www.SportAnnex.com

Economy

There are two ways to look at the economy in Syracuse, by looking at the city itself as a whole and/or comparing it to the rest of cities in the nation we can gain a good understanding of the general economic health of the city.

Syracuse is a city that has for the past 25 years been transitioning from mainly manufacturing and process companies to finance, healthcare and higher education with some high tech engineering, biotech and green jobs also moving in. Although still a major commercial, industrial, and transportation center for the Northeast, being highly diversified helped Syracuse to get through the 2008-2009 recession far better than many major cities. Parenting Magazine lists Syracuse among the nation's top 10 small cities in which to raise a child, based on “affordable housing, a strong economy, good schools, low crime, and a clean environment”.

A report released in September of 2009 by the Brookings Institution had the following to say about Syracuse:
The Syracuse area's housing market had one of the strongest rankings of any metro area. It had the very lowest foreclosure rate, with just 0.6 of every 1,000 mortgageable properties owned by lenders following an unsuccessful foreclosure auction. The average among the 100 largest metro areas was 4.2, and the U.S. average was 3.34, Brookings said.

A one-year housing price gain of 3.4 percent gave the Syracuse area the seventh strongest housing market. Prices fell an average of 4.4 percent in the 100 largest metro areas and dropped 1.7 percent in the U.S. overall.
Real estate experts attribute Syracuse's relatively strong housing market to the fact that the area did not experience the extreme run-up in prices that led to a housing bust in some areas of the country, particularly California, Florida and Nevada.
The Syracuse area also ranked high in the employment category. It had the 12th strongest employment market, with a 1.8 percent decline in jobs since the third quarter of last year. The 100 largest metro areas lost an average of 3.8 percent of their jobs and the country overall lost 4.1 percent of its jobs during the same period.
The area ranked 38th best in unemployment, with an 8.6 percent unemployment rate, compared with an average unemployment rate of 9.7 percent in the 100 largest metro areas and the nation overall in the same quarter.

While the real estate market has remained strong in terms of foreclosures and the economy is strong (relative to the rest of the nation) in terms of unemployment, this does not mean that Syracuse in necessarily a top place for a developer to create housing. One must take into account Syracuse’s low estimated median household income as shown below:

Estimated median household income in 2008: $30,879 (it was $25,000 in 2000)
Syracuse: $30,879

New York: $56,033


Estimated per capita income in 2008: $18,242

Estimated median house or condo value in 2008: $82,500 (it was $67,900 in 2000)
Syracuse: $82,500

New York: $318,900


Median gross rent in 2008: $679.
Percentage of residents living in poverty in 2008: 29.7%

(Data from: www.city-data.com/city/Syracuse-New-York.html)

This data may suggest that Syracuse presents an excellent opportunity for a real estate developer willing to develop lower to mid level priced housing. Syracuse has been recognized as an excellent place to work and live; its Cost of Doing Business Index is sixth-lowest in the nation at 87.7 (a score of 100 is average), and Expansion Management magazine listed Syracuse among the country's top 50 cities for business relocation and expansion. Recent studies indicate Syracuse is leading the state in job growth. The City of Syracuse offers tax exemptions and permanent low-cost financing, loans up to $10,000 for high-risk startups and $50,000 for specific projects.

Many of Syracuse’s largest employers (listed below) hire young people who may be starting a family or looking for a first time home or apartment. This is excellent for our type of project where we’re offering housing in a nice neighborhood close to many of the below employers for a low cost.

Largest employers (Number of employees) SUNY Upstate Medical University (6,305) Syracuse University (4,640), Wegmans (3,775), New Process Gear Inc. (3,400) St. Joseph's Hospital Health Center (3,365), P & C Food Markets (2,500), Lockheed Martin (2,300), Crouse Hospital (2,200), Loretto (2,115), Niagara Mohawk A National Grid Co. (2,010)

By Steve Case and Kyle Bome