The Great Plains region recorded modest increases in employment during the past year. Nonagricultur-al wage and salary employment grew by 57,200 (less than 1 percent) from November 1998 to November 1999. Growth rates for Nebraska and Missouri remained at less than 1 percent. Nonagricultural employment was up 2.3 percent in Iowa and 1.6 percent in Kansas. At the same time, the unemployment rate in the region dropped to 2.4 percent in November 1999, compared with 3.0 percent in November 1998. Kansas reported an unemployment rate of 3.3 percent, the lowest November rate since 1979. Iowa, Missouri, and Nebraska recorded unemployment rates of 2, 2.3, and 2 percent, respectively. Some local areas with severe labor shortages are holding fairs to attract workers. Columbia, Missouri, with an unemployment rate of less than 1 percent, holds an annual fall job fair.

The pace of homebuilding in the Great Plains continued to increase during 1999. Single-family permits totaled 47,020 homes, a 4-percent increase over 1998. Iowa recorded the largest percentage increase in the region, with an 11-percent gain. Activity in the Kansas City and Omaha areas was up 11 and 20 percent, respectively, because of the strong local economies. The annual rate of existing sales in the Great Plains for 1999 was up 3.8 percent to 282,900 homes. Sales in Missouri led the way, with a 5.9-percent increase to 122,900.

Multifamily building permits in the Great Plains region declined 18 percent in 1999. Activity in the Kansas City metropolitan area, however, was up 12 percent, due in large part to the strong rental market in Johnson County. Rental market conditions are balanced to tight in the region's major market areas. Apartment occupancy rates in the St. Louis, Kansas City, and Omaha metropolitan areas are approximately 95 percent.

Spotlight on St. Louis, Missouri-Illinois

In November 1999, the St. Louis metropolitan area recorded its lowest unemployment rate since 1973, 2.7 percent. The area's unemployment rate was 3.6 percent in October 1998. Parts of the metropolitan area are experiencing significant labor shortages. The unemployment rate in suburban St. Charles County has fallen to 1.5 percent, and the unemployment rate in St. Louis City is only 4.3 percent. In the 12-month period ending in November 1999, nonagricultural payroll employment increased by 13,300, with service industries accounting for more than half of the increase. Construction, trade, and transportation all recorded strong increases. Manufacturing employment, however, fell by 5,000 jobs as a result of big declines in aircraft production.

On the Illinois side of the metropolitan area, construction continues on the 26-mile, $460 million phase two of the MetroLink light-rail line extension that will serve St. Clair County, linking it to the city. The MetroLink line currently runs from Lambert International Airport in St. Louis County, Missouri, to East St. Louis, Illinois. The 17-mile extension to Belleville Area College is expected to open in May 2001, and the final two links, to Scott Air Force Base and the new Mid-America Airport, also in Illinois, are scheduled to open in 2003.

The population in the St. Louis metropolitan area as of July 1, 1998, was approximately 2.6 million, an increase of 3.4 percent since the 1990 census. From 1990 through 1998, St. Louis City lost an estimated 14 percent of its population, or 57,400 persons. However, both the Missouri and Illinois suburbs have experienced modest rates of population growth, 7.6 and 4.4 percent, respectively. The population of St. Charles County has increased 28 percent since 1990 to approximately 272,400, due in part to in-migration from St. Louis County and St. Louis City.

Local sources in the St. Louis area report a continued strong market for existing homes, with sales during 1999 off only 5 percent from 1998. The median sales price for existing homes was $102,900. In 2000 permits were issued for more than 10,500 single-family homes. St. Charles County continues to lead the metropolitan area in homebuilding, and 2000 should see a record volume for the county.

During the past 4 years, multifamily building permit activity in the St. Louis area has averaged 2,000 units annually. In 1999, permits were issued for 2,155 units. Apartment occupancy rates of 95 percent or more are typical. Many local housing industry leaders see demand growing for larger, high-rent units and for loft-type apartments and condominiums in mixed-use developments. Older close-in suburban neighborhoods, such as Clayton and University City, have new apartment and condominium projects under development, and some poor-quality old buildings are being razed to make way for new projects.

Downtown St. Louis and the East St. Louis riverfront are experiencing a resurgence. Currently five hotel/condominium projects recently opened, are under construction, or are financed and ready to begin construction. The five projects will have more than 1,950 hotel rooms and about 300 extended-stay suites. The Crown Hotel, which opened recently, has 157 rooms and is located in East St. Louis next to the Casino Queen gaming boat. The Drury Hotel on Broadway also opened recently. It is located in three old buildings that had been scheduled for demolition. The Westin is currently under con-struction across the street from Busch Stadium, in the Cupples Station area. It will have 220 hotel rooms and 50 extended-stay units. The Marriott Renaissance, which is planned for construction next to the Convention Center and the TWA Dome Stadium, will have 918 hotel rooms and 165 extended-stay suites. The final project, scheduled to start construction soon, is the 292-unit Sheraton Hotel, a block from the new Kiel Center. There will also be 76 condominium units on the two top floors of the Sheraton building.

In addition, about 500 loft-type housing units are either under construction or being planned in the Washington Warehouse-Loft district. The Loft district, located on the north side of downtown, was once the site of the city's garment district but today consists largely of vacant or underused industrial and warehouse buildings, many of which are well suited for conversion to apartments/condominiums. Typical units will be about 1,200 square feet, with rents ranging from $650 to $1,175. Condominium units will be priced from $170,000 to $244,000. St. Louis has allocated $17 million in Federal and State highway funds to use in the loft district for streetscape improvements, lighting, and landscaping to encourage further conversion of the area's old buildings into housing units. Local officials and developers have targeted housing developments to bring more people downtown. St. Louis City is currently reviewing proposals for redevelopment of the vacant Merchandise Mart building on Washington Avenue. Many of the proposals plan residential use for the 110-year-old 7-story building, which covers an entire city block.