,527 196 735 419 70 246 260 702 89 356 189 493 351 142 73 134 150 3,842 554 4,396 (in thousands) Dec Previous Month Change Year-Over-Year Change 461 331 174 98 60 130 2,495 193 733 416 70 247 247 700 85 350 188 490 348 142 74 135 147 3,803 554 4,356 0.8% 0.6% 1.6% -0.5% -0.1% 1.2% 1.3% 1.5% 0.3% 0.8% 0.4% -0.5% 5.2% 0.4% 3.8% 1.7% 0.8% 0.6% 0.7% 0.3% -1.2% -0.8% 1.8% 1.0% 0.0% 0.9% -0.3% -1.2% -0.6% -2.3% -1.3% 2.0% 3.6% 3.3% 3.2% 3.4% 1.0% 3.3% 6.3% 4.8% 3.0% 1.6% 1.9% -0.6% 0.5% -3.3% -5.5% -0.4% 3.1% 2.2% 0.4% 2.0% Source: New York State Department of Labor
SAN FRANCISCO OAKLAND HAYWARD 2,359.7 +2.0% SEATTLE TACOMA BELLVUE 1,986.8 +3.4% LOS ANGELES LONG BEACH ANAHEIM 6,042.5 +1.5% NEW YORK CITY METROPOLITAN AREA COMPARED TO OTHER MAJOR METROPOLITAN AREAS Total Employment (in thousands) in Dec % Change from Dec 2015 DALLAS FORT WORTH ARLINGTON 3,597.1 +3.3% CHICAGO NAPERVILLE ELGIN 4,672.8 +0.7% DETROIT WARREN DEARBORN 1,997.7 +1.7% WASHINGTON ARLINGTON ALEXANDRIA 3,288.8 +2.1% NEW YORK NEWARK JERSEY CITY 9,657.7 +1.3% BOSTON CAMBRIDGE NASHUA 2,734.3 +2.0% PHILADELPHIA CAMDEN WILMINGTON 2,920.5 +1.4% MIAMI FT LAUDERDALE WEST PALM BEACH 2,633.5 +2.4% Source: US Bureau of Labor Statistics
FINANCE NYCEDC monitors New York City s gross city product, venture capital financing, and the New York Federal Reserve Bank s Index of Coincident Economic Indicators. These indicators are reported in a quarterly rotation. This month, we are reporting on venture capital. UP 18 % SINCE Q3 Venture Capital Funding $ 2.0 billion Q4 Deal Activity 129 Q4 DOWN 17 % SINCE Q3 FINANCE SNAPSHOT The value of venture capital financing in the New York City metropolitan area rose to $2 billion in the fourth quarter of the highest level in the three quarters. At the same time, the number of financing deals fell to the lowest level in recent years, indicating generally larger financings for local venture capital-backed firms. By comparison, both of these indicators fell in the US as a whole. Two deals accounted for nearly one-quarter of total financing: WeWork, a commercial real estate company, raised $260 million in a Series F round; and Buzzfeed, a media company, raised $200 million in Series G funding. Deal activity and financing levels for the New York City metropolitan area were second only to Silicon Valley for the fourth quarter. Source: CB Insights/PwC
SNAPSHOT In December, 540 construction projects worth a collective $2.67 billion were started in New York City, up 21% and 15%, respectively, from last year. While these totals are slightly lower than monthly averages over, the value of starts exceeded 12-month borough averages for the Bronx and Brooklyn. This aboveaverage performance was led by residential building projects in both boroughs, which pushed citywide housing unit starts to 2,665 12% higher than monthly averages over the preceding year. NEW YORK CITY PROJECTS by borough THE BRONX STARTS 47 VALUE $343,346* UNITS 579 BROOKLYN STARTS 126 VALUE $671,906* UNITS 1,283 MANHATTAN STARTS 239 VALUE $1,145,358* UNITS 604 QUEENS STARTS 91 VALUE $479,139* UNITS 168 STATEN ISLAND STARTS 37 VALUE $34,201* UNITS 31 Source: Dodge Data & Analytics *Project values in thousands of dollars. STARTS: All construction projects (including residential, non-residential, and infrastructure) that began construction in that month. VALUE: The total dollar value of all project starts. UNITS: Number of residential units contained in the month s construction starts.
REAL ESTATE RESIDENTIAL RATES 12.0% RENT HOME VALUE 10.0% Year-over-year change 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% $100 $90 $80 FEB MAR APR MAY JUN JUL MANHATTAN OFFICE MARKET OFFICE VACANCY AUG SEP OFFICE RENT OCT NOV DEC JAN 2017 10.0% 9.0% HOUSING SNAPSHOT In January 2017, housing continued end-of- trends. Median residential rents remained unchanged at about $2,300, 0.6% lower than January. This follows last month s modest year-over-year rent drop and continues a trend of decreasing annual rent growth, which has been continuous since July. Median home values continued their upward climb, rising 11.0% from January to about $631,000. The office market remained relatively steady with rents and vacancy rates both rising slightly. Office Rent (price per sq ft) $70 $60 $50 $40 $30 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% Office Vacancy Sources: Zillow; Cushman & Wakefield $20 2.0% $10 1.0% $0 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 2017 0.0%
TRANSIT & TOURISM TRANSIT & TOURISM SNAPSHOT Tourism in New York City showed signs of growth in December. International flights led rises in passenger arrivals and departures at regional airports. Hotel rates and occupancy in last two months of improved from the prior year for the first increase in per-room profitability since mid-2015. Local transit indicators for December were down from December 2015 levels, led by falling subway ridership. Total subway ridership in was 0.9% lower than in 2015, reflecting a clear recent downward trend. Ridership on both commuter rails and bridges and tunnels (which carry automotive traffic) grew in overall, making current trends slightly more ambiguous for these modes of transit. Sources: Port Authority or New York and New Jersey; Metropolitan Transportation Authority; Broadway League; CBRE TRANSIT CHANGE COMPARED TO COMMUTER RAIL SUBWAY BRIDGE & TUNNEL 2.6 % RIDERSHIP RIDERSHIP TRAFFIC 3.1 % 0.3 % TOURISM CHANGE COMPARED TO AIRPORT PASSENGERS TICKET SALES 3.1 % 4.2 % BROADWAY HOTEL REVENUE PER AVAILABLE ROOM 6.1 %