LONG BEACH TRENDS REPORT2018 CSULB REGIONAL ECONOMIC FORUM

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LONG BEACH TRENDS

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The City of Long Beach enjoyed strong economic growth throughout 2017, keeping pace with the county and state. From January 2017 to January 2018, the Long Beach unemployment rate fell by 0.4 percentage points to 5.2%, somewhat higher than Los Angeles County (4.7%) and the state (4.6%). New business growth is on the rise, with the total number of establishments increasing by 1.2%. The sales tax increase that was approved in June 2016 and put in place in January 2017 helped the city realize a 12.1% increase in taxable sales from the first quarter of 2016 to the first quarter of 2017 and an annual increase of 9.7% from 2016 to 2017.

Long Beach’s private employment increased by 2.8% from the first quarter of 2016 to the first quarter of 2017, faster than LA County overall (1.2%) and on par with the state. Job changes were mixed, with about half of the city’s industries adding jobs and half losing jobs or holding steady. Job gains were led by the largest industry, Health Care, followed by Administrative Support, and Professional Scientific and Technical Services. Retail trade lost the largest number of jobs (700), but saw the largest increase in average wage at 9.2%.

0

4

8

12

16

Une

mpl

oym

ent R

ate

(%)

160

180

200

220

240

Empl

oym

ent (

000s

)

Jan-10 Jan-12 Jan-14 Jan-16 Jan-18

Employment Unemployment Rate

Source: California Employment Development Department

City of Long Beach, January 2010 to January 2018Household Employment and Unemployment Rate

April 2018

• Long Beach home prices are rising, but sales have weakened, perhaps due to declining affordabilityand low inventories. Compared to a year earlier,the median existing single-family home price ofLong Beach increased by 6.9% to $597,800,while existing home sales decreased by 12.4%.By comparison, sales increased modestly in LosAngeles County, while the median home priceincreased by 8.2% to $604,650. Long Beachapartment rent increased by 3.3% to $1,730, ascompared to 5.5% growth in LA County. Vacancyrates remained stable in Long Beach at 4.3%which is somewhat higher than the county (3.3%).Annual permit growth in Long Beach exploded in2017: multi-family permits increased more thaneleven-fold and single-family permits more thandoubled.

• Local port activity is also on the upswing. ThePort of Long Beach hit a new high with a recordthroughput of 7.5 million containers in 2017. Thiscontributed to job gains in Transportation andLogistics, which saw a 3.7% (400 jobs) increasefrom the first quarter of 2016 to the first quarterof 2017.

0

200

400

600

800

Thou

sand

s of

Dol

lars

Q1-08 Q1-11 Q1-14 Q1-17

Long Beach Los Angeles CountyCalifornia

Source: DataQuick

Q1-08 to Q4-17Existing Single-Family Home Prices

2018 CSULB REGIONAL ECONOMIC FORUMLONG BEACH TRENDS

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40,000

45,000

50,000

55,000

60,000

Aver

age

Wag

e ($

)

100

110

120

130

140

Empl

oym

ent (

000s

)

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

Employment WageSource: California Employment Development Department, Beacon Economics

City of Long Beach, Q1-09 to Q1-17Private Nonfarm Employment and Average Wage

40,000

45,000

50,000

55,000

60,000

Aver

age

Wag

e ($

)

1,000

1,250

1,500

1,750

2,000

Payr

oll i

n M

illion

s ($

)

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

Payroll WageSource: California Employment Development Department, Beacon Economics

City of Long Beach, Q1-09 to Q1-17Private Payroll and Average Wage

3,500

3,700

3,900

4,100

4,300

4,500

Esta

blis

hmen

ts

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17Source: California Employment Development Department, Beacon Economics

Q1-09 to Q1-17City of Long Beach Private Establishments

50

75

100

125

150

(Inde

x, Q

1-08

= 1

00)

Q1-08 Q1-11 Q1-14 Q1-17

Long Beach Los Angeles CountyCalifornia

Source: California Board of Equalization

Selected Areas, Q1-08 to Q4-17Taxable Sales

2018 CSULB REGIONAL ECONOMIC FORUMLONG BEACH TRENDS

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3

0

200

400

600

800

Med

ian

Pric

e ($

000s

, SA)

0

200

400

600

800

Hom

e Sa

les

(SA)

Q1-07 Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

Home Sales Median Price

Source: DataQuick

City of Long Beach, Q1-07 to Q4-17Home Prices & Sales

100

150

200

250

(Inde

x, Q

1-08

= 1

00)

Q1-08 Q1-11 Q1-14 Q1-17

Long Beach Los Angeles CountyCalifornia

Source: DataQuick

Q1-08 to Q4-17Selected Areas Home Sales

1,200

1,400

1,600

1,800

2,000

Cos

t of R

ent (

$, S

A)

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

City of Long Beach Los Angeles County

Source: REIS

City of Long Beach, Q1-09 to Q4-17Apartment Rent

3

4

5

6

Vaca

ncy

Rat

e (%

, SA)

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

City of Long Beach Los Angeles County

Source: REIS

City of Long Beach, Q1-09 to Q4-17Apartment Vacancy Rate

0

100

200

300

400

500

600

Fore

clos

ures

(SA)

0

200

400

600

800

1,000

1,200

Def

aults

(SA)

Q1-07 Q1-09 Q1-11 Q1-13 Q1-15 Q1-17

Defaults Foreclosures

Source: DataQuick

City of Long Beach, Q1-07 to Q4-17Defaults and Foreclosures

0

500

1,000

1,500

Uni

ts

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: CIRB

City of Long Beach, 2007 to 2017Residential Housing Construction

Single-Family Multi-Family

2018 CSULB REGIONAL ECONOMIC FORUMLONG BEACH TRENDS

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0

200

400

600

Milli

ons(

$)

2007

2008

2009

2010 20

1120

1220

1320

1420

1520

1620

17

Source: CIRB

City of Long Beach, 2007 to 2017Non-Residential Permit Value

Commercial HotelIndustrial AlterationsOffice Retail

16,000

18,000

20,000

22,000

Empl

oym

ent

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17Source: California Employment Development Department, Beacon Economics

Q1-09 to Q1-17City of Long Beach Tourism Employment

8,000

10,000

12,000

14,000

Empl

oym

ent

Q1-09 Q1-11 Q1-13 Q1-15 Q1-17Source: California Employment Development Department, Beacon Economics

Q1-09 to Q1-17City of Long Beach Logistics Employment

2018 CSULB REGIONAL ECONOMIC FORUMLONG BEACH TRENDS

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2018 CSULB REGIONAL ECONOMIC FORUMLONG BEACH TRENDS

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