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Utah Past, Present &
 FAST FORWARD
Arthur C. (Christian “Chris”) Nelson, Ph.D., FAICP
        Presidential Professor & Director
          Metropolitan Research Center
                University of Utah
                 January 11, 2010
America Grows
                 200 million in 1968
                 300 million in 2006
                 400 million in 2034
                 500 million in 2050
       America adds 100 million people faster
       than any other nation except India and
          Pakistan – But faster than China.

Source: Arthur C. Nelson, Presidential Professor & Director of Metropolitan Research,
   University of Utah.
The Boom to Come                                                             2010-30
Area                                                      Utah                               Rank
1990-2010
  Pop. Growth                                             1.2M                                   14
  Growth Rate                                              68%                                    3
2010-2030
  Pop. Growth                                             1.5M                                   11
 Growth Rate                 51%             1
Will rise from 34th to 28th most populous state
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah.
The Boom to Come
             Salt Lake Metro
Metros > 1M (52)                                     Salt Lake                       Rank
1990-2010
  Pop. Growth                                               400k                         28
  Growth Rate                                                53%                         12
2010-2030
  Pop. Growth                                               500k                         27
    Growth Rate                                              42%                             8
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center,
   University of Utah.
The Boom to Come
       Salt Lake Metro
More Growth than:   San Antonio
                    San Jose
                    Tucson
                    Virginia Beach
Will Surpass:       Louisville
                    Memphis
                    Milwaukee
                    Oklahoma City
The Boom to Come
       Salt Lake Metro
Faster Growth rate than:   Orlando
                           Dallas-Ft. Worth
                           Denver
                           Washington DC
                           Tampa
                           Seattle
The Boom to Come
             Provo & Ogden Metros
Metros > 500k-1M (51)                                 Provo                               Ogden
1990-2010
  Pop. Growth                                       300k 5                          210k 11
  Growth Rate                                       110% 1                           60% 5
2010-2030
  Pop. Growth                                         360k 6                       170k            20
    Growth Rate                                        63%          2                30% 14
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah.
The Boom to Come
      Logan & St. George Metros
Metros < 250k (183)                                 Logan                       St. George
1990-2010
  Pop. Growth                                       50k 32                          120k 4
  Growth Rate                                       63% 12                          240% 1
2010-2030
  Pop. Growth                                       70k           22                  250k 1
    Growth Rate                                     52%            8                 150%           1
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah.
The Boom to Come
BC, Cedar City & Heber Micros
Micro (574)                         Brigham                  Cedar City                    Heber
1990-2010
  Pop. Growth                       13k 110                    30k 28                 15k 100
  Growth Rate                       36% 79                    140% 5                  145% 4
2010-2030
  Pop. Growth                       20k           61            40k 22                 25k 46
    Growth Rate                     42% 29                      75%          4       100%            1
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah.
464 billion
                                   2040                        square feet



                                                                                132 billion
                                                                                square feet
                                                 332 billion
                                                 square feet                 287 billion
                                                                             square feet
                                                                                155 billion
                                                                                square feet




                                          2010                          2040




Source: Data from Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center,
University of Utah. Image from Architect magazine, premier issue, November 2006.
Wasatch Range Megapolitan
       Area 2010-30
3rd fastest growing behind:
         Las Vegas & Sun Corridor
Faster growing than “high-growth” megas:
         Front Range & Cascadia
         Sierra Pacific & Southern Cal
         Texas Triangle & Florida
         Piedmont & Chesapeake
Population Growth 2010-2030
Area                         2010              2030             Change Percent
Wasatch                      2.5M              3.6M              1.1M    45%
Utah                         2.9M              4.4M              1.5M    50%

Numbers may not calculate due to rounding.




Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah. Numbers may not add or calculate due to rounding. Figures adapted from 2008 Economic
   Report to the Governor, Governor’s Office of Planning and Budget.
Residential Units 2010-2030

Area    2010                              2030 New/Rebuilt                                    %’10
Wasatch 900k                              1.35M   450k                                        50%
Utah    1.1M                              1.65M   550k                                        50%

Numbers may not calculate due to rounding.




Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah. Numbers may not add or calculate due to rounding. Figures based on residential units per
   capita 2000 adjusted for declining household size, plus loss factor based on census analysis.
Employment Growth 2010-2030
Area    2010                                   2030             Change Percent
Wasatch 1.5M                                   2.2M              700k    50%
Utah    1.7M                                   2.6M              900k    50%

Numbers may not calculate due to rounding.



Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah. Numbers may not add or calculate due to rounding. Employment includes full- and part-time
   jobs as defined by BEA.
Nonresidential Space 2010-2030

Area    2010                               2030             New/Rebuilt %’10
Wasatch 750M                               1.1B               900M      120%
Utah    850M                               1.3B                1.2B     120%

Numbers may not calculate due to rounding.



Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of
   Utah. Numbers may not add or calculate due to rounding.
Life-Span of Building Function




Source: Arthur C. Nelson, Presidential Professor & Director of Metropolitan Research, University of Utah,
based on DoE Commercial Buildings Energy Consumption Survey.
Bottom Line Construction
  Wasatch Megapolitan
       2010-2030
 Residential                                    $190 billion
 Nonresidential                                 $140 billion
 Infrastructure                                 $ 70 billion
 Total                                          $400 billion
 Annual Average                                  $20 billion
 Source: Arthur C. Nelson, Presidential Professor & Director,
    Metropolitan Research Center, University of Utah.
40,000 Housing Units Short




Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University
          of Utah
Substantial Pent-Up Demand
100,000 more Utahns “doubling up” than 2005.
Pent-up demand for about 40,000 new units
Economic recovery will mean housing gets a
  One-Two Punch:
   New homes needed to serve growth
   New homes needed to reduce doubling up
During 2010 & 2011100,000 new units needed
But ….
How Does It Grow?
Households are Changing
 Household Type                                 1960               2000               2040
US
 HH with Children    48%      33%    26%
 HH without Children  52%     67%    74%
 Single/Other HH     13%      29%    34%
_________________________________________
Utah
 HH with Children             47%    38%
 HH without Children          53%    62%
 Single/Other HH              18%    22%
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University
        of Utah.
People Turning 65 Each Year
[Figures in 000s]
4500


4000


3500


3000


2500


2000


1500


1000
                                                                                     95


                                                                                              00


                                                                                                       05


                                                                                                                10


                                                                                                                         15


                                                                                                                                  20


                                                                                                                                           25
                                                                            90
                                                 75


                                                          80


                                                                   85
   50


             55


                      60


                               65


                                        70




                                                                                                                       20


                                                                                                                                20


                                                                                                                                         20
                                                                                   19


                                                                                            20


                                                                                                     20


                                                                                                              20
                                                                 19


                                                                          19
                                      19


                                               19


                                                        19
 19


           19


                    19


                             19




Source: US Census Bureau – 65+ in the United States: 2005; Wan He, Manisha Sengupta, Victoria A. Velkoff, & Kimberly A DeBarros. December 2005   .
Share of Growth 2000-2040
US HH Type                                                    Share
With children                                                  14%
Without children                                               86%
   Single/Other                                                30%
Utah
With children                                                   25%
Without children                                                75%
   Single/Other                                                 25%
Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan
Research Center, University of Utah.
“New Urbanity” Preferences




Source: National Association of Realtors, American Preference Survey 2004.
Importance of Community Attributes

