Greater Boston is in unchartered territory in economic growth and it is an exciting time to be a resident, business owner or investor.
In May, employment hit an all-time peak with more people now employed in the region than at any other point in history. Unemployment rates have hit a multi-year low.
Population growth from 2010 to 2013 was 4.6 percent in Boston, translating into almost 30,000 new residents to the city. Population growth was 2.2 percent in the state, double the U.S. average. Meanwhile, Massachusetts’ unemployment rate fell to 5.6 percent from 6.0 percent in May of 2014.
JLL Research reports that pull to the urban core is real and the development pipeline is responding in kind with a myriad of multifamily, retail and office projects underway. The tightening in the core is creating healthy spillover demand in outer core markets. Key suburban submarkets are equally tight, causing spillover in surrounding areas. Overall all boats are rising.
The outlook remains bright. It is additionally supported by the highest score in the Associated Industries of Massachusetts Business Confidence Index since August 2012, when we hit a speed bump due to all the fiscal uncertainty spilling out of Washington.
The AIM index for May hit 53, and revealed very encouraging shifts in the mindset of business owners. The May survey highlighted a dramatic shift in hiring, with 32 percent of firms planning to add personnel in the next six months up from 26 percent in the previous six months and 11 percent of employers planning cuts, down from 18 percent in the previous six months. This shows a dramatic push into expansionary territory.
Given how firms have been measured in their growth plans and thoughtful, this new growth territory feels sustainable and solidly grounded in healthy fundamentals.