January 2011

The Hope for 2011: JOBS

A look at three regions where things are percolating

By Ann Londrigan, Senior Editor

Last summer before the election season revved up the Illinois Association of REALTORS® Advocacy Program polled Illinois REALTORS® to find out what they thought lawmakers should focus on policy-wise to move the state forward. Loud and clear, jobs ranked number one. Similar comments were made by Illinois brokers in the IAR Broker Sentiment surveys. “Not much change expected in the housing market unless the economy improves,” said one broker. “People need jobs.”

With the Illinois unemployment rate trending higher than the nation’s—at 9.8 percent in October compared to 9.6 percent for the United States—where are the jobs?

About 250 of them could land in Rockford if the city wins its bid for a 1,000-student residential campus for Embry-Riddle Aeronautical University, headquartered in Daytona, Florida. The fit seems perfect for Rockford’s established aerospace industry where grads could find jobs. Perfect and vital. The Rockford metro area has the highest unemployment rate in the state (14.4
percent last October), comparable to rates in regions of California, Nevada and Florida that were hit hardest by the housing boom fallout and foreclosure crisis.

So it’s no wonder REALTORS® are out in force leading a 20,000-signature petition drive and billboard campaign in Rockford and Daytona to show support for Embry-Riddle. The Illinois Association of REALTORS® contributed funding toward these marketing efforts; Embry-Riddle’s site decision—Rockford or Houston, Texas—may come early this year. A winning bid could be the catalyst to a dozen-plus other projects eyeing the region and promoted aggressively by the Rockford Area Economic Development Council, which earned a five-year capital commitment from the local REALTORS® association to spur economic growth.

“Illinois is a top-five economic engine in the country and we’re coughing black smoke. REALTORS® need to take ownership of that so we can have an impact on the future,” says Steve Bois, association executive for the Rockford Area Association of REALTORS® since January 2009 and the former Rockford area regional manager for the Illinois Department of Commerce and Economic Opportunity.

He adds: “It’s all about collaborating. By design, Rockford REALTORS® do things specifically so that we are at the table to help support initiatives that positively impact the real estate industry and homeowners, and nothing impacts them more than economic development and creating jobs.”

Central Illinois is a region somewhat insulated from the boom-bust highs and lows in the housing market although most will say it did not escape the recession. Peoria, notably, has maintained stable employment growth despite some ups and downs.

REALTOR® Mike Maloof, broker-owner and president of 240-agent Jim Maloof REALTOR® in Peoria also serves as president of the Peoria Area Association of REALTORS® and Membership Chair of the Peoria Area Chamber of Commerce. He sees hope rising from the recession in the form of job growth in the region’s medical community and Caterpillar. Another positive signal: 265 new members joined the chamber in its recent membership drive.

“I see the soft spots that plagued us a year ago starting to disappear,” says Maloof, pointing to consumer confidence as the primary focus for the year ahead. “In discussions with the largest medical provider in the state of Illinois, OSF HealthCare, they are looking to hire 500 positions in the state and they can’t keep up with their medical employee needs in Peoria. Cat has increased its sales and they are hiring back UAW workers at a fairly rapid pace.”

He adds: “With our two largest employers saying ‘We are in a hiring mode,’ I look by April 1 to see the Peoria area economy coming along pretty well. I don’t see it before then.”

The Central Illinois Springfield metro area had one of the lowest unemployment rates in the state last October at 7.6 percent. Still REALTOR® Ed Mahoney of 100-agent Re/Max Professionals thinks this typically stable region took a hit.

“We have not been as insulated, in my opinion, than in previous recessions due to the shrinkage of state government with significant job losses from retirements and those positions not being filled,” says Mahoney. “What has been a positive for us is the medical community. There has been a lot of growth, expansion and diversification by the major players. I assume we aging Baby Boomers are demanding these services.”

Mahoney is a member of the Greater Springfield Chamber of Commerce and was involved on the Development Policy Council for its five-year Quantum Growth or “Q5” economic growth initiative through 2011 with the goal of adding and retaining jobs. The Capital Area Association of REALTORS® invested $125,000 in Q5 and retains representation on the chamber’s Strategic Leadership Council.

“We’ve been working with the city and county governments to make Springfield a friendlier place to do business,” says Mahoney.

Looking westward, the Quad City metro area—Moline and Rock Island, Illinois, and Davenport and Bettendorf, Iowa—is the sole Illinois metro area reporting employment growth (+0.2 percent) over a solid 12-month period through September 2010, according to analysis by the University of Illinois Regional Economics Applications Laboratory (REAL). Area REALTORS® have finger-on-the-pulse of where jobs are coming from. Namely, the U.S. Army Rock Island Arsenal, aluminum manufacturer Alcoa and Deere & Company.

“Alcoa brought back everyone they laid off and have hired 200 more,” says REALTOR® Ann Cunningham, broker-manager of the Moline office of Ruhl&Ruhl which has 250 residential agents plus 36 commercial/relocation/property management sales associates spread across 11 offices in Illinois and Iowa. A strong and diverse employer base certainly has helped the region which is a major manufacturing, transportation and warehousing hub.

“Business is booming, parking lots are full everywhere,” she says. “My husband and I kid that the economy’s bad but we can’t get a table at Applebee’s.”

She predicts the area’s spring market will begin soon. “We are constantly prospecting and marketing. That’s why our spring market starts in February.”