Mass Leads in Unemployment but Potential for Recovery Strong

Over the past few months, Boston, Massachusetts, and the rest of the nation have endured bad news of historical proportions. However, some good news is starting to emerge. Let’s get right into it. 

Mass. Unemployment Rate Tied for 4th-Highest in US 

Bad news first. We realize that we’ve discussed the unemployment issue quite a bit in recent weeks, however, it continues to plague - if you’ll excuse the expression - the state of Massachusetts, in particular. 

According to federal data, Massachusetts has the 4th highest unemployment rate in the country. Employers added 58,000 jobs in May, doubling any previous month-over-month record dating back to 1990, and setting new records the second month in a row at 16.3 percent unemployment. However, the state is still just one-tenth of the way from gaining back the staggering 646,700 positions lost in April.

According to a report by NBC Boston, April's original estimate of 15.1 percent was the highest in the state since 1976. However, that number was revised up to 16.2 percent. 

According to the report, thirty-eight states saw lower unemployment rates in May than in April. Only three states reported higher unemployment rates than Massachusetts in May. Rhode Island and California are tied with Mass. with 16.3 percent unemployment. 

As we reported last week, the national unemployment rate dropped from 14.7 percent in April to 13.3 percent in May. According to federal data, Job gains last month were led by the construction industry as well as, hospitality and leisure, and health and education.

Boston & Worcester Near Top of List of U.S. Cities with Fastest Rebounds 

And now for some good news. According to analysis from Bloomberg, Worcester and Boston are on course for strong economic rebounds along with Washington D.C., Seattle, and San Francisco. 

Massachusetts’ two largest cities made the top 10 list with San Jose and San Francisco in the number one and number two spots. Boston ranked third and Worcester eighth — higher than New York City, Miami, and Denver.

Bloomberg attributed the good news to the state’s “foundation of education and a strong health care center,” with about 40 colleges and universities and more than 20 hospitals, “along with many of the world’s leading biotech companies.”

Norfolk County Reports Real Estate Market Remains Viable

Norfolk County Register of Deeds William P. O’Donnell says the county’s real estate market remains viable during the crisis. Other counties in Eastern Mass. are likely in similar condition.

From March 10 through June 12, the Norfolk County Registry of Deeds recorded a 13 percent increase in land documents year-over-year. Residential and commercial sales increased 12 percent to $819,725. 

Although real estate sales dropped by 15 percent, mortgages increased 69 percent. 

“The decrease in the number of real estate sales is not surprising considering the ongoing pandemic and its economic impact. Also, real estate brokers and agents have been unable to hold open houses. The spike in mortgage activity is explained by consumers taking advantage of low interest rates to refinance existing mortgages. Based on the words of Federal Reserve Chairman Jerome Powell, interest rates will not be rising anytime soon.”

Only 29 foreclosure deeds were recorded from March 10 through June 12. 

Read more at Wicked Local

STAG Announces Groundbreaking on Four New Solar Rooftop Systems

STAG Industrial, Inc. has broken ground on four new solar rooftop projects in Massachusetts. Black Bear Energy is facilitating the project and Nautilus Solar Energy, LLC is developing the systems as part of the Solar Massachusetts Renewable Program (SMART).

The four systems in Mass. and one in New Jersey are expected to produce over 10 million kWh of electricity annually — enough to power nearly 1,000 homes.

Nationwide solar projects by STAG now produce over 10 MW of solar. As of March 31, 2020, STAG’s portfolio consisted of 456 buildings in 38 states.

Read all about it in the Boston Real Estate Times.

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