The Southeast region saw the addition of more than 530,000 new nonagricultural jobs in the 12 months ending in August 1999, an increase of 2.3 percent. Almost half of this growth was in Florida, where 251,800 jobs were added, a 3.8-percent increase. More than half of the job gains in the State were in the services sector. Georgia and South Carolina recorded significant employment increases of 2.9 percent and 2.7 percent, respectively. In Georgia, employment in the trade sector increased by 27,900 jobs, almost half of which were attributed to the opening of the Mall of Georgia in Gwinnett County in suburban Atlanta. South Carolina's economy is expected to remain strong as a result of recent announcements, such as Michelin's commitment to a $400 million capital expansion over the next 5 years, and possibly $900 million over the next 10 years.

The recent storms and flooding have affected employment gains in North Carolina. During the 12-month period ending in August, job growth slowed to 1 percent. According to an economist based at the University of North Carolina-Greensboro, eastern North Carolina has suffered during the recovery process, but activity will be spurred by the repair and reconstruction that is expected to begin in earnest in the area during the coming weeks. Construction companies are expected to benefit significantly from the influx of Federal resources earmarked for rebuilding. Such strong demand is expected for all types of construction labor that wages in the construction trades may be pushed up throughout the State. Highway construction activity in particular is expected to become a major stimulant to economic activity, especially during the fourth quarter of 1999, since projects must be started within 180 days of funding to qualify for 100-percent Federal matching funds.

Single-family home construction in the region, as measured by building permits, remained strong through the third quarter. During the first 9 months of 1999, permits were issued for more than 266,000 homes, an increase of 9.3 percent over the same, very active period in 1998. All States recorded increases in single-family activity, with South Carolina, Mississippi, and Alabama recording double-digit gains of 17.9, 12.1, and 12.0 percent, respectively. The boom in Atlanta's single-family market continues, with permits through September totaling 37,197 homes, 8 percent ahead of last year's figures. Atlanta's northern suburbs continued their rapid growth despite increasing infrastructure problems that have slowed the pace of development in some areas.

Existing home sales activity in the eight States in the region was also very strong during the first 9 months of 1999. The annual rate of sales in the region as of the third quarter was 137,270 homes, 13 percent greater than last year, according to the National Association of REALTORS^®. In the Birmingham area, 1999 has been another strong year, with sales of 7,386 homes through August 1999, a healthy 7-percent increase according to the Birmingham Association of REALTORS^®. FHA sales volume for Puerto Rico and the Virgin Islands during the first 9 months of 1999 increased by 17 percent, from 11,367 units to 13,351 units, over the same time period in 1998. The increase is attributed to post-hurricane housing construction and reconstruction efforts and the increases in the Federal Housing Administration mortgage limits.

The rental housing market continues to be very strong in most every major market in the Southeast during 1999. Multifamily permit activity for the first 9 months of 1999 for the region totaled approximately 92,000 units, an 8-percent increase over the first 8 months of 1998, although only three States recorded increases: Florida, North Carolina, and South Carolina. In Dade County, Florida, multifamily permits totaled 5,138 units, 79 percent higher than the same period last year. The big increase follows 2 years of relatively low levels of construction, substantial declines in vacancy rates during the past few years, and much tighter market conditions. In the Orlando area, severe labor shortages are delaying the completion of a number of new multifamily developments. Local sources estimate that more than 14,000 rental units are now under construction. Approximately 26 new projects have been started in the past 6 months. In North Carolina, multifamily building permit activity for the first 9 months of 1999 totaled 16,316 units, up 30 percent compared with the same period in 1998, due to dramatic increases in the Charlotte-Gastonia and Raleigh-Durham metropolitan areas. Charlotte property managers are reporting declining occupancy rates and more competitive conditions.

In Memphis, overall apartment occupancy for the second quarter of 1999 was 94.3 percent, compared with 92.8 percent at the end of 1998, according to a CB Richard Ellis survey. A June 1999 Mississippi Gulf Coast Apartment Survey by W.S. Loper Associates covered more than 14,000 units in the Biloxi-Gulfport area and found occupancy rates at 95.2 percent.

Spotlight on Raleigh-Durham-Chapel Hill, North Carolina

The population of the Raleigh-Durham-Chapel Hill metropolitan area was 1.1 million as of July 1, 1999, an increase of 250,000 persons, or 29 percent, since the 1990 census. Two-thirds of the growth has occurred in Wake County, the location of the city of Raleigh. Since 1990, the population of Wake County has grown by 39 percent. A long, steady trend in employment growth can be attributed to three factors that underpin the local economic base: Raleigh is the State capital; the metropolitan area is home to the University of North Carolina, North Carolina State University, and Duke University; and the county is home to Research Triangle Park (RTP).

RTP, the largest planned research-oriented development of its type in the world, contains more than 6,900 acres, approximately 4,000 of which have been developed. RTP is home to 137 private, government, and nonprofit enterprises; 106 of these are involved in a variety of research and development. More than 42,000 people are employed by the firms located here, whose total annual payroll exceeds $1 billion. Future development at RTP could result in up to 20,000 more jobs and more than $2 billion in investment over the next 20 years.

During the 9-month period ending August 1999, permits were issued for more than 11,600 new single-family homes in the six-county metropolitan area, 9 percent greater than the volume for the same period during 1998. Wake County continues to dominate the local homebuilding industry, but outlying counties such as Johnston County are taking an increasing share of new sales housing development. Johnston County, just southeast of Raleigh, with ample supplies of water and affordable land, is becoming a significant bedroom community for Raleigh.

According to the Triangle Multiple Listing Ser-vice, sales during the first 9 months of 1999 in Durham, Orange, and Wake Counties totaled 14,817 homes, an increase of 8 percent compared with the same period in 1998. The average sales price was $171,000, up 7.4 percent. Wake County accounts for nearly three-fourths of total sales, with 10,915 units sold during the first 3 quarters of 1999 at an average price of $174,600. The highest average sales price was $194,000 in Orange County.

Since 1994, multifamily housing construction has averaged 4,700 units annually. During the first 9 months of 1999, building permits were issued for more than 5,000 multifamily units. According to the most recent apartment report by Carolinas Real Data, which covers the three most active counties within the metropolitan area (Wake, Durham, and Orange Counties), more than 2,270 new apartments were absorbed in the first 6 months of 1999, and occupancy rates in apartment developments surveyed averaged 94 percent. More than 9,000 units are currently in the planning process.