“It’s encouraging to see that the UofU’s commitment to research and technology commercialization is paying off, said Spencer Eccles, executive director for the Governor’s Office of Economic Development.  “It further validates the foresight of Utah’s leadership and State government’s commitment to support innovation and commercialization in Utah.” 

Mr. Eccles went on to note that, “Initiatives such as the Utah Science Technology and Research (USTAR) program and our State economic development focus on targeted industry clusters powerfully integrates with the University’s innovative research.  The UofU has also strengthened our workforce through the high quality education its students receive. Our business community consistently benefits by tapping into this recruitment resource.”

According to AUTM, the University of Utah started 20 new companies in fiscal year 2008 from technologies based on its varied research. For the previous two years, the University of Utah has ranked second to MIT.  Jack Brittain, the university’s vice president for technology venture development noted “This years ranking came as a pleasant surprise because this ranking is based on 2008 data when the university’s operation was still growing and implementing new programs.”

The University of Utah’s accomplishment is even more significant because MIT received almost five times more research funding, $1.3 billion, compared with Utah’s approximately $273 million. On average, universities ranked by the annual AUTM survey receive approximately $288 million in research funding.

“Much of this success is the result of the support we provide new companies. Although the path to success can be long and challenging, we try to shorten the time frame to success by supporting these young companies,” said Brian Cummings, director of the University of Utah’s Technology Commercialization Office (TCO).

The support from the State of Utah and the local business community is one reason why the University of Utah has been so successful in getting new companies started,” said Cummings. “The state has established an extremely friendly climate for entrepreneurs. The results are reflected by these national rankings.”

Now Forbes magazine has published a ranking that may shed a new light on one of the key reasons Utah enjoys these accolades; debt or the relative lack of it!.

Among all 50 States, Utah came out first in its prudent handling of debt. Forbes magazine considered a dozen or so factors, including unfunded pension liabilities, changes in tax revenue, debt as a percentage of GDP, debt per capita, growth expectations for employment and the state economy. Other considerations that went into the Forbes scorecard were net migrations and a “moocher ratio” that compares government employees, pension burdens and Medicaid enrollees to total private-sector employment.
Utah finished first overall thanks to AAA ratings from both Moody’s and Standard & Poors. A low debt per capita of only $447 also helped elevate Utah to first place.

“As Governor, I am happy to accept this No. 1 ranking on behalf of everyone involved in keeping our great state financially sound. From the Legislature’s continued fiscally conservative nature to our state agencies’ prudent management of their budgets, our mutual efforts continue to benefit all citizens of the State of Utah,” Governor

Gary R. Herbert said. “Despite current economic conditions, we have been able to meet our most critical needs and, I believe, will continue to do so while protecting public and higher education and not burdening Utahns with economy-stifling tax increases.”

Spencer Eccles, executive director of the Governor’s Office of Economic Development noted, “This ranking from Forbes will go a long way to help us in our daily effort to increase business growth and job development in the State.”

New Hampshire, Nebraska, Texas and Virginia followed Utah in the top five states . California, Connecticut, New York and Illinois were among the states with the worst debt ratios.

Overall, more than 2,400 single-family homes were sold in the fourth quarter, a 36 percent increase compared to 1,785 sales in the same quarter in 2008. Home sales also showed a 19 percent gain in the month of December compared to the same month a year earlier.

“Nearly every ZIP code in Salt Lake County saw double-digit increases in home sales,” said Bill Heiner, president of the Salt Lake Board of REALTORS. “Existing home sales are surging because of more affordable home prices and the federal government’s home buyer tax credit. In addition, there are fewer newer homes being built. Because of that buyers are turning to existing inventory.”
 
Single-family home sales were up 113 percent in Holladay in the fourth quarter compared to last year. In Midvale, sales rose 109 percent. In Draper, sales were up 52 percent. In West Valley, home sales climbed 38 percent.
 
In the 12 months ended Dec. 31, there were 9,146 single-family homes sold in Salt Lake County, up 4 percent compared to 8,796 sales in 2008. The rise in home sales in 2009 ends a three-year downturn in annual single-familyhome sales and suggests that the bottom of the housing market occurred in 2008.
 
Home sales in 2010 could reach as high as 10,000 units sold, a nearly 10 percent rise over 2009 levels, according to a 2010 Housing Forecast commissioned by the Salt Lake Board of REALTORS.
 
Condominium sales across Salt Lake County also showed huge increases. In the fourth quarter, there were 544 condossold, up 42 percent compared to 384 sales a year ago.
 
Across the Wasatch Front, sales of single-family homes also surged. Sales were up 26 percent in Davis County. In Tooele County, sales increased 61 percent. In Utah County, home sales were up 46 percent. In Weber County, salesrose 19 percent.
 
“The anticipated expiration of the first-time home buyer tax credit brought strong support to Wasatch Front housingmarkets,” said Lerron Little, 2010 president of the Utah Association of Realtors. “Utah County home sales were particularly strong as buyers found affordable home options and good values. The area’s increase in single-family and condo sales was the highest on fourth quarter records dating back to 1996.”
 
The past housing downturn in Salt Lake County ranks No. 2 in terms of its severity, according to the Salt Lake Board of REALTORS. The area’s most severe housing downturn began in 1977 when home sales fell by 55 percent over a four-year period.

As reported by Commerce Real Estate Solutions: In November the Revenue Assumption Committee released projections of Utah’s major economic indicators. These projections show that by 2011 the number of jobs in the Utah economy will increase by about 20,000.

