perimeter growth, and the associated increase in demand for local Wichita, the largest city in Kansas, population 389,938 1 is the coun- government services, is expected to continue for Wichita. ty seat of Sedgwick County. Major highways, including the Kansas Turnpike and Interstate I-135, link the city with a large trade area encompassing a population of more than 1.1 million people within a The racial and ethnic composition of Wichita's population is compa- 100-mile radius.2 The nearest large cities are Denver to the west, rable to the national average. The fastest growing group, both in Kansas City to the northeast, to the south and Tulsa Wichita and nationally, is people of Hispanic origin. to the southeast.

POPULATION BY RACE/ETHNIC ORIGIN, 2019 Wichita's population growth has (PERCENT OF TOTAL) remained steady for the past RACE/ETHNIC U.S. WICHITA three decades. The majority of recent growth has occurred Hispanic Origin* 18.3% 16.5% along the far west/northwest and east/northeast peripheries Not Hispanic 81.7% 83.5% of the city, and into the unincor- TOTAL 100.0% 100.0% porated portions of the county. White 72.0% 74.5% As of May 2021, the city's total land area was approximately 166 Black/African American 12.8% 10.5% square miles.3 The majority of annexation over the past couple of years has been in response to a need for improved utility service in American Indian 0.9% 1.0% the annexed areas, especially water service. Asian 5.7% 5.0% Other** 8.6% 9.0% The metropolitan statistical area (MSA) includes Butler, Harvey, Kingman, Sedgwick and Sumner counties.4 The MSA has a popula- TOTAL 100.0% 100.0% tion of 640,218.2 Sedgwick County represents 80.6 percent of the area's population, with an estimated 516,042 residents in 2019.2 * May be of any race, consequently percentages will add to more than 100%. ** Includes other races and persons identifying themselves as multi-racial.

Source: U.S. Census Bureau, 2019 American Community Survey 1-Year The city's population density decreased by nearly 50 percent in the Estimates. past few decades. Today, there are approximately 2,349 persons per square mile in Wichita compared to 4,625 per square mile in 1960, when growth within the city limits peaked. The trend of WICHITA METROPOLITAN STATISTICAL AREA POPULATION DISTRIBUTION BY COUNTY, 2019 POPULATION TRENDS, 1950-2010

SEDGWICK PER- WICHITA PERCENT YEAR COUNTY CENT (IN 1,000'S) CHANGE ( IN 1,000S) CHANGE 1950 168.3 222.3 1960 254.7 51.3% 343.2 54.4% 1970 276.6 8.6% 350.7 2.2% 1980 279.3 1.0% 367.1 4.7% 1990 304.0 8.8% 403.7 10.0% 2000 344.3 13.3% 452.9 12.2% 2010 382.4 11.1% 498.4 10.0%

Source: U.S. Bureau of the Census, Population of the 100 Largest Cities and Other Urban Places in the United States: 1790 to 1990, Working Population Paper No. 27, 2000 and 2010 population counts from the respective decennial censuses.

2022-2023 Proposed Budget 43 Wichita, Kansas nutritional medicine and preventive care. Several medical research Wichita is located on the organizations provide clinical research services for the pharma- central plains far from any ceutical, nutritional and medical device industries. large moderating influences,

such as mountains, oceans, or lakes. There is a wide range of temperatures, which According to FBI data, the fall between a humid sub- number of violent crimes tropical climate and a humid committed in Wichita decreased continental climate with hot, humid summers and somewhat cold, 13.8 percent from the first half of dry winters. 2018 to the first half of 2019. 5

Despite these extremes, Wichita is known to have more sunny days Over the years, the Wichita Police Department received national throughout the year than Miami. Over the course of a year, recognition and was the recipient of several awards. The Webber temperatures range from an average low of about 20° F (−7° C) in Seavey, an international award for quality law enforcement, was January to an average high of nearly 93° F (34° C) in July. The presented to the Wichita Police Department in 1996 and 2003. maximum temperature reaches 90° F (32° C) an average of 64 days per year and reaches 100° F (38° C) an average of 14 days per year. Conversely, the minimum temperature falls below 0° F Wichita Eisenhower National Airport, the largest airport in Kansas, (−17.8° C) an average of 3.6 nights per year. The first fall freeze is a combination commercial air carrier and general aviation typically occurs between the second week of October and mid- complex, providing accommodations for all aircraft. Passenger November, and the last spring freeze occurs between the end of service is offered through the following airlines: Alaska Airlines, March and the final week of April. Allegiant Air, American Airlines, Delta Airlines, Frontier Airlines, Southwest Airlines, and United Airlines to 13 nonstop destinations around the U.S. Cargo service is provided by four major carriers: Wichita’s population has achieved relatively high levels of DHL, Federal Express, UPS Supply Chain Solutions, and UPS. education. In 2019, 89 percent of Wichita’s citizens aged 25 years and older had at least a high school diploma, 0.4 percent higher The airport replaced its main terminal with a new $160 million facility than the national average. which opened on June 3, 2015. The two-story, 273,000 square-foot terminal is a state-of-the-art amenity capable of accommodating two The city of Wichita is served by eight unified school districts. The million passengers annually. Wichita Public School District (USD 259) is the largest in the city. In fall 2020, Wichita USD 259’s enrollment was 46,987 students, a 4.8 After rapid growth in recent years, Eisenhower’s total passengers percent decline compared to 2019 as the novel coronavirus reduced contracted 55.1 percent in 2020 to 785,000 passengers as the novel school enrollments throughout the country. The largest enrollment coronavirus pandemic limited air travel. Air freight shipments declines were in the elementary grades, while middle school and declined 1.3 percent in 2020 to 56.8 million pounds (inbound and high school enrollment remained relatively flat for the district. outbound).

