From strong job growth to rising construction activity, Clark County’s economy in the first half of 2016 has shown remarkable strength.
Experts say it may take more than a year for the local housing market to catch up with demand from newcomers who have found jobs and must either buy or rent a place to live.
“We see the local economy as steady and improving,” said Ron Wysaske, president of Vancouver-based Riverview Bank. “You can look around and see the evidence of new projects. From the number of [loan] deals we’re doing, real estate looks healthy.”
Wysaske also applauds the relocation of Banfield Pet Hospital headquarters to Vancouver and the recent news that Payless Drug Pharmacy Group will do the same. Banfield brings 650 jobs, Payless Drug, 350.
“A few hundred jobs here and there makes a difference,” Wysaske said.
On the broader employment front, retailers – from auto dealers to grocery stores, pharmacies to car-parts businesses – created 700 new jobs in the 12 months through April. Construction companies added 900 jobs and financial services hired 500 new workers.
Employment in the “information sector” has been a standout up 10 percent with 300 new hires. The category includes telecom worker, pre-packaged software designers and those providing internet services.
Overall employment in the county (not including residents who commute elsewhere) has increased by 6,000 jobs to 153,600 for a 4.1 percent annual increase. That growth rate is more robust than statewide job growth in both Washington and Oregon as well as in the Portland-Vancouver metro area.
Dominique Merriweather, vice president for commercial lending at Continental Pacific Bank in Vancouver, said it has been great to see small start-up businesses such as food trucks popping up in Vancouver’s downtown.
“Revitalization with business growth and more multi-family housing construction are making a difference,” Merriweather said.
Wysaske, Merriweather and others see continuing expansion throughout the county through the rest of the year and into 2017. Here’s why:
Developers have announced plans for two new hotel projects along the Columbia River: Hotel Indigo, a $40-million 120-room hotel-condominium building and the AC Hotel by Marriot at the Port of Vancouver’s Terminal One. Mark Matthias, owner of Beaches Restaurant & Bar, soon expects to open his Warehouse ‘23 restaurant at the former Red Lion at the Quay.
Recently, Vancouver and Clark County’s burgeoning craft beer brewery scene won metro-wide coverage in the Oregonian newspaper for its “vibrant, delicious, walkable scene in once sleepy Vancouver.
“Elsewhere in the county, construction is well along on the $500 million Cowlitz Project near La Center, to be completed next year. Craft Warehouse is moving into the long empty Best Buy space in Hazel Dell and Marshall’s is bringing its first store to Vancouver at Hazel Dell Marketplace.
The Red Robin chain is opening a new restaurant in Battle Ground.
Manufacturing businesses are showing signs of expansion. Workers at Christensen Yachts are back making luxury boats despite ongoing legal disputes. Kyocera Industrial Ceramics Corp. is adding 30 jobs in Vancouver as part of an expansion at its Fourth Plain facilities.
A four-building industrial complex is being constructed in West Vancouver that will ultimately include 800,000 square feet of space planned in three phases on 43 acres. Hewlett-Packard revealed that it will expand its innovation center in Vancouver focused on 3-D printing, wearable technology and the “internet of things.” AbSci LLC, a life science business, is relocating into renovated space at the Port of Vancouver.
Ed Franks, business lending officer for IQ Credit Union, sees strong commercial lending activity in the county this year.
“We have seen a considerable increase with a focus on construction lending, particularly multi-family housing, which is really busy right now,” Franks said. “The economy in both Clark County and on the other side of the river is doing very well, especially real estate.”
Tight housing market
Because of job growth and an influx of newcomers, a severe shortage of mid-priced housing is pushing up both single-family home prices and apartment rental rates in Clark County. Some are calling it a housing crisis.
In April, the county had only 1.8 months of single-family home inventory for sale (if no new listings were added). That’s well below the norm.
From a year ago, the average sale price of homes has climbed 18 percent to $325,400. Since January, 2,399 homes have sold in the county, according to the Portland-Vancouver multiple listing service with April being the strongest month for April closings since 2005, the RMLS said.
Among the fastest-growing counties in Washington, Clark County – with an estimated total population of 460,000 – has seen newcomer growth of 8 percent (36,800) in the past five years.
Despite the growth and a lot of positive economic news, local bankers remain vigilant. Rising loan interest rates could slow things down.
“Many business borrowers jumped on low interest rates in recent years to refinance, buy big equipment and lower costs,” said Pacific Continental’s Merriweather. “Now it seems like they are pausing to get into November and through the political season.”
Riverview’s Wysaske worries that a rate increase by the Federal Reserve Bank could dampen the local economy.
“Everyone learned a few lessons from the recession,” he said. “We like the growth but we realize things could change.”
Clark County Labor Market Profile
Sector Total jobs % increase from 2015
Total in-county employment: 153,600 4.1 %
Information: 3,300 10 %
Construction: 11,200 8.7 %
Leisure-hospitality: 15,100 8.6 %
Financial services: 8,200 6.5 %
Trade, transportation: 28,100 3.7 %
Professional-business services: 18,600 3.9 %
Educations-health services: 25,300 2.0 %
Government-education: 25,100 2.4 %
Manufacturing 13,100 1.6 %
SOURCE: Washington Employment Security Department
