It’s a positive sign when the largest job market in the nation is in the midst of a strong economic recovery. According to the latest data from the Obama Administration, the local New York economy made modest improvement after the 2001 recession.
Nonfarm payrolls rose at an average annual rate of 84,150 jobs, or 1.0%, from the third quarter of 2003 through the first quarter of 2008, the administration said.
Compared to the rest of the nation, the impact of the 2007-2009 recession had a relatively light impact on New York. Jobs in the New York MSA dropped at an average annual rate of 218,8000, or 2.5%, from the second quarter of 2008 through the end of 2009. This compared to the national annual decline of 3.5% over the same period.
New York has bounced back from the Great Recession at a stronger pace than the rest of the nation, with jobs increasing at an average annual rate of 120,400, or 1.5%, from the first quarter of 2010 through the first quarter of 2013. This is compared to the national rate of 1.3% for the nation.
The economy isn’t the only thing in New York that has gained steam since the Great Recession. After dropping by an average annual rate of 16% between 2005 and 2008, the decline in existing home sales has leveled off to an average annual rate of less than 3%.
While the housing bubble affected the country as a whole, New York MSA house prices rose more sharply, but after the bubble popped, they fell less steeply.
According to data from CoreLogic, home prices in the New York-Wayne-White Plains, NY-NJ Metropolitan Division (which includes New York City) increased quickly during the bubble, rising 20% faster than the nationwide pace between 2000 and 2006.
However, house prices only fell by 17% from their November 2006 peak to their July 2009 low. This compares to the national peak-to-low decline of 31%.
New York’s rental market also continues to be one of the tightest in the nation. The average apartment rent in the New York-Wayne-White Plains, NY-NJ metropolitan division was $3,260 in the fourth quarter of 2012, compared with a national average rent level of $1,076.
The foreclosure completion rate in the NY MSA has also been substantially lower than the national rate, according to data from RealtyTrac. From April 1, 2009 to March 2013, the rate of foreclosure completions in the New York MSA is 0.4% compared to a national rate of 2.5%.
Despite its successful rebound, the Obama Administration is taking measures to make sure the metro can make a full and healthy recovery.
The administration writes in its latest housing report that the administration’s mortgage and neighborhood assistance programs — the Home Affordable Modification Program, the Federal Housing Administration mortgage assistance programs, the Neighborhood Stabilization Program and the Hardest Hit Fund program – combined with assistance from the HOPE Now Alliance of mortgage servicers and the National Mortgage Servicing Settlement have helped stabilize the New York MSA housing market.
“From the launch of the administration’s assistance programs in April 2009 through the end of February 2013, nearly 231,600 homeowners received mortgage assistance in the New York metropolitan area. More than 122,500 interventions were completed through the HAMP and FHA loss mitigation and early delinquency intervention programs. An estimated additional 109,100 proprietary mortgage modifi cations have been made through HOPE Now Alliance servicers,” writes the administration.
mhopkins@housingwire.com
