The mild economic decline in the Great Plains region continued through March 2002, with overall nonagricultural employment down 1 percent to 6.4 million jobs from March 2001. Nearly all of the total job losses for the region were in Missouri. Manufacturing suffered the largest decline of any sector, down nearly 6 percent from March 2001, with losses occurring in all four States. Missouri accounted for nearly 60 percent of the losses in manufacturing. According to Missouri officials, the decline in manufacturing has spread from metropolitan area manufacturers and their suppliers to small rural manufacturing suppliers.

With major layoffs at Boeing, Wichita experienced a greater loss in manufacturing employment, nearly 8 percent, than any other metropolitan area in the region between March 2001 and March 2002. St. Louis also suffered a decline of nearly 6 percent in manufacturing jobs during this period, following layoffs at Daimler-Chrysler and at Boeing, two of the largest manufacturers in the St. Louis area. The unemployment rate in the Great Plains region was at 4.2 percent in March 2002, up from 3.9 percent in March 2001. The unemployment rate in both Wichita and St. Louis was nearly 6 percent in March, up from 5 percent a year ago.

Despite the slow economy, single-family permit activity totaled 9,600 units in the region through March 2002, up 9.3 percent compared with the same period in 2001. In St. Louis, 2,365 new single-family units were permitted through the first 3 months of 2002, up only 0.2 percent over the same time period in 2001. The number of single-family permits issued in Omaha, Nebraska was up 9 percent; in Des Moines, Iowa, 65.8 percent; and in Springfield, Missouri, 13.8 percent. Although the number of units actually permitted reflects the small size of some of these markets, all major metropolitan areas in the region registered increases in single-family activity.

Existing home sales in the region overall were up 2 percent to 65,000 through the first quarter of 2002 compared with the first quarter of 2001. Among the States, sales were mixed. Kansas registered a 13-percent gain in sales and Iowa an 8-percent increase, whereas Missouri and Nebraska each had an increase of less than 1 percent. Similarly, price increases were mixed for existing homes, with Kansas and Missouri recording statewide gains in median sales prices to $106,000, or 4.5 percent, and $120,000, or 3.5 percent, for the two States, respectively. The median sales price for existing homes in Iowa increased by 4.5 percent to $100,000 but remained unchanged in Nebraska at $105,000. These price levels reflect the continued affordability of the region.

Multifamily permit activity in the region declined by nearly 25 percent to 3,254 units through March 2002 compared with the same time period in 2001. All major metropolitan markets in the region registered declines in multifamily permits issued except Des Moines and St. Louis. Despite increases, however, activity in St. Louis continues to be slow with only 542 units permitted.

Activity in Des Moines is noteworthy because the number of multifamily units permitted increased from 72 units for the first 3 months of 2001 to 806 units for the first 3 months of 2002. Activity for all of 2001 was up 68 percent over the level of activity in 2000. Despite being a smaller market in terms of volume, the increase in multifamily permit activity last year and to date this year reflects balanced to tight market conditions in the area. The overall rental vacancy rate in Des Moines was 5 percent throughout last year and through the first quarter of 2002. Rents increased approximately 3.3 percent between March 2001 and March 2002 and are on track to increase by a similar rate throughout 2002. However, local sources have noted that the vacancy rate will likely increase in the Des Moines market over the next 2 years because of the number of newly permitted units and the number of units in the planning stages.

As a result of the economic downturn, the rental vacancy rate in St. Louis was at 7 percent throughout 2001 and remains at that level despite limited multifamily activity over the past year. St. Louis has been hit harder than most other metropolitan areas in the region with the exception of Wichita, Kansas. In Wichita the rental market has been balanced to soft with an 8-percent rental vacancy rate over the past 15 months primarily as result of the weakening local economy, which is dependent on the aircraft industry. Reflecting the softness in the rental market and the state of the local economy, only 81 new multifamily units were permitted through the first 3 months of 2002, after only 142 units were permitted through all of 2001.

Rental markets have remained balanced to tight in Omaha and Lincoln, with the rental vacancy rate declining to 7 percent in Omaha in March from 7.6 percent a year ago, while remaining at 5 percent in Lincoln. Local sources anticipate that the Lincoln rental market will tighten further because few new units are coming online and because the demand for rental housing will remain strong among students.