Beacon Economics has a new report out with details on the U.S. economy and its growth possibilities.
We’re most interested in the California study, which points to the state having huge opportunities for growth in the medium term, after the difficulties of the housing bubble and financial crisis come to a close.
Check Out Why Beacon Is Optimistic On California >
Specific parts of California got hammered by the subprime mortgage meltdown, namely Inland Empire in Southern California and the East Bay area in Northern California.
The stark highs and lows of the housing bubble hit most here, and impacted the broader economy.
Source: Beacon Economics
California endured its housing decline early in 2007 and continues to do so.
Source: Beacon Economics
California has beaten the whole of the United States in real economic growth for the past 10 years, notching a 3.7% growth rate while the rest of the country mustered 2.7%.
Source: Beacon Economics
Demand for housing still exists due to a rising population. The result will be higher housing prices, though not at the rates seen before the bubble collapse.
Source: Beacon Economics
Construction is going to benefit from population growth in California, and single-family homes and non-residential are going to be at the centre of that growth.
Source: Beacon Economics
Taxable sales have been in decline since the crisis began though they look to be growing now.
Source: Beacon Economics
Household debt skyrocketed during the bubble, but now many are paying back that debt as the savings rate increases.
Source: Beacon Economics
While personal income levels dipped during the housing collapse, the trend is upward.
Source: Beacon Economics
And forecasts look positive, with a return to significant growth imminent.
Source: Beacon Economics
California is extremely well educated compared to the rest of the U.S.. And with the economy drifting towards more high-skilled labour positions, as many low-skill jobs are exported, it looks ready to take advantage of further opportunities.
Source: Beacon Economics
California's population and its share of U.S. GDP explain just how important it is to the U.S. economy.
Source: Beacon Economics
Population growth in California has bested the U.S. overall since 1971 except in the mid-1990s.
Source: Beacon Economics
The increasing population and wages mean the California will be able to pull in more tax revenue.
Source: Beacon Economics
While cuts are being made, the increase in population and wages will provide some of the taxable income necessary to meet California's funding commitments.
Source: Beacon Economics
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