Lodging numbers for Cedar City LDS Temple open house below expectation

The three-week open house for the new Latter-day Saints temple brought more than 180,000 people to Cedar City last year, but recently released numbers show many of the visitors didn’t stay overnight.

Tours of the interior and grounds of the new temple ran from Oct. 27-Nov. 18. According to the results of Cedar City’s municipal transient room tax (TRT), approximately $20,447 was generated in 2017 — $388 more than the area saw the year prior.

November saw the biggest impact with a nearly $5,000 increase to approximately $14,373 in reported TRT compared to $8,936 in 2016. The 4.25 percent tax is added onto every room night sold at lodgings in Iron County. Cedar City also has an additional 1 percent municipal tax. The numbers were significantly lower than Iron County/Brian Head Tourism Bureau officials expected. The Spectrum

Housing Report Shows Nation Still Down Over 2008

The housing markets in Utah's most populous counties have endured four challenging years, according to a new report.

Based on five key metrics related to the nation's housing market — average home price, unemployment rate, foreclosure inventory, foreclosure starts and share of distressed sales — the U.S. housing market comes out worse off than it was four years ago, with a several Utah counties hit especially hard.

The 2012 Election Housing Report showed that the average price of a residential property nationwide has decreased 20 percent during the past four years — leaving more than 12 million homeowners owing more than their property is worth, according to RealtyTrac, a market research firm based in Irvine, Calif.

What that numbers don't reflect is the upward trend during the past year in the housing market and the peak periods of foreclosure which kept numbers low during the past few years.

All six Beehive State counties in the report saw unemployment rates nearly double or exceed that amount, from at least 3 percent in 2008 to 6 percent or greater in 2012, while four counties saw the volume of foreclosure starts jump more than double during the period.

But the Utah unemployment rate continues to be better than the national average and the growth in exports also points to an economy on the rebound.

Despite the report's poor numbers, the state's housing market has steadily improved during the past year, and Utah has one of the lowest overall unemployment rates in the country — more than 25 percent below the national rate of 7.8 percent.

Daren Blomquist, vice president of marketing for RealtyTrac, said the foreclosure market is improving nationwide, which bodes well for Utah and most other states.

However, the positives of lower foreclosure inventory and fewer foreclosure starts are outweighed by the negatives of lower home prices, higher unemployment and a higher share of distressed sales, the report stated.

Nationwide, in the 919 counties with data available for all five metrics, 580 (65 percent) showed at least three out of the five key metrics worse off than four years ago, while in 315 counties (35 percent) at least three of the five key metrics were better off than four years ago. Deseret News

Five Utah School Districts to Apply for Millions in Federal Cash

At least five Utah school districts plan to vie for millions in federal cash as part of the U.S. Department of Education’s Race to the Top District program.

The Granite, Ogden and Provo school districts plan to seek $20 million to $30 million each; the Morgan County School District will likely apply for $5 million to $10 million; and the Washington County School District plans to apply for $30 million to $40 million, according to the U.S. Department of Education.

The five districts are among 893 nationwide that have submitted letters saying they intend to apply for a chunk of nearly $400 million meant to support reforms aimed at personalizing learning, closing achievement gaps and preparing kids for college and careers.

The department has previously held Race to the Top competitions for states as well. Utah, as a state, applied for a $175 million Race to the Top grant in 2010 but did not win one. Salt Lake Tribune

Construction on Utah university campuses marks growth

Construction projects at universities across the state point to a steady stream of students staying on campus in addition to schools increasing online options.

Every four-year school in Utah has construction under way, from full-scale building expansion at the University of Utah to projects as small as a ramp connecting the upper and lower campus at Southern Utah University to create wheelchair access.

While enrollment numbers are still in flux, representatives from the University of Utah estimate an increase of more than 600 students on campus this semester, as compared to 2011. University officials reported 31,950 students enrolled last year, and had 32,592 enrolled in this first week of the semester.

Weber State University, traditionally a commuter campus, is increasing options for a traditional college atmosphere. The open-admissions school is in the home stretch of its three-building campus housing project. Stewart Wasatch Hall, the second building in the Wildcat Village project, is filled to capacity for its inaugural semester. Ground has been broken for the final building.

Officials at Utah State University are anticipating their enrollment numbers to be even with last year, keeping on par with a 10-year growth trend. Trent Hunsaker, USU marketing director, said students are still seeking out a traditional on-campus experience.

