Economic Base Analysis In Action | Zyn It To Win It!

Summary

In this episode, Bo and Timmy discuss the economic impact of new jobs in Owensboro, Kentucky. After Gov. Andy Beshear announces that new dollar bills are coming to the community because of Zyn, they analyze the difference between basic and non-basic jobs and explain how basic jobs create a multiplier effect in the local economy. They use economic base analysis to determine the impact of 400 new basic jobs, which leads to a projection of 2,684 total new jobs. They also calculate the population employment ratio and predict a population increase of 5,395 people. Finally, they discuss the impact of these new jobs on retail demand and disposable income. In this conversation, Bo Barron and Timmy Barron discuss the impact of job announcements on various sectors of the real estate market in Owensboro, Kentucky. They analyze the potential demand for multifamily housing, retail space, and office space based on the projected increase in population and disposable income. They also highlight the importance of maintaining a certain level of vacancy in the office market to ensure efficiency and flexibility for businesses. Overall, the conversation provides valuable insights for real estate professionals and business owners in Owensboro.

Takeaways

Basic jobs have a multiplier effect in the local economy, creating non-basic jobs and increasing economic activity. The economic base multiplier can be used to predict the total number of jobs that will be created as a result of new basic jobs. The population employment ratio can be used to estimate the increase in population due to new jobs. Retail demand is driven by disposable income, which can be influenced by the increase in population and employment. Understanding the impact of new jobs on the local economy is crucial for commercial real estate professionals. Job announcements can have a significant impact on the real estate market, creating demand for various types of properties. Projected population growth and disposable income can help predict the demand for multifamily housing and retail space. Maintaining a certain level of vacancy in the office market is crucial for efficiency and flexibility for businesses.

Chapters

00:00 Introduction and Subscriber Update 03:26 Announcement of New Jobs in Owensboro 11:53 Understanding Basic and Non-Basic Jobs 19:13 Calculating the Economic Base Multiplier 25:46 Predicting Population and Employment Growth 32:13 Impact on Retail Demand 39:50 Calculating Disposable Income and Retail Demand 42:46 The Impact of Job Announcements 45:21 Predicting Demand for Multifamily Housing and Retail Space 53:23 The Need for New Rental Units 57:02 The Importance of Vacancy in the Office Market 01:09:21 Demand for Office Space 01:13:19 The Need for More Office Space

📒Show Notes📒

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Bo is a CCIM Instructor and the owner and operator of Barron Commercial Group servicing Western KY and it's surrounding markets. For all CRE inquiries visit http://www.barroncommercial.com

Timmy is an actor, comedian, writer and host. You can follow him pretty much everywhere @timmyhartbarron