Welcome news after two years of serious decline. If the national economy is through shedding jobs, as the recently released November employment numbers suggest, a turnaround for the Utah economy should be on track for 2011. All major indicators turn positive by 2011 with the exception of nonresidential construction, which is projected to have an 11 percent decline in construction value in 2011.

Employment - The rate of employment decline likely touched bottom in the third quarter of 2009 at slightly more than negative five percent. Through the next three quarters the number of jobs in Utah will continue to be lower than the same month the previous year, but those declines will get smaller and smaller, finally turning positive by the third quarter of 2010. The rebound will take some time to gather momentum, but by 2011 the Utah economy should expand by about 20,000 jobs, or 1.7 percent growth. If job growth reaches 2.5 percent in 2012 and 3.0 percent in 2013 the number of jobs will rise to 1.25 million, the level of 2008.

The Utah Department of Workforce Services has made projections at the broad 11 sector level. By 2011 the projection for manufacturing jobs, a large and important sector, shows little improvement, however, construction employment is expected to increase by 4,500 jobs. The greatest gain will be in the health care sector, which will increase nearly 12,000 jobs over the next two years.

Unemployment – Utah’s unemployment rate will peak in 2010 at 6.8 percent and drop slightly in 2011 to 6.4 percent. The historic (1950-2008) average unemployment rate in Utah is 5.0 percent. This historic average includes the 1960s and 1970s when the unemployment rate rarely dropped below 5.0 percent. Shortening the time horizon to 1990-2008 yields an average unemployment rate of 4.1 percent for Utah. It will probably take four to five years for unemployment in Utah to get back down to 4.1 percent.

Wages – Total wages paid actually held up quite well during the recession, not falling nearly as much as employment. Wages paid peaked in 2008 at $46.9 billion, but are projected to fall 4.2 percent through 2010 to $44.9 billion. By 2011 total wages paid will be restored to the level of 2008, nearly $47 billion.

The average annual wage in Utah in 2009 was $37,764, only one percent higher than in 2008. The growth rate in average annual wage in Utah has remained positive throughout the recession, however, the state’s average wage is only 79 percent of the U.S. average wage of $47,714.

Wages are included in the broader measure of personal income. Personal income also includes dividends, interest, transfer payments (retirement, Social Security, food stamps) and self-employed earnings. Personal income in Utah in 2009 was $81.8 billion compared to total wages of $45 billion. During the recession personal income has fared even better than total wages paid. The growth in total personal income was negative in only 2009 with a slight 1.3 percent decline. In 2010 personal income is projected to be up 2.0 percent and in 2011 4.5 percent.

Demographics – Utah’s annual population growth rate has fallen to about 1.7 percent. This level is near the floor for demographic growth in Utah. Utah’s age structure and high fertility rate results in around 55,000 births annually. Deaths total nearly 14,000 annually. Therefore, the natural increase of births minus deaths is 41,000, which guarantees growth of about 1.5 percent and anything above this rate reflects net in-migration.

Utah’s population growth rate has not been below two percent since the 1980s when the state suffered high rates of net out-migration. In 2009 net in-migration fell to only 1,500. By next year net in-migration is projected to increase to 8,000. In 2007 net in-migration peaked in Utah at 44,250.

Retail Sales – Retail sales are expected to be at $24.3 billion in 2009, 8.1 percent lower than in 2008. A modest rebound of 2.2 percent is forecast for 2010, followed by a 3.4 percent gain in 2011. Nevertheless, it will probably take until 2012 for retail sales to return to the pre-recession level of $26.5 billion. Building/garden and furniture are two of the hardest hit sectors, down 20.6 percent and 24.1 percent respectively. The motor vehicle sector’s woes continue as second quarter sales were down $300 million. For the year, motor vehicle sales will be down close to $1 billion, well over 20 percent. Vehicles sales in Utah peaked in 2007 at 115,000 vehicles. By 2011 sales are projected to be back to 78,800 vehicles, a good increase over the trough of 65,600 vehicles in 2009, but still well below the peak year of 2007.

Residential Construction – This past year was the fourth year of the residential contraction. No residential construction contraction in Utah’s postwar history has lasted longer than five years and there are hints in recent data that a turning point may have been reached for the state’s home building industry. It is likely, however, that 2010 will be very similar to 2009, at around 10,000 new dwelling units receiving permits; with new detached single-family homes accounting for 5,500 –units, and multifamily units (condominiums, town homes and apartments) accounting for 4,500 units. The rebound for housing is expected in 2011, with the number of new dwelling units rising to 13,000, a 30 percent increase.

 - Excess capacity and rising vacancy rates will probably result in further declines in 2010. The value of permit authorized nonresidential construction will likely drop below $1 billion in 2010. The loss of 60,000 Utah jobs in 2009 has hurt the demand for office, retail and industrial space and will continue to be a problem into 2010-11. The rebound for this sector will likely not occur until beyond 2011.

The forecast for Utah’s economic indicators shows that the worst is probably over for the Utah economy. The most difficult years were 2008-2009 with modest improvement expected in 2010 and accelerating improvement into 2011.

The second biggest percentage increase in an October month was in October 2005 when home sales rose 22 percent year-over-year. The large rise in home sales suggest that buyers are finding renewed confidence in the market.

“Clearly the federal home buyer tax credit played a significant role in boosting home sales,” said Ryan Kirkham, president of the Salt Lake Board of REALTORS. “Of course, mortgage interest rates remain at record lows and home prices in the Salt Lake area have again reached affordable levels.”

The median price of homes/condos sold in October was $205,000, down 9.5 percent compared to the median price of $226,500 in October 2008.