1.   Housing type (23-26%)
2.   Neighborhood age/life stage mix
                                                                1/2 to 2/3 (55-65%)
         (20-24%)                                                        7
3.   Public transportation options                              6
         (12-14%)                                                                     1
4.   Type of community (12-15%)
5.   Size of yard (11-12%)         5
6.   Open space (9-11%)
7.   Architectural design (5-6%)
                                                            4
                                                                                      2
Source: Adapted from Harris Interactive for Envision Utah
                                                                    3
Preferred Community Attributes
                  Housing type: Mix of single family
  Preferred          homes & town homes
 Combination
  of 75% of       Neighborhood age/life stage
   Utahns            mix: Mix of ages & stages
                  Public transportation options:
  Was about          Bus, Rail, TRAX
   25% in
   1990s          Type of community: Village
                  Lot size: Variety of lot sizes
                  Open space: Active & passive
                  Architecture: Distinctive
               Source: Envision Utah based on Harris Interactive
New Housing Market Realities
Sub-prime mortgages are history
Alt-A mortgages no more
FHA-like conventional mortgages king
“Jumbo” loans problematic
Demand for $1million+ homes tanked
Realization that location matters for investment
Meaning
  Smaller homes on smaller lots
  More renters
  Trend to more “urbane” location options
Growth Share by Ethnicity

Ethnicity                                2000                   2030               Rate Share
White*                                   1.5M                   2.1M                40% 45%
Non-White                                260k                   1.0M               285% 55%

*Non-Hispanic White



Source: Adapted from Woods & Poole Economics (2008) by Arthur C. Nelson, Ph.D., FAICP, Presidential Professor and
    Director, Metropolitan Research Center, University of Utah.
Home Ownership by Ethnicity - Utah
Ethnicity                Ownership 2006
All Households                72%
White*                        74%
Black                         48%
Hispanic                      50%
Asian/Pacific Islander        53%

*Non-Hispanic White

Source: Freddie Mac.
The Future is all About Education

        100 Latina/o Elementary                                  100 White Elementary
                Students                                              Students


      40 High School Graduates                                  84 High School Graduates


         4 College Graduates                                      26 College Graduates


            1 Masters Degree                                      10 Masters Degrees


              ~0.1 Doctorate                                          1 Doctorate




Source: Adapted from Octavio Villalpando, University of Utah.
Shifting Tenure Market
Salt Lake, Provo & Ogden Metros
Tenure                      2006                     2030                   Change                         Share
Owner                       480k                     650k                    170k                           51%
Renter                      200k                     360k                    160k                           49%
Total                       680k                     1.0M                    330k
   2008-2015     2/3–3/4 of New Housing will be for
  Renters including those who rent detached homes

Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
2040   1+1+5+25 =
  Wasatch “New Urbanity” Demand
1%+ Demand for downtown SLC
     40,000 people (minimum)
1%+ Demand for secondary centers (Ogden, Sandy, Provo)
     40,000 people
5%+ Demand for near-center living (Several SLC locations)
     200,000 people
25%+ Demand for transit-connected, suburban planned
     communities (Day Break)
     1,000,000 people
   = Two-thirds of all new development to 2040
Top Planning Programs
THANK YOU
http://metroresearch.utah.edu/

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Arthur C Nelson Salt Lake Realtors 1 11 10 1[1]