In addition to the public school districts, there are numerous private, public, and technical schools, including 12 colleges and universities providing educational opportunities in many fields of study. Among Recreational opportunities abound in Wichita. The city's compact these are Wichita State University, Newman University, University size allows minimal travel time (average 30 minutes) to outlying of Kansas School of Medicine and Friends University. areas with open prairie and lakes. Inside the city there are 126 municipal parks covering more than 5,000 acres. 6

Wichita is a regional leader in health care with over 1,600 licensed Cultural activities include art, natural and historical museums, beds at 11 acute care and freestanding specialty hospitals. In theater, the Mid-America All-Indian Center, the Wichita Symphony, addition to these major treatment facilities, there are approximately the Wichita Grand Opera, the Metropolitan Ballet, the Lake Afton 70 nursing homes and assisted living facilities with more than 4,500 Public Observatory, Botanica Wichita, and the Sedgwick County beds. Wichita is also home to the Riordan Clinic, an international Zoo. biomedical research and educational organization, specializing in

2022-2023 Proposed Budget 44 Wichita, Kansas Exploration Place, the Downtown Wichita’s residential offerings have continued to expand Sedgwick County science in recent years, with almost 1,228 residential units added between and discovery center, 2010 and 2019 in the form of newly constructed apartment buildings promotes an interest in and repurposed commercial buildings. New units continue to be science for all ages through added, the largest of which is a $40 million, 200-unit apartment its permanent and traveling complex which began construction in October of 2019 as part of the exhibits, summer camps, Delano catalyst project. Maker Faire Wichita, and the Wichita Regional Science and Engineering Fair. The Wichita Art Museum’s WSU Current Conditions Index permanent collection includes over 8,000 objects, with a focus on The average annual WSU Current Conditions Index declined 5.9 American and Great Plains art. index points to 92.2 points in 2020 as the novel coronavirus pandemic sharply reduced economic output in the second quarter. Wichita is home to many festivals, sporting events, and holiday This followed the index reaching its highest level in 2019 since celebrations, the largest of which is the nine-day Riverfest in June. 2008. The index recovered throughout 2020 and into 2021, growing This event began as a city-financed centennial celebration in 1970. to 93.3 index points by March as the economy recovered. An In 2019, Riverfest’s attendance reached 440,000, and the event employment decline of 6.1 percent and the unemployment rate was canceled in 2020 due to the pandemic. Since 2013, both more than doubling from 3.4 to 8.3 percentage points in 2020 were attendance and sponsorships for Riverfest have grown by more the main causes of the decline in the index. than 50 percent.

Minor league baseball, basketball, hockey, soccer and indoor The WSU Leading Economic Indicators Index is designed to football are some of the professional sporting attractions available in foreshadow the Wichita economy approximately six months into the the Wichita area. Wichita is also the host of the annual National future. In 2020, the annual average indexed value decreased 8.1 Baseball Congress World Series tournament. In 2018, Wichita percent relative to its 2019 value to 90 index points after the novel hosted first and second round NCAA men’s basketball tournament coronavirus pandemic reduced the economic outlook for both the games. The city will host the men’s first and second round games Wichita and national economies in 2020 and 2021. The index again in 2025 and will host the women’s first and second round increased to 95.7 points in March 2021, a sign that the economy games in 2022. Construction was completed on a new $80 million should continue to improve throughout 2021. baseball stadium, Riverfront Stadium, in March 2020. The , a Double-A team formerly All of the factors in the index declined in 2020. The Aircraft known as the Baby Cakes, will mark their inaugural Production Index had the largest drop with a contraction of 23.1 season in Wichita in the new ballpark in 2021. percent due to the novel coronavirus pandemic’s outsized impact on the air travel and aircraft manufacturing industries. Built in 1969, Century II is the performing arts and convention headquarters downtown. The INTRUST Bank Arena is Wichita’s largest sports and entertainment venue, with an over 15,000 seat Wichita's employment includes a broad mix of business types, with capacity. The arena ranked as the 123th busiest worldwide in a sizable base of relatively high paying manufacturing jobs. A list of Pollstar’s 2019 Year-End Arena Rankings. Wichita's major private employers includes Spirit AeroSystems Inc., Via Christi Health, Textron Inc., Bombardier Learjet, Koch Industries Inc., Wesley Medical Center, Dillons Food Stores, Cargill Meat Downtown Wichita serves as the Solutions, Johnson Controls and Cox Communications. region's commercial, entertainment, artistic, cultural and government Beyond these major private employers, Wichita’s numerous small center. The central business district and mid-sized companies supply a wide variety of goods and has 4.7 million square feet of services both to local and global markets. According to the 2019 rentable office space, which County Business Patterns, the total number of business accounts for 39 percent of all establishments grew 0.2 percent in the metropolitan area in 2019, to rentable office space in Wichita.7 14,928 establishments. Approximately 97.1 percent of all business establishments in the metropolitan area employed fewer than 100 Old Town, located in the heart of the city, is known for its brick-lined workers. streets, historic lamp posts and converted warehouses. The late 19th century and early 20th century buildings house more than 100 Total wage and salary employment data in the Wichita metro area restaurants, shops, clubs, theaters, museums and businesses. contracted 6.1 percent in 2020, a decline of 18,600 jobs, with almost

