Employment Boom...
Publication: Mississippi Business Journal
Delivery: Immediate Online Access
Author: Kirkland, Elizabeth
Full Article:
Rankin, Madison, DeSoto, Lee, Forrest, Lamar, Harrison, Hancock and Jackson counties: they all have one thing in common -- booming residential real estate markets.
These areas all have traditional benchmarks for growth in their residential markets, including excellent educational systems, fire, police and medical coverage. But they also have their differences.
Certain real estate markets are considered "hot" because of the market they are in, said Scott Brunner, executive vice president of the Mississippi Association of REALTORS. Much of the growth in DeSoto County, for example, is due to the expansion of Memphis, he said. In Hattiesburg, retirees make up much of the new growth of the residential market. In Central Mississippi, the Nissan project in Canton is having a huge influence on the real estate market. And the Mississippi Gulf Coast's casinos, nearby Stennis Space Center and 27 miles of sandy beaches have drawn many to that area.
Gray Swoope, president of the Area Development Partnership (ADP) in Hattiesburg, said hot residential real estate markets stem from the combination of good employment opportunities and a nice environment to raise a family.
"You have to have an environment that's conducive to job creation and entrepreneurial leadership, and the other is going to follow," Swoope said.
Several factors contribute to an area's hot residential real estate market, said Gary S. Smith, president of Gary S. Smith Real Estate Inc. Among them: quality controls, incentives for businesses and zoning regulations. Providing the necessary infrastructure for developers is also important, he said.
"You don't get a lot of Nissans coming into the state and you have to rely on smaller businesses and making a favorable climate for smaller businesses to come in," Smith explained.
Another factor that has been helpful to Mississippi towns and cities in drawing new residents is the positive press the state has enjoyed because of Nissan.
"When you have an area where it's perceived that growth is good and new jobs are coming in, and when you get positive press, it puts people in the buying mood," Smith said. "It makes people feel more secure and puts them in more of a buying or upgrading mode."
Rankin County continuing to grow
Tom Troxler, executive director of the Rankin First Economic Development Authority, said the primary components of residential growth in Rankin County come from several different facets. They include low taxes and crime rates, high quality government and the ability of elected officials to keep infrastructure and schools in pace with the county's growth. The citizens of the county have a great sense of community, too, which is an added plus. And, he said, "all the retail development and service industries have made it even easier for people to buy the goods and services that they need and that's also furthered the growth of the county."
City's board of aldermen contributes to Southaven's growth
Southaven Chamber of Commerce executive director Diane Hill said the good location of the city and the progressive Southaven Board of Aldermen have contributed to her city's residential growth. The board's pursuit of good services and parks and recreation has made a wonderful impact on the area, she said.
"Part of our growth is due to our convenience to major freeways and a metropolitan area," Hill said. "But the fact that there's affordable housing and our schools have one of the highest ratings in the state has also drawn new residents to our area."
Brenda Swanger, managing broker with Reeves-Williams Real Estate in Southaven, said many of the people moving into the Southaven area are first-time homebuyers.
"It's just an all around great market," Swanger said, noting the low property taxes of the area as well as homestead exemptions. And, she added, "Southaven is close to everything -- the airport, casinos, downtown Memphis and the interstates. Everywhere I look I'm seeing construction and plans to develop and expand and open up other areas. It just looks like the best place to be right now."
Stable, diverse economy keeping Hattiesburg's residential market attractive
In Hattiesburg, it's the stable diversified economy as well as the influx of retirees that have helped to make that area's residential market what it is today.
"We have many successful businesses and industries, a huge medical community, Camp Shelby, William Carey College and the University of Southern Mississippi, to name a few," said Cheryl Cranford, broker associate with RE/MAX Real Estate Partners Inc. in Hattiesburg. The fact that all of the city's assets are marketed through one organization, the ADP, is an added bonus.
"They all work together to achieve a common goal and that's to promote Hattiesburg," Cranford said. "All in all, our community is working all the time."
Aside from a diversified economy, Hattiesburg and the surrounding area is also close to the Mississippi Gulf Coast, Birmingham and New Orleans.
"We were one of the best kept secrets in the country, as one of my clients from New Jersey put it," Cranford said. "But now the secret's out."
Swoope believes people today are looking at places where they can live and have a good quality of life. "Certainly the Forrest and Lamar County area are two areas that continue to offer that," he said.
Tupelo, Lee County inching up on growth chart
Further north in Tupelo and Lee County, the growth of the residential market is not quite as pronounced as it is in other areas of the state, but Tommy Morgan of Coldwell Banker Tommy Morgan REALTORS said that appearance that has helped the area's growth stay steady.
"I've been here 33 years in real estate and our highs usually aren't that high and our lows really aren't that low," Morgan said. "Right now I'd say we appear to be hot because others are not, but the market is still real good."
During Morgan's long real estate career, there have only been two times he would consider the Tupelo residential real estate market to be hot, and that happened when new employers entered the area.
David Rumbarger, president of the Community Development Foundation of Tupelo/Lee County, said the area has grown a good bit this year. According to the numbers released by the Mississippi Employment Security Commission, the totals for manufacturing employment for Lee County in May 2002 was 18,510, up about 1,330 from last year. The combined total for manufacturing, service and agricultural industries is 57,480, an increase of 3,200 compared to last year. The furniture industry has also rebounded. Many of the area's furniture manufacturers ramped up their production this spring to get ready for the summer and fall seasons.
"Indicators are up and employment is up for Lee County," Rumbarger said. "If this housing increase stays, then the consumer goods market will follow in the next three to six months. If you buy a house you have to buy all the things that go in it."
Mississippi Gulf Coast residential real estate market still on the upswing
On the Mississippi Gulf Coast, real estate agents are still trying to handle a large influx of residents, and Pat Harrington predicts that growth will continue.
"The area has just about doubled in the past 10 years," said Harrington, president of the Biloxi-Ocean Springs Association of REALTORS and the owner of Harrington Realty Inc. "I don't think the growth of the area will be that rapid in the future, but I definitely think it will continue to grow."
David Staehling, director of community development for the City of Biloxi, said Biloxi is currently issuing new permits for residential construction at a record breaking pace.
"The City of Biloxi is safe, affordable, clean and it's fun," Staehling said. "It's' the things you want."
George Freeland, executive director of the Jackson County Economic Development Foundation, believes the residential real estate markets in the area will continue to be active.
"I go back to the investment and the job growth," Freeland said. "I know that's going to occur in Jackson County."
"I think it's time for Mississippi," said Joyce Noone, a REALTOR with Kelly Dabbs Realty Inc. in Jackson. "I think people realize that the South has a lot to offer."