  • 1. Utah Past, Present & FAST FORWARD Arthur C. (Christian “Chris”) Nelson, Ph.D., FAICP Presidential Professor & Director Metropolitan Research Center University of Utah January 11, 2010
  • 2.
  • 3. America Grows 200 million in 1968 300 million in 2006 400 million in 2034 500 million in 2050 America adds 100 million people faster than any other nation except India and Pakistan – But faster than China. Source: Arthur C. Nelson, Presidential Professor & Director of Metropolitan Research, University of Utah.
  • 4. The Boom to Come 2010-30 Area Utah Rank 1990-2010 Pop. Growth 1.2M 14 Growth Rate 68% 3 2010-2030 Pop. Growth 1.5M 11 Growth Rate 51% 1 Will rise from 34th to 28th most populous state Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 5. The Boom to Come Salt Lake Metro Metros > 1M (52) Salt Lake Rank 1990-2010 Pop. Growth 400k 28 Growth Rate 53% 12 2010-2030 Pop. Growth 500k 27 Growth Rate 42% 8 Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 6. The Boom to Come Salt Lake Metro More Growth than: San Antonio San Jose Tucson Virginia Beach Will Surpass: Louisville Memphis Milwaukee Oklahoma City
  • 7. The Boom to Come Salt Lake Metro Faster Growth rate than: Orlando Dallas-Ft. Worth Denver Washington DC Tampa Seattle
  • 8. The Boom to Come Provo & Ogden Metros Metros > 500k-1M (51) Provo Ogden 1990-2010 Pop. Growth 300k 5 210k 11 Growth Rate 110% 1 60% 5 2010-2030 Pop. Growth 360k 6 170k 20 Growth Rate 63% 2 30% 14 Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 9. The Boom to Come Logan & St. George Metros Metros < 250k (183) Logan St. George 1990-2010 Pop. Growth 50k 32 120k 4 Growth Rate 63% 12 240% 1 2010-2030 Pop. Growth 70k 22 250k 1 Growth Rate 52% 8 150% 1 Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 10. The Boom to Come BC, Cedar City & Heber Micros Micro (574) Brigham Cedar City Heber 1990-2010 Pop. Growth 13k 110 30k 28 15k 100 Growth Rate 36% 79 140% 5 145% 4 2010-2030 Pop. Growth 20k 61 40k 22 25k 46 Growth Rate 42% 29 75% 4 100% 1 Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 11. 464 billion 2040 square feet 132 billion square feet 332 billion square feet 287 billion square feet 155 billion square feet 2010 2040 Source: Data from Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah. Image from Architect magazine, premier issue, November 2006.
  • 12.
  • 13. Wasatch Range Megapolitan Area 2010-30 3rd fastest growing behind: Las Vegas & Sun Corridor Faster growing than “high-growth” megas: Front Range & Cascadia Sierra Pacific & Southern Cal Texas Triangle & Florida Piedmont & Chesapeake
  • 14. Population Growth 2010-2030 Area 2010 2030 Change Percent Wasatch 2.5M 3.6M 1.1M 45% Utah 2.9M 4.4M 1.5M 50% Numbers may not calculate due to rounding. Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah. Numbers may not add or calculate due to rounding. Figures adapted from 2008 Economic Report to the Governor, Governor’s Office of Planning and Budget.
  • 15. Residential Units 2010-2030 Area 2010 2030 New/Rebuilt %’10 Wasatch 900k 1.35M 450k 50% Utah 1.1M 1.65M 550k 50% Numbers may not calculate due to rounding. Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah. Numbers may not add or calculate due to rounding. Figures based on residential units per capita 2000 adjusted for declining household size, plus loss factor based on census analysis.
  • 16. Employment Growth 2010-2030 Area 2010 2030 Change Percent Wasatch 1.5M 2.2M 700k 50% Utah 1.7M 2.6M 900k 50% Numbers may not calculate due to rounding. Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah. Numbers may not add or calculate due to rounding. Employment includes full- and part-time jobs as defined by BEA.
  • 17. Nonresidential Space 2010-2030 Area 2010 2030 New/Rebuilt %’10 Wasatch 750M 1.1B 900M 120% Utah 850M 1.3B 1.2B 120% Numbers may not calculate due to rounding. Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah. Numbers may not add or calculate due to rounding.
  • 18. Life-Span of Building Function Source: Arthur C. Nelson, Presidential Professor & Director of Metropolitan Research, University of Utah, based on DoE Commercial Buildings Energy Consumption Survey.
  • 19.
  • 20.
