Des Moines economy receives high rating

While the economy in the Des Moines metro (like the rest of the country) is less than perfect, the Washington-based think tank Brookings Institution reports: Des Moines is doing relatively well.

The Brookings’ MetroMonitor report was released today (6/17/2009), and based on “overall performance” Des Moines is ranked in the top 20 of the 100 largest metropolitan economies in the U. S. where overall performance was based on recent changes in 4 indicators:

• employment
• unemployment
• gross metropolitan product
• housing price index

The full rankings are available.

In employment were are in the top 20% along with Omaha-Council Bluffs and Kansas City. The middle quintile included Denver, Minneapolis, St. Louis, and Chicago.

In the rate of increase in unemployment, the report showed that Des Moines was best in the country. We have lost jobs more slowly than any other metropolitan area. This was attributed in part to the relative insulation of the insurance industry to rapid change during a recession. Omaha-Council Bluffs was also in the most favorable 20%.

The question of wages which typically do not drop during a recession, Des Moines did not compare as favorably where we were in the second to the lowest quintile.

In recent changes in the gross metropolitan product, Des Moines was in the middle quintile.

The strength of the real estate markets is reflected by our position in the 2nd most favorable quintile. If you want to sell a house, it is most favorable to live in Houston, Buffalo, or Dallas, but you are in a lot of pain if you are trying to sell in Modesto, CA, Las Vegas, NV, or Stockton, CA. New slogan opportunity for Las Vegas: “If you bought a house in Vegas, your money will stay in Vegas.”

A final category considered in the Brookings report is real estate owned by lending institutions. These are properties that have been foreclosed, that the lender has tried and failed to sell at auction, and that remain in the hands of the lending institution. The Des Moines metro is in the middle. The fewest such properties are in Syracuse and Albany, NY and greatest number in Stockton, CA and Las Vegas, NV.

During the worst economic downturn since the Great Depression, while we are suffering individually and collectively as institutions, a city and state, the Des Moines metro is doing relatively well. We couldn’t ask for a lot more.

photos by flickr by recentexposurephotography

James is James G. Lindberg (Jim) is the Purple Wren’s sweetie and is a visiting chemistry professor at Grinnell College and retired from Drake University.
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