In Southern Utah, Dixie State College is preparing to dedicate its Jeffrey R. Holland Centennial Commons on Sept. 7. The school received $35 million from the Utah Legislature in 2010 for the building's construction, on top of $3 million in 2009 legislative funding that went into planning, according to a Dixie news release. The six-story building houses a library, the English department, classrooms and student services including registration and financial aid. It is part of the school's plan to manage ongoing growth. Deseret News

Utah among states to get funds for job training programs

This week, U.S. Secretary of Labor Hilda Solis and Martha Kanter, undersecretary of education, announced nearly $500 million will be given to community colleges across the nation in order to better provide training and workforce development. Among those recipients, Utah will receive $2.7 million over the next three years. The funds will be distributed among Salt Lake Community College, Snow College, Dixie State College, Utah Valley University, Weber State University and the Utah College of Applied Technology. Deseret News

Utah hotels show strong August

Hotel occupancy rates statewide increased to 73.9 percent, up 4.4 percent from the previous August. An even greater gain occurred in Salt Lake County, home to nearly half the state’s rooms, with monthly occupancy rising to 80.9 percent. That was up 5.2 percent from the same month a year earlier and 10 percent since August 2009, according to the Denver-based Rocky Mountain Lodging Report. Cedar City and Davis County were the only hotel hubs to register year-over-year declines in occupancy, but both drop-offs were slight. Salt Lake Tribune

Utah gets $12.6M in transportation grants

U.S. Transportation Secretary Ray LaHood announced this week $12.6 million in grants to Utah. Among grants were $1.74 million for four miles of safety shoulders for bicyclists in Little Cottonwood Canyon and installation of avalanche-control systems there, along with $500,000 for three miles of safety shoulders for bicyclists in neighboring Big Cottonwood Canyon. Also, $1.63 million was awarded for the Provo Intermodal Center; $3.75 million for rehabilitation of Interstate 80 from Wanship to Coalville; $1 million for improvements to an Interstate 84 bridge over the Echo Frontage Road; and $963,673 to help build a rest area at Lion’s Park Scenic Byway near Moab.

Other projects receiving money include $480,000 for safety upgrades and parking facilities along Scenic Byway 12 in Garfield and Wayne counties; $465,540 for construction of Midblock Road in Holladay between Laney Avenue and the Murray-Holladay Road; and $150,000 to replace an obsolete bridge on State Road 39 over Beaver Creek east of Huntsville. Salt Lake Tribune

New Total Personal Income Estimates at the Metropolitan Statistical Level

The U.S. Bureau of Economic Analysis (BEA) has just released 2010 total personal income estimates for U.S. Metropolitan Statistical Areas (MSAs). According to BEA, personal income rose in 2010 in all but four of the nation’s 366 metropolitan statistical areas. Fortunately, none of Utah's five MSAs ranked among those with declining personal income. On the other hand, some MSAs performed far better than others. Overall, personal income in the U.S. increased 2.9 percent between 2009 and 2010. Here's a few highlights of the MSA stats:

Logan, UT-ID MSA--Personal income in this MSA totaled $3.4 billion in 2010, an increase of 4.1 percent from the previous year. This ranked this MSA 53rd in terms of growth--the highest of any Utah area. This area also showed the highest gains in net earnings--3.4 percent.

Ogden-Clearfield, UT MSA-- In 2010, personal income in this MSA reached $18.2 billion reflecting a 2.7 percent gain over 2009. This MSA showed the third highest growth in personal income among Utah MSAs and ranked 197 (out of 366 MSAs) nationally.

Provo-Orem, UT MSA--With total personal income expansion of 2.8 percent, this MSA tied for second in the Utah ranking and 179 nationally in terms of 2010 growth. During 2010, total personal income measured roughly $13.4 billion.

 St. George, UT MSA--This MSA showed the worst growth performance in the state. Between 2009 and 2010, personal income increased only 1.5 percent to equal $3.6 billion. Still suffering from the economic downturn, net earnings in this MSA dropped by 1.1 percent--the only decline among the Utah MSAs. Nationally, St. George ranked 344 for percent growth nationally.

Salt Lake City, UT MSA--Utah's most populous MSA experienced a 2.8 percent increase in total personal income during 2010. That places Salt Lake City in the number 176 spot for growth among MSAs nationwide. Here, total personal income is estimated at $43.6 billion.

For the complete release on personal income from the Bureau of Economic Analysis, click here.

Feds help pay for Utah’s flood damage

Utah will receive federal aid to pay for this spring’s flood damage. President Barack Obama signed a Utah disaster declaration and ordered federal funds to supplement the recovery effort from flooding between April 18 and July 16.

