It's the start of another week and spring is definitely in the air. It's drawing people outside and it's turning thoughts toward tourism -- whether that's Idahoans planning vacations abroad or Idahoans planning for vising the Gem State.
I'm currently working on a story for the March 15 issue of Idaho Business Review that looks at the winter versus spring and summer tourism seasons and it's making me want to get out and explore this beautiful state.
Speaking of drawing people to Idaho, the state is still attracting plenty of new residents. Many are coming for jobs (unemployment is holding steady at 3.1%, the Bureau of Labor Statistics reported), but there's a problem: Housing.
Again and again, it's being reported that the demand for housing is outpacing inventory. On Thursday, I attended the 2024 Canyon County Economic Summit in Nampa, where national and local experts weighed in on the matter.
The theme was pretty universal in that the state needs more housing, yes, but it needs more affordable housing for all income levels. Pricing levels are outpacing income levels, leaving the American Dream just out of reach. I'll be detailing the summit in the next issue as well.
One of the key points that's been shared is that the Federal Reserve is looking at lowering interest rates (which has been teased since late last year) and that probably won't happen until the second half of the year. But, experts are saying, don't expect to ever since 3% rates again. The new normal is likely to be in the 5 to 6% range.
"Given the current housing affordability crisis, higher rates will make owning a home completely out of reach for nearly all potential first-time homebuyers," Mark Zandi, chief economist of Moody's Analytics said in an Associated Press interview. "Since homeownership is a key part of the American dream, if it appears unattainable, this will deeply impact voters' sense of the economy."
On Friday, investors were "spooked" with the drop in the stock market, leading them to "rethinking bets on a June interest rate cut," a Yahoo!Finance story reported. Inflation is leading the Fed to hold off on cutting rates. The S&P 500, Dow Jones and Nasdaq all closed lower March 15, leading to an overall down week for markets.
Here at Idaho Business Review, we are recognizing a lot of upward mobility within the state, especially in the areas of leadership. Later this week, we will be announcing our Accomplished Under 40 list for 2024. Plus, in April, we'll be publishing Top Companies in Treasure Valley, Empowering Women and Power List: Workforce Education. Keep an eye out for those.