Southern California Rental Housing Association Rental Advisor Magazine - November Issue

Page 37

Southwest Riverside County © Jon Bilous | Dreamstime.com

Economic Forecast

In late August, the Temecula Valley Chamber of Commerce hosted a Regional Economic Forecast breakfast. The breakfast featured the City Managers of Hemet, Lake Elsinore, Menifee, Murrieta, Temecula, and Wildomar, the Executive Director of Riverside County Economic Development Department and Economist Christopher Thornberg, Founding Partner of Beacon Economics and Director of UC Riverside School of Business Center for Economic Forecasting and Development. The economic forecast highlighted the recent and upcoming accomplishments of the cities and county in the Southwest Riverside Region as well as an update on the nation and region’s economy. Each city manager touted the positive economic growth their city is experiencing even during the pandemic. They noted the rise in area median incomes, and home prices. Healthy job growth and new businesses are generating more tax revenue for the cities improving quality of life for their residents. 2020 U.S. Census data showed that the Southwest Riverside region had robust population growth during the past decade. Riverside County’s Economic Development Department spoke

By Southern California Rental Housing Association about its economic development 2021 pumped $5.1 trillion into and job training programs. the economy with stimulus Southwest Riverside County checks, increased unemployment continues to see increased insurance, PPP loans, and business investment and its emergency funding to state and economic conditions improve, local governments for items such but the EDD did note that the as emergency rental assistance businesses in the region face programs. challenges such as hiring new workers and retaining and Unlike the 2008 recession, which attracting workers because of high took the United States years to competition for homes that are for recover from, the 2020 COVID sale. recession was brief. Thornberg noted the U.S. Gross Domestic Keynote presenter Christopher Product, industrial production, Thornberg addressed the nation and manufacturing has quickly and Southwest Riverside’s rebounded rising to or above preeconomy now and what it may pandemic numbers. U.S. consumer look like in the next few years. spending is near pre-pandemic Thornberg noted the causes and levels and showing many differences between the 2008 households are fine financially. and 2020 recessions and how the Most higher income households government responded to both deposited their stimulus checks events. Thornberg described the and other direct payments into government’s response to the 2008 their savings and checking Great Recession as inadequate accounts. Low-income Californians and its reaction to the COVID-19 led in spending among all other pandemic as excessive. income level households and held higher balances in their checking Thornberg provided various accounts. economic data to explain what is happening nationally and in the However, Thornberg stated Southwest Riverside region. The government public health onset of the pandemic resulted in orders shutting down businesses thousands of businesses closing disrupted services and and millions of workers losing manufacturing supply chains, their jobs, totaling $525 billion creating a spike in prices, in lost income. However, the shrinking inventory in many federal government’s stimulus economic sectors. During the packages of May 2020 and January pandemic recession, he noted November 2021 socalrha.org | 35


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