Rochester, New York Employment levels in the six-county Rochester metropolitan area continued to decline during the 12-month period ending September 2002. Despite employment losses relatively strong housing market conditions continue in the metropolitan area, primarily because of low mortgage interest rates and the availability of affordable homes. The Rochester metropolitan area comprises six counties: Genesee, Livingston, Monroe, Ontario, Orleans, and Wayne. In 2000 the total population in the Rochester metropolitan area was 1,098,201, a 9.6-percent increase compared with 1990. However, the city of Rochester lost population, declining by more than 5 percent to 219,773 persons during this same period. The Rochester area has been one of the more stable labor market areas in Upstate New York in recent years. In the 12 months ending in September 2002, however, the metropolitan area lost 8,800 jobs as nonagricultural employment declined 1.6 percent to 543,400 persons. Approximately 80 percent of these employment losses occurred in the manufacturing sector, and the high-wage durable goods sector lost an estimated 7,000 jobs. The employment losses were offset somewhat by growth in the area’s service sector. The economy of the Rochester metropolitan area has historically been dominated by three large employers: Eastman Kodak Company, Xerox Corporation, and Bausch & Lomb, Inc. Downsizing, cost containment, and job losses in these companies have had an effect on the area. Kodak is expected to lay off another 1,300 to 1,700 local employees by the end of 2002. Although the Rochester area is a sophisticated labor market area with a skilled and well-educated workforce, prospects in the short term are for moderate growth at best. In September 2002 the unemployment rate in the Rochester metropolitan area was 5.5 percent, up from 4.9 percent in September 2001. For the past 3 years total residential building permit activity in the Rochester metropolitan area has averaged approximately 3,600 units annually. In the first 9 months of 2002 permits were issued for 1,698 units, up 6 percent from the same period a year ago. More than 80 percent of this activity is for single-family homes. Recently home construction has been most active in the suburban communities of Chili, Gates, Henrietta, and Webster. According to the Greater Rochester Association of REALTORS®, the existing sales market in the metropolitan area remains strong. Existing home sales in 2002 through September totaled 8,912 homes, a 2-percent increase compared with sales for the same period a year ago. Real estate listings also increased by almost 10 percent during this same period. The median sales price of an existing single-family home during the first 9 months of 2002 rose a slight 0.6 percent to $95,500. Negligible new residential housing construction has occurred in downtown Rochester. The downtown rental housing market in Rochester remains soft with vacancy rates in older housing stock estimated to be above 10 percent. Demand for upscale rental housing and loft apartments in certain trendy areas of the city, however, remains strong. A $19.6 million mixed-use multifamily rental housing/retail complex was recently proposed for the Corn Hill area of downtown Rochester. This proposed 127-unit multifamily rental property represents a significant part of the city’s redevelopment plans for the Corn Hill neighborhood, located south of the central business district.

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