The funds are available to state, tribal and eligible local governments, and certain private nonprofit organizations, on a cost-sharing basis for emergency work and repair or replacement of facilities damaged by the flooding in the counties of Beaver, Box Elder, Cache, Daggett, Duchesne, Emery, Millard, Morgan, Piute, Salt Lake, Sanpete, Sevier, Summit, Tooele, Uintah, Utah, Wasatch and Weber, and the Uintah and Ouray Indian Reservation. The state could be eligible for $9.5 million in federal aid. Salt Lake Tribune

Has Utah's housing bubble deflated yet?

Housing bubbles aren't like most price bubbles. Typically, speculation drives up prices (of stocks, crude oil, and back in the 17th century even tulips) like an expanding bubble. Eventually, it becomes obvious that item is extremely over-valued and prices "pop" and collapse. Yes, that's why we call them bubbles.

Remember a couple of years ago when gasoline prices went through the roof? You can blame a bubble market in crude oil. (Some SEC reports indicated that 80 percent of crude oil trading during the height of that price expansion was speculative.) In just seven months, the producer price index (seasonally adjusted) for crude oil went from 339.9 to 108.8. That change represents a decrease of almost 70 percent! Talk about a popping bubble. (And, you might want to note the similarity to the current price increases in oil/gasoline.)

On the other hand, housing bubbles tend to slowly deflate rather than pop. Why? Think about it. If you bought a home at the height of the bubble for $400,000 do you really want to sell it for $250,000? No. Most private individuals aren't able to afford that kind of loss. For many American families, a home is their largest asset. So, if you must sell, you will keep trying to sell at a higher price until the market makes it clear that just isn't going to happen. In other words, home prices are sticky downward, so it will take longer for home prices to deflate after the speculation ends.

It also becomes readily apparent why there is such a foreclosure mess in this country. Obviously, many home-buyers took out loans they couldn't afford in the long run. Then, the recession exacerbated other home-buyers' ability to pay. In addition, even if home-buyers can afford to make their payments, aren't the incentives skewed towards walking away rather than paying off the $400,000 mortgage on a home that is now worth only $250,000?

Well, this housing bubble has certainly taken its time collapsing. However, the market is working her magic and there does seem to be light at the end of the tunnel--at least according to the Federal Housing Finance Agency's Housing Price Index (HPI). (For more information on the HPI see this previous post or the Agency's website.)

(Click on image to enlarge.)

The chart that accompanies this posting certainly provides a lovely portrait of a housing market bubble for Utah's Metropolitan Statistical Areas (MSAs)--particularly for my own Washington County. You can watch home prices explode and then collapse (the chart shows the percent change compared with the same quarter a year ago--which eliminates seasonality).

The Logan, UT MSA (Cache County) seemed to participate the least in the run up of home prices and also appears closest to the end of the price declines. As of fourth quarter 2010 (the most recent index available):

• Logan home prices are down only 1.0 percent compared with prices in fourth quarter 2009.
• Ogden-Clearfield MSA home prices are down 1.8 percent.
• Salt Lake City MSA prices are down 2.0 percent.
• Provo-Orem MSA prices are down 2.4 percent.
• St. George MSA prices still show the largest price declines--4.8 percent.

However, for all MSA the price declines are getting smaller and smaller. The market is making her adjustments. In fact, given current trends, most if not all of Utah's MSAs are poised to see the end of home price declines in 2011.

Utah wilderness, youth therapy programs closing

A wave of closures and consolidations in wilderness therapy and youth treatment programs in Utah will take nearly 200 jobs from Wayne County alone. Three programs for troubled young people, owned by Aspen Education Group, constitute the biggest employer in the county.

CRC Health Group, Aspen’s California-based parent company, will close two programs in Utah: An equine and behavioral therapy boarding school in Wayne County, and a substance abuse treatment facility for teens in St. George. Another Wayne County drug rehab program will move to Idaho. The state’s longest-running wilderness therapy program, Aspen Achievement Academy, will move from Wayne County to Lehi and merge with another program, Outback Expeditions. A live-in treatment center for teens in Draper will merge with a similar facility in Syracuse. Salt Lake Tribune

Metropolitan GDP figures released

The U.S. Bureau of Economic Analysis (BEA) has just released 2009 estimates of Gross Domestic Product for Metropolitan Statistical Areas (MSAs) across the nation. (Yes, that's not a "typo" 2009 data is the most recent information available for MSAs.) Given the economic downturn, it may be surprising that only 80 percent (292 of 366) of the nation's MSAs experienced a decline in real (inflation-adjusted) gross domestic product.

