The Economic Development Commission reviewed the 2021 Economic Indicator Report at its meeting on March 10. Most categories show steady growth with some numbers even surpassing pre-pandemic levels.
“Recovery from the pandemic has been stronger than expected,” said EDC Director Tommy Jenkins.
Employment
The year closed with Macon County’s unemployment rate at 2.5% in December 2021, compared to the state rate of 3.7% and the national rate of 3.9%. The county rate was an improvement over December 2020’s unemployment rate of 5.4%. Prior to the pandemic, the county’s December 2019 unemployment rate was 3.1%.
The county’s labor force stood at 15,901 people in December 2021, a decline from 16,069 in November 2021. In December there were 15,506 employed and in November there were 15,638 people working with an unemployment rate of 3%. The labor force held steady compared to December 2020 with 15,901 people and showed an increase from 15,693 in December 2019. Looking at pre-pandemic numbers, there were 15,203 people employed in December 2019 compared to 15,506 in December 2021.
Housing
For anyone buying or selling a house in the past year, it’s no surprise that the average selling price increased over the past three years.
According to the Carolina Smokies Multiple Listing Service, which includes Franklin, the average selling price in 2019 was $186,538 compared to $267,220 in 2021. There were 832 transactions in 2021 totaling $222,327,363.
In the Highlands Cashiers area, the average home price increased from $584,742 in 2019 to $874,829. There were 385 transactions in 2021, compared to 270 in 2019, but a slight decline from the 433 transactions in 2020.
Jenkins said during the pandemic many people wanted to get away from the bigger cities and busy lifestyles and looked to places like Franklin for vacation homes or permanent residences. He says the county’s natural surroundings are a draw for many people.
“Macon County is an area that is going to continue to be in demand,” Jenkins said. But that the continued growth and escalating prices also make it difficult for the less affluent populations. “The rise in home prices has been hard for workforce housing and to meet that demand,” he said.
Building permits
Even with the rising cost of building materials, the number of permits for residential new builds increased in the county from 129 permits issued in 2020 to 147 in 2021. Many people took on home improvement projects during the pandemic lockdowns; the county issued 343 permits for residential alterations in 2020 and 340 in 2020.
Retail Sales
Retail sales have increased steadily as well, increasing from $556,469,301 in 2019 to $723,867,297 in 2021. In the first six months of the 2021-2002 fiscal year, the county has already recorded $451,127,604 in retail sales. November 2021 saw a record of $81,603,170 in sales, the highest of any month in the last three years. Sales have exceeded $70 million every month during the current fiscal year.
Lodging
More people are vacationing in Macon County as well. The Tourism Development Commission saw substantial increases in lodging tax collection in Franklin, Highlands and Nantahala. Highlands revenues from the lodging tax totaled $1,465,539.19 in 2021 compared to $995,419.35 in 2020 and $769,225.17 in 2019. Lodging tax collections in Nantahala totaled $197,262.07 in 2021, up from $153,685.19 in 2020 and $66,527.59 in 2019.
Collections in Franklin totaled $476,111.51 in 2021, $302,678.39 in 2020 and $226,428.51 in 2019.
The Town of Franklin collects a 3% tax at lodging businesses within the town with that money being managed by the Franklin Tourism Development Authority. The TDA saw record-high collections several months in 2021 and are continuing at the same pace this year. Collections totaled $163,651.02 in 2021, up from $98,406.90 in 2020 and surpassed the pre-pandemic collections of $143,620.06 in 2019.
Jenkins said it can be difficult to predict what the remainder of the year will bring. “There are always ebbs and flows in growth,” he said, noting that rising gases prices and inflation continue to be a concern.
The next Economic Development Commission meeting will be May 12 at 5:30 p.m. in Highlands.