Columbia’s economy in perspective

Then most dramatic swings in the local economy during the past eight years might be the housing construction market and, inversely, air transportation.
The charts developed from CBT’s monthly economic indicators also illustrate the unemployment rate’s stubborn nature, stuck around 6 percent for two years now after doubling from the historically normal rate last seen in 2003. One intriguing aspect is the total labor force, which hit a peak last year. That indicates the local job market is relatively attractive — workers aren’t heading out of town to find jobs.


The rollercoaster ride of homebuilding, as indicated by city permits, rose rapidly for four years and reached a peak of $148 million in value. The descent was even steeper, reaching a trough of $66.6 million in 2008, followed by slight increases in the past two years.
Although the total volume of home sales in Boone County seems to have taken a gentle dip and slide, the number of home sales dropped severely, from 2,284 in 2003 to 1,591 in 2010.
Still, the change in market value appears to be relatively stable. A recent report by local appraiser Allan Moore examined double sales of single-family homes from December 2007 through mid-December last year.


Of the 52 homes that sold twice during the three-year period, 32 indicated an increase in value and 20 indicated a decline in value.  After eliminating 13 atypical homes, such as those extensively renovated and those foreclosed on, the average increase in value was 4.2 percent and the average decline was 4.5 percent.
The report concluded with this opinion: Columbia’s above average employment rate has been a primary factor in keeping housing prices flat, as opposed to a declining market, over the past three years and will continue to do so in the future.