October 23, 2020
October’s economic indicators for the Rapid City trade area show continued economic recovery. Unemployment decreased to 5.2%. Average weekly wages increased almost 16% year over year. Gross sales climbed by almost 4% over last year’s spending. And building permits rose significantly.
Airport boardings and hotel occupancy continue their post-COVID recoveries as well, but given that we are entering winter, it’s likely we won’t see a complete stabilization until the spring and summer of 2021.
As we saw last month, real estate is again a story of contrasts, with the COVID-19 crisis affecting commercial and residential in different ways. Commercial real estate has slowed, as 42,000 square feet was added to the market in the month of August. Residential real estate, on the other hand, is coming off the market so quickly, it’s hard to believe. Active listings are down almost 20% from a year ago, while the median list price is up almost 22%. As workers and families continue to flee the coasts and major cities as a result of the pandemic, expect these trends, along with population increases, to continue.