7.2. HRSR 06-01-2020 - Laserfiche WebLink

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Hillside Heights Apartments, Elk River, Minnesota Market Analyst Professionals, LLC 38 April 24, 2020 Section 7: Economic Analysis Economic Overview The proposal will offer units targeted at low and moderate income households within Elk River, within the Minneapolis MSA. Economic analysis is provided for the Minneapolis MSA, city of Minneapolis and Sherburne County, which are deemed the most insightful for the site’s economic viability. In addition, information for the State of Minnesota and United States are illustrated to put these trends into greater context. Local economics are largely driven by the national economy, particularly for larger, more urban areas with greater economic diversification. This is visually evident in the unemployment rate comparison presented in the following pages (i.e., movements in the unemployment rate for the United States coincide with state and local movements). While generally moving in tandem with national levels, the unemployment rate within Minnesota and submarkets has been lower in comparison to national levels in recent years. The national economy suffered a credit crisis in 2008, which led to worsening economic conditions including declining consumer confidence, continued pressure on an already fragile housing sector, declining consumer spending and a dramatic decline in automotive purchases all contributing to a worsening in economic conditions throughout the nation. Unemployment rates have been declining for the past ten years contributing to a more stable economic environment with low unemployment rates evident in the city and county. At the time of completion of this report, the United States and global economy are experiencing a tumultuous period marked by increasing unemployment claims as a result of shelter in place orders in various states. The impact of this will likely be significant in the near term despite government efforts to mitigate the impact through stimulus and other preventative measures. Analysis throughout this report is based on economic conditions returning to growth and greater stability at the time of market entry for the proposal.