U.S. Housing Market Conditions, First Quarter 2003: National Data

Utica-Rome, New York
The Utica-Rome metropolitan area consists of Oneida and Herkimer Counties. Between 1990 and 2000 the population in the metropolitan area declined by 5.3 percent to 299,896. Both Utica and Rome recorded population losses during the decade. Oneida County registered the second largest net population loss within New York State between 1990 and 2000. The losses in the local economy are partly the result of the closure of Griffiss Air Force Base and the continuing decline in manufacturing employment in this Upstate New York market area.

The impact of the 1995 closure of Griffiss Air Force Base on the metropolitan area has been mixed. Local redevelopment agencies continue to redevelop the installation and market the facility to attract new firms into the area. Several of the larger tenants at this location are expected to expand in the future, and other smaller firms have been induced to relocate to this site. One high-technology firm is Scienx, a start-up company that specializes in optical imaging and anticounterfeiting technology.

The area’s economy has been shifting toward tourism and recreation. The construction of the Turning Stone Casino in the town of Verona, New York, by the Oneida Indian Nation in 1993 has added more than 3,000 jobs in the metropolitan area. This facility has evolved into a multipurpose destination resort with the addition of golf courses, recreational vehicle parks, a hotel, and an events and concert center. More than $300 million will be invested at this location in the next few years to bolster employment levels in central Oneida County.

Statistics published by the New York State Department of Labor indicate that total employment within the region is beginning to show signs of weakening. Job losses in the manufacturing sector are primarily responsible for the downturn. For example, Guilford Mills, a manufacturer of curtains and bedding, closed in March 2002 with 325 jobs lost. For the 12 months ending February 2003, employment in the manufacturing sector declined by more than 1,200 jobs compared with the same period just 1 year ago, and were only partly offset by the more than 500 jobs gained in the service-providing sectors.

Residential building permit activity has declined sharply during the past 2 years. Total permit activity dropped from 419 housing units in 2001 to 88 units in 2002. A poor economy and consumer uncertainty continue to dampen demand for new housing in the area. The New York State Department of Labor forecasts that the greatest number of job openings in this part of the state will be concentrated in the lower paying trade, entertainment, and service sectors. The median sales price for an existing home in Oneida County increased by 4 percent for the 12 months ending December 2002. According to the New York State Board of REALTORS®, monthly home sales volumes were holding at levels comparable to last year.

Multifamily development in the previous 3–5 years has been confined to small, subsidized, projects for elderly residents scattered throughout Oneida and Herkimer Counties. These projects typically range from 18 to 24 units and serve small population centers in rural parts of the metropolitan area.

Rental market conditions in the urban centers of Utica and Rome can be characterized as soft, whereas suburban townships report a more balanced condition. The rental market in Rome has been soft for some time. Many of the older market-rate properties in the urban centers have been unable to enact any rental increases during the previous 24 months. The city has a large number of one- and two-bedroom units in the existing rental stock that were developed for off-base housing to accommodate civilian and military households assigned to the Griffiss Air Force Base. As a result demand declined sharply in the years following the base’s closure.

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