La Plata County Economy Still On Track
By Deborah Walker
Associate Professor of Economics
Office of Economic Analysis & Business Research School of Business Administration Fort Lewis College
As 2008 approaches (Happy New Year to everyone), our local economy continues to remain strong. When comparing economic indicators with the third quarter of 2006 to the third quarter of 2007, we see no reason to believe that our local economy will see a downturn any time soon.
In looking at the local labor market, for example, the average (for the three month period) number of people employed increased by 8% over the same time last year from 29,629 to 32,009 people. The average unemployment rate for the County (the percent of people in the labor force who are looking for a job) also continues to remain very low. In the third quarter of 2006 it was 3.2%; while it was only 2.4% in the third quarter of 2007. That translates into approximately 862 people unemployed in the third quarter of 2007, while there were approximately 1,014 people unemployed in the third quarter of 2006.
Visitors, as well as locals, continue contributing to our local economy. Just a few more passengers (38) used the Durango–La Plata County Airport in the third quarter of this year when compared to the same quarter last year (a 0.1% increase). Lodgers tax revenue increased by 5% when not accounting for inflation. When inflation is considered, the increase from quarter three 2006 to quarter three 2007 was 2.6%. Sales tax revenue also increased in the third quarter. Considering inflation, the increase was 1.73% over last year (this includes both County and City of Durango sales taxes).
Agriculture still remains an important contributor to the local economy. While average alfalfa hay prices increased 19.2% from quarter to quarter (when adjusted for inflation, or 22% when not adjusting for inflation), third quarter calf prices continued to decline. Third quarter calf prices fell (compared to the third quarter of 2006) by 7.6% (adjusted for inflation, or 5.4% when not adjusted for inflation).
Local industry indicators were mixed in the third quarter of 2006, some increasing, while others decreasing. Industrial kilowatt hours used in La Plata County increased by 9.4%, while the energy price index decreased by 3.5% (when adjusting for inflation). According to the Federal Deposit Insurance Corporation, bank deposits in La Plata County increased by 1.37% (not adjusted for inflation, and by 1.32% when adjusted for inflation) from the end of June 2006 to the end of June 2007.
According to the Durango Area Association of Realtors, median residential real estate prices (country homes) in La Plata County increased from quarter three 2006 to quarter three 2007 by 8.5% (adjusted for inflation). Without adjusting for inflation, the price increased from $341,500 to $379,450 (an 11.1% increase). Breaking this down by area, quarter three median prices for country homes (not adjusted for inflation) decreased by 1.2% in Durango, but increased by 11.4% in Bayfield. The number of country homes sold in La Plata County in the third quarter of 2006 was 127. During the same time frame in 2007, the number of country homes sold decreased to 122. Most of this decrease came from the Durango area (84 homes sold in quarter three 2006 versus 68 homes sold during the same time in 2007). The Bayfield area, on the other hand, saw an increase in home sales from 25 in quarter three 2006 to 42 in quarter three 2007.
The project value of the building permits issued increased substantially in the third quarter by about 48.8% (adjusted for inflation) from the previous year. Permit valuation can change dramatically from quarter to quarter due to a very large project being issued a permit during a specific month. But this increase does show that the construction industry remains strong in the County. Enrollment at Fort Lewis College (comparing fall 2006 to fall 2007) increased by 0.7% (from 3,907 students to 3,935 students). This is the largest freshman class at the College since 2004.
To hear more detailed economic statistics about La Plata County and the surrounding region, the State of Colorado, as well as the nation, please come to the 2008 Southwest Business Forum sponsored by Wells Fargo Bank and the School of Business Administration at Fort Lewis College on Friday, January 11. Continental breakfast will be served at 7:30 am the program runs from 8:00 am to 11:30 am. There is no charge for attending.
Readers can find this data and more online at our Four Corners Economic Quarterly web site: http://soba.fortlewis.edu/econoweb/. We will continue to provide quarterly data of many local economic indicators for La Plata County on this web page.