How did Utah's MSAs perform? Three of five Utah MSAs showed an increase in gross domestic product in 2009--Logan, Salt Lake City, and Ogden-Clearfield. In fact, the Salt Lake City MSA (which includes Salt Lake, Tooele, and Summit counties) placed in the top quintile of all MSAs. The gains weren't phenomenal (just under 1 percent), but during a recession, any gains are certainly welcome.

The St. George, UT MSA (Washington County) produced the worst Utah decline in GDP during 2009--3.4 percent. Of course, the St. George area participated in housing market speculation to a much greater degree than any other area in the state. Indeed, Washington County's decrease placed it in the lowest quintile of all MSAs. It's performance ranking? It ranked 310 out of 366 MSAs. In addition, Provo-Orem experienced a 1.7 percent drop.

For more information on recent GDP performance: http://www.bea.gov/newsreleases/regional/gdp_metro/gdp_metro_newsrelease.htm

Home prices hit post-bust lows in most big cities

Home prices in a majority of major U.S. cities tracked by a private trade group have fallen to their lowest levels since the housing bubble burst. The Standard & Poor’s/Case-Shiller index fell in December from November in all but one of the 20 cities it tracks. The 20-city index declined 1 percent.

The only market to see a gain was Washington, D.C. Along Utah’s Wasatch Front, according to a Jan. 27 report, the residential real estate market, mired in one of the worst downturns ever, is showing a few signs of improvement.

In Salt Lake County, 1,934 existing single-family homes were sold in the fourth quarter of 2010, down 21 percent compared with the fourth quarter of 2009, according to the Salt Lake Board of Realtors. The median selling price was $215,000, down 4.4 percent from the same three-month period in 2009 and off a peak of $256,000 in the summer of 2007. Salt Lake Tribune

Note: The Federal Housing Finance Agency also publishes the Housing Price Index for all Metropolitan Statistical Areas (MSAs). The following chart shows the year-to-year change in the index for Utah MSAs. The most current index is for third quarter 2010. A bottom to housing prices according to this chart would occur when the year-to-year is equal to zero. At this point, the Logan, UT MSA is closest to a bottoming in prices, followed by the Ogden-Clearfield MSA. Not surprisingly, these two areas experienced the lowest level of speculation in the housing market. You can access this information at: http://www.fhfa.gov/Default.aspx?Page=14

For Utah hoteliers, 2010 better but not real good

Compared with a year earlier, occupancy rates last month were up 1.7 percent statewide and 2.6 percent in Salt Lake County. With those lukewarm results, hotels statewide finished the year with a 59.7 percent occupancy rate, up from 56.9 percent in 2009. Although an improvement, the number of rooms filled nightly remained significantly below levels in 2008 (63.7 percent) and 2007 (68.4 percent). In addition, the downturn continued to impact the amount of money hoteliers could charge for their rooms. The average nightly room rate in 2010 was $93.29, about 75 cents cheaper than a year earlier but $5 a night below the going rate in 2008.

The Lodging Report breaks Utah down into nine areas. Six regions had better years in 2010 than in ’09, led by 4.9 percent gains in Logan and 4.4 percent gains in St. George. Scattered hotels outside of Utah’s main metropolitan areas did even better, filling 5.2 percent more rooms than a year earlier. Small declines occurred in Ogden and Davis County. Salt Lake Tribune

9 Utah solar energy projects receive Blue Sky money

Rocky Mountain Power's Blue Sky program is helping fund the construction of nine community-based renewable energy projects in the state. Overall, more than $938,000 was awarded for 12 projects in Utah, Wyoming and Idaho, including 11 solar projects and one wind project. The funding is made possible through participating Blue Sky customers, who number more than 34,000. Deseret News

Utah leaps ahead with luxe ski area lodging

Newcomer properties Montage Deer Valley, the St. Regis Deer Valley, and the Waldorf Astoria Park City were financed before the real-estate bust, as part of the development that followed the 2002 Salt Lake Olympics. All three were built in the Park City area during the recent recession. And now are setting a new standard of luxury in Utah to match anything in Colorado or British Columbia. Nathan Rafferty, president of the trade group Ski Utah, said the new hotel developments are a "huge deal" that show resort operators are "bullish on Utah," where skiing is a $1 billion-a-year industry. He added, "They have to know something."

