Good News From Westwood

Good News From Westwood
By: Nicholas A. Dunlap, CPM

UCLA’s School of Economics announced today its beliefs that the State of California is just a year away from economic recovery. Though unemployment will remain in the double digits through the end of 2011, by 2012 UCLA projects the unemployment rate at just below 10%. While there was little activity anticipated for the remainder of 2010, it was suggested that by 2011, things will pick up. Could this be UCLA factoring in the potential election of a business minded professional (Yes, a Meg Whitman endorsement) to turn things around for the State of California? After all, our gubernatorial election is being held in November.

The school went on to state that while Green or environmentally efficient jobs will be added, they will not be a significant source of growth. That said, California is predicted to remain slightly above the national unemployment average of 9.3% in 2011. What’s more, come 2011, UCLA predicts that personal income levels will begin to grow at a more consistent, shall we say “normal” pace. The growth rate? 3.7% per year.

The forecast released by UCLA today seems to slightly echo what Anil Puri of the CSUF School of Economics said last October. Puri projected that 2010 would remain somewhat flat, but that the end of the year and beginning of 2011 should begin to welcome an increase in job opportunities. As income property owners and operators, we understand that jobs and rising income levels are synonymous with rent growth. After a down year and a flat year, will 2011 be the year of the increase? We shall see.