The Greater Los Angeles economy continued to grow at a moderate pace in 2015. The region’s nonfarm payroll gains of 2.7 percent in 2015 were on par with gains in 2014. Employment growth is expected to moderate somewhat this year as we move later in the economic cycle. There are also macroeconomic headwinds to the area labor market this year. The strengthening of the U.S. dollar compared to major foreign trade partners is a headwind for local export manufacturers and tourism-related industries.
Housing demand for the Greater Los Angeles region is expected to remain strong in 2016. Inventory will be tight again this year, with supply growing at a tepid pace. Tight housing inventories are boosting home prices throughout the region. One side effect of the higher cost of housing in more expensive markets such as Los Angeles and Orange Counties is the increased demand for more affordable homes in the Inland Empire. According to the California Association of Realtors home sales were up year-to-date in December 2015 by 11.0 percent and 5.5 percent for San Bernardino and Riverside Counties, respectively.
After more than two decades without a pro football franchise, Los Angeles will see the return of the Rams. The early-January decision by NFL owners came with an option for the San Diego Chargers to work out a deal to share a new stadium with the Rams if the Chargers ultimately decide to move to Los Angeles. Ground has already been broken on the new sports complex located in Inglewood. The project includes a $1.9 billion dollar stadium that can seat up to 80,000. The complex will be mixed use with 2,500 new residential units, a 300-room hotel and additional retail and office space. Maximizing the use of the facility for additional entertainment events will bring millions of additional dollars to the local economy.
Click here for the complete Greater Los Angeles Regional Economic Update: Los Angeles 2016Q1.