The Great Plains region's nonagricultural wage and salary employment grew by 136,700, or 2.2 percent, from June 1997 to June 1998. Kansas led the region with a 2.9-percent growth rate, closely followed by Nebraska at 2.8 percent. Growth was concentrated in the services sector. As of June the unemployment rate in the Great Plains region was 3.5 percent. Of the four States, only Missouri experienced an increase, advancing only one-tenth of a percent from 12 months earlier to 4.2 percent in June 1998. Nebraska reported the lowest unemployment rate in the Nation at 1.7 percent. Iowa's rate is 2.5 percent, and Kansas reported a rate of 3.5 percent.

The growing economy in Kansas during the past several years has been due in great part to the growth in aircraft manufacturing in Wichita and Independence. Another major source of employment growth is the Sprint Corporation. The company started construction in July 1997 in Overland Park of a $700 million campus, with 3.1 million square feet of office space that will be occupied by 10,500 employees when it is completed in late 2001. At least five hotels are scheduled for construction or are in the planning stages near the Sprint office campus. Residential real estate agents report brisk sales activity in nearby subdivisions.

Building permits for new residential construction in the Great Plains region increased by 6 percent during the first half of 1998. Single-family permits were up 8 percent, while multifamily activity remained at the same level. Kansas led the way in the single-family category with an increase of 16 percent. Multifamily activity in Missouri for 1998 through June was up 4 percent compared with the same period in 1997.

Existing home sales in the region remained strong during the first 3 months of 1998, reaching an annual rate of 288,200 homes, an increase of 18 percent over the same period in 1997. Sales increased in all four States in the region. Iowa reported the largest percentage increase, at 30 percent. In the St. Louis metropolitan area, local real estate sources report a market characterized by low inventories, short selling periods, and sharply rising prices. Existing home sales during the first half of 1998 were up 12 percent compared with the first 6 months of 1997. The average sales price increased sharply from $130,700 to $152,100, an 8.4-percent gain.

Spotlight on Lake of the Ozarks, Missouri

Lake of the Ozarks and adjacent Truman Lake in central Missouri are nationally recognized vacation and retirement destinations. The area had long been known as Missouri's premier lake and resort destination until the growth of the Branson area in the 1980s.

The agriculture-based economy has made the transition to activities relating to services for tourists and retirees. Employment growth averaged 3.2 percent annually from 1990 to 1996. Peak summer employment typically climbs about 24 percent above the lowest level for the year, normally in January. Changes in the seasonal patterns, however, have become less extreme in recent years as more retirees have chosen to live year-round in the area.

The population of the three-county area has increased by 2.1 percent per year during the 1990s, about the same rate of growth as in the 1980s.

The area is currently experiencing an economic surge related to the recent opening of the Lake Community Bridge, which connects the relatively underdeveloped west side of the lake to the more highly developed east side, shortening the commute between the two sides to a matter of minutes from the previous hour or longer drive. The bridge makes the 6,000-acre tract of land known as Shawnee Bend a prime development area by connecting it to the Osage Beach area.

Residential development has accelerated sharply during the past several years, primarily due to an increase in multifamily housing construction. Multifamily activity is concentrated in town-houses and condominiums, with most of the units being purchased as vacation homes or by the increasing number of retirees who choose the area as a permanent residence. The prices for new three-bedroom units range from $80,000 to $200,000 for units that include a garage and a boat slip.

The LIHTC program was used for 251 units in conjunction with a U.S. Department of Agriculture housing program. With 34 of 251 LIHTC units vacant in late May 1998, it appears that there is somewhat of an oversupply of the units in the Lake of the Ozarks area at this time.

Showing the impact of the Lake Community Bridge, most major developments currently under way in the area are on Shawnee Bend. Four Seasons resort, which owns 2,300 acres on Shawnee Bend, is currently offering residential lots on its 500-acre first phase. Nearby, development is under way on an 18-hole Jack Nicklaus Signature golf course. Shawnee Bend Development Company has a 720-acre tract of land on Shawnee Bend.

With the new accessibility of these properties to services and the general attractiveness of the Lake of the Ozarks, strong growth is likely to continue.