Snowbird is seeking to extend skiing to nearly 11,500 feet in elevation with a tram from its summit to a higher peak. Resorts on both sides of the narrow Wasatch mountains are discussing a common ticketing system and additional lifts that could let skiers glide effortlessly from one resort to the other, possibly within a few years. Some of the seven Wasatch resorts that practically rub shoulders have opened their borders to a neighbor, but the plan is get all or most of the resorts to join together.

Snowbasin, another Wasatch resort that stands apart near Ogden, has filed ambitious all-season and lodging resort plans for government approval. A New York hedge fund, meanwhile, is opening Utah's 14th ski area dubbed Eagle Point, the former Elk Meadows in the spectacular Tushar mountains in Beaver County. Deseret News

Census Bureau Releases American Community Survey data for 2009

The U.S Census Bureau has released the 2009 American Community Survey (ACS) 1-year estimates on American FactFinder. There you will find tables with social, demographic, housing, and economic data for areas with populations of 65,000 or more. The American Community Survey provides a wealth of demographic, social, economic and housing data. For example, here is where Utah ranks among all U.S. states and the District of Columbia in 2009.

Utah ranks:

• Forty-ninth for the percent of households with one or more person 65 years or older.
• Number one for the percent of households with one or more person under 18 years of age.
• Fifty-first for the percentage of people with a disability.
• Eighth for the percentage of people over 25 who have graduated from high school.
• Twentieth for the percentage of people over 25 with at least a Bachelor's degree.
• Thirty-fourth for the percent of married couples with both spouses in the labor force.
• Forty-eighth for the percentage of children in poverty.
• Twelfth for the percentage of children without health insurance coverage.
• Twentieth for the percentage of the population without health insurance coverage.
• Fifth for the percentage of homes built since 2005.
• Twenty-first for median family income.
• Twenty-second for the percentage of the population that is foreign born.
• First for average household size.
• Forty-ninth for the age of women at first marriage.
• Forty-first for the average travel time to work.
• Eighteenth for the percentage of the population that is white/not Hispanic.
• Sixteenth for the divorce rate for women.

Data for 2009 are available for the state, Cache, Davis, Salt Lake, Utah, Washington, and Weber counties. Three-and five-year estimates will be available for the remaining counties in three to four month.

Click here to access the data.

Good August aids Utah lodging industry’s slow recovery

With August being a “bread and butter” month, a notable increase in occupancy levels and nightly room rates last month was another sign of recovery — albeit a slow one — for the Utah lodging industry. Hotels statewide filled 69.5 percent of their rooms last month, up almost 6 percent from August 2009.

In Salt Lake County, home of roughly half the state’s hotel rooms, the occupancy rate hit 75.7 percent, compared with 66.8 percent a year earlier. Nightly room rates were up, too — almost $4 a night statewide (to $92) and $6 nightly (to $96) in Salt Lake County.

Occupancy numbers were up “in almost all parts of the state. It’s really nice to see Cedar City up at 74 percent occupancy and Davis County at 81 percent.” The Salt Lake Tribune

Hotels see boost in May

Utah hotels saw a nice little bump in business last month, especially compared with May 2009. Typically a slow travel period, May of last year was even worse than usual, with hotel occupancies across Utah dropping to less than 55 percent each night.

But this May, hotels statewide were 59 percent full on a nightly basis. The average daily room rate did not increase commensurately, but pretty much held steady.

Although occupancy was up 4 percent, the statewide room rate could not keep pace. Still, it rose about $1.50, to $86.70 nightly last month, according to figures from the Denver-based Rocky Mountain Lodging Report. The Salt Lake Tribune

Utah Hotel Occupancy

Hotels statewide generally filled more rooms last month than in May 2009 (in parenthesis):

Salt Lake County » 66.3 percent (59.4)
Ogden » 68.5 (67.2)
Davis County » 68.3 (68.0)
St. George » 59.0 (54.4)
Utah County » 58.9 (55.0)
Logan » 52.3 (37.4)
Cedar City » 46.5 (51.9)
Mountain resorts » 24.9 (25.7)
Rest of Utah » 71.4 (68.3)
Total » 59 (54.9)

Source » Rocky Mountain Lodging Report

Home prices still falling in Utah's metropolitan areas

According to information released by the Federal Housing Finance Agency, home prices have yet to bottom-out in Utah's various Metropolitan Statistical Areas. Compared to prices a year ago, St. George MSA prices are down almost 18 percent, prices in the Provo-Orem MSA are down 13 percent and the Salt Lake City MSA prices are down about 10 percent. Both the Ogden-Clearfield MSA (down 6 percent) and the Logan MSA (down 3.4 percent) show slower home price declines.