Met Council’s 2008 economic report full of (strained) good cheer

The Metropolitan Council has released its annual report on regional economic indicators (.pdf). Full of rankings and year to year growth percentages, the report puts our best facts forward to portray an optimistic future for the Twin Cities, but not even the Met Council’s sunny outlook will warm every heart.

According to the report, “metro area job growth has slowed considerably” in 2006 and 2007. From 2000 to 2007, net employment growth was 1.8 percent, ranking 17th among the top 25 Metropolitan Statistical Areas (MSAs) and equating to just 31,600 new jobs. Not only has job growth been slowing, but per capita income only increased 2.9 percent from 2000 to 2006, ranking 16th in top 25 MSAs. These indicators reflect the growing stagnation of what has traditionally been a very vibrant regional economy.

The effects of the housing crunch are also reflected in the data. Household budget stress is the “share of households that are cost-burdened in their present housing.” Despite ranking as 9th most affordable metro area, Twin Cities housing costs create household budgeting troubles for 48 percent of renters and 36 percent of homeowners.

The real estate market for business is suffering as well. Office vacancy rates were at 13.8 percent for the fourth quarter of 2007, above the national average of 12.8 percent.