  • 21. Bottom Line Construction Wasatch Megapolitan 2010-2030 Residential $190 billion Nonresidential $140 billion Infrastructure $ 70 billion Total $400 billion Annual Average $20 billion Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 22.
  • 23. 40,000 Housing Units Short Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah
  • 24. Substantial Pent-Up Demand 100,000 more Utahns “doubling up” than 2005. Pent-up demand for about 40,000 new units Economic recovery will mean housing gets a One-Two Punch: New homes needed to serve growth New homes needed to reduce doubling up During 2010 & 2011100,000 new units needed But ….
  • 25. How Does It Grow?
  • 26. Households are Changing Household Type 1960 2000 2040 US HH with Children 48% 33% 26% HH without Children 52% 67% 74% Single/Other HH 13% 29% 34% _________________________________________ Utah HH with Children 47% 38% HH without Children 53% 62% Single/Other HH 18% 22% Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 27. People Turning 65 Each Year [Figures in 000s] 4500 4000 3500 3000 2500 2000 1500 1000 95 00 05 10 15 20 25 90 75 80 85 50 55 60 65 70 20 20 20 19 20 20 20 19 19 19 19 19 19 19 19 19 Source: US Census Bureau – 65+ in the United States: 2005; Wan He, Manisha Sengupta, Victoria A. Velkoff, & Kimberly A DeBarros. December 2005 .
  • 28. Share of Growth 2000-2040 US HH Type Share With children 14% Without children 86% Single/Other 30% Utah With children 25% Without children 75% Single/Other 25% Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 29. “New Urbanity” Preferences Source: National Association of Realtors, American Preference Survey 2004.
  • 30. Importance of Community Attributes 1. Housing type (23-26%) 2. Neighborhood age/life stage mix 1/2 to 2/3 (55-65%) (20-24%) 7 3. Public transportation options 6 (12-14%) 1 4. Type of community (12-15%) 5. Size of yard (11-12%) 5 6. Open space (9-11%) 7. Architectural design (5-6%) 4 2 Source: Adapted from Harris Interactive for Envision Utah 3
  • 31. Preferred Community Attributes Housing type: Mix of single family Preferred homes & town homes Combination of 75% of Neighborhood age/life stage Utahns mix: Mix of ages & stages Public transportation options: Was about Bus, Rail, TRAX 25% in 1990s Type of community: Village Lot size: Variety of lot sizes Open space: Active & passive Architecture: Distinctive Source: Envision Utah based on Harris Interactive
  • 32. New Housing Market Realities Sub-prime mortgages are history Alt-A mortgages no more FHA-like conventional mortgages king “Jumbo” loans problematic Demand for $1million+ homes tanked Realization that location matters for investment Meaning Smaller homes on smaller lots More renters Trend to more “urbane” location options
  • 33. Growth Share by Ethnicity Ethnicity 2000 2030 Rate Share White* 1.5M 2.1M 40% 45% Non-White 260k 1.0M 285% 55% *Non-Hispanic White Source: Adapted from Woods & Poole Economics (2008) by Arthur C. Nelson, Ph.D., FAICP, Presidential Professor and Director, Metropolitan Research Center, University of Utah.
  • 34. Home Ownership by Ethnicity - Utah Ethnicity Ownership 2006 All Households 72% White* 74% Black 48% Hispanic 50% Asian/Pacific Islander 53% *Non-Hispanic White Source: Freddie Mac.
  • 35. The Future is all About Education 100 Latina/o Elementary 100 White Elementary Students Students 40 High School Graduates 84 High School Graduates 4 College Graduates 26 College Graduates 1 Masters Degree 10 Masters Degrees ~0.1 Doctorate 1 Doctorate Source: Adapted from Octavio Villalpando, University of Utah.
  • 36. Shifting Tenure Market Salt Lake, Provo & Ogden Metros Tenure 2006 2030 Change Share Owner 480k 650k 170k 51% Renter 200k 360k 160k 49% Total 680k 1.0M 330k 2008-2015 2/3–3/4 of New Housing will be for Renters including those who rent detached homes Source: Arthur C. Nelson, Presidential Professor & Director, Metropolitan Research Center, University of Utah.
  • 37. 2040 1+1+5+25 = Wasatch “New Urbanity” Demand 1%+ Demand for downtown SLC 40,000 people (minimum) 1%+ Demand for secondary centers (Ogden, Sandy, Provo) 40,000 people 5%+ Demand for near-center living (Several SLC locations) 200,000 people 25%+ Demand for transit-connected, suburban planned communities (Day Break) 1,000,000 people = Two-thirds of all new development to 2040