2022-2023 Proposed Budget 45 Wichita, Kansas every sector losing jobs due to the effects of the pandemic. The goods-producing sector lost 8,500 jobs, while the service sectors Even with all of these amenities, Wichita continues to maintain a lost 6,500 jobs. moderate cost-of-living rate of 89.2, almost 10 percent lower than the average among 269 urban areas in the United States and lower than 70 percent of U.S. urban areas.8 According to the National TOTAL EMPLOYMENT GROWTH RATE Association of Realtors, The 2019 fourth quarter median sales price of existing single-family homes in the Wichita MSA was $175,000 6.0% compared to the national median price of $299,900. Wichita’s home 4.0% prices ranked the 37th least expensive among metro areas in the 2.0% U.S., more than 40 percent less than the national median. The average sale price of a newly built, single-family home in 2020 in 0.0% the Wichita metro area was $254,831, considerably lower than the -2.0% national average price of $370,902.9 -4.0% -6.0% The Wichita MSA’s total nominal personal income increased 3.9 -8.0% percent in 2019 after increasing 3.5 percent in 2018. In 2020, personal income growth is projected to be at 5.9 percent before 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 adjusting for inflation, and in 2021, personal income is forecast to Actual Forecasted grow 6.6 percent.

Source: Bureau of Labor Statistics. Compilation and forecast by the Cen- TOTAL PERSONAL INCOME GROWTH RATE ter for Economic Development and Business Research, W. Frank Barton School of Business, Wichita State University. 8.0% The industries with employment declines were manufacturing (8,400 7.0% jobs), wholesale trade (500 jobs), retail trade (1,200 jobs), 6.0% transportation and utilities (600 jobs), information (300 jobs), 5.0% professional and business services (1,700 jobs), leisure and 4.0% hospitality (4,400 jobs), other services (300 jobs), and government 3.0% (1,200 jobs). 2.0% 1.0% In 2020, the largest employment sectors were education and health 0.0% services (16.3 percent), manufacturing (16.1 percent), government -1.0% (14.2 percent), and professional and business services (11.8 -2.0% percent). Overall, private sector services comprised 47 percent of Wichita employment, while the goods producing sectors comprised 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 22.1 percent and the trade and transportation sectors comprised Forecasted Actual 16.8 percent. Source: U.S. Dept. of Commerce, BEA. Forecast by the Center for Though the local economy grew rapidly in 2018 and 2019, Economic Development and Business Research, W. Frank Barton employment declined sharply in the second quarter of 2020 with the School of Business, Wichita State University. outbreak of the novel coronavirus pandemic, followed by the beginning of the employment recovery in the third and fourth In 2019 (latest data available as of this printing), the Wichita MSA quarters of the year. had a total personal income (TPI) of $33.4 billion. This TPI ranked 88th largest among 384 metro areas in the United States. From In 2021, annual average employment is projected to grow 0.6 2009 to 2019, the average annual growth rate of TPI for the Wichita percent in the Wichita area, adding more than 1,600 jobs. This MSA was 3.2 percent, modestly lower than the national 4.4 percent measure under-represents the strength of Wichita’s 2021 recovery, growth rate, due in large part to the slower population growth in the however, as growth is expected to accelerate throughout the year Wichita area. because 2020 average annual employment includes a mix of pre- and post-pandemic employment levels. In 2019, Wichita had a per capita personal income (PCPI) of Unemployment rate declines are expected to continue throughout $52,129. This PCPI ranked 113th highest among 384 metro areas in 2021 as social distancing restrictions are lifted, extended the United States and was modestly below the national average, unemployment benefits expire, and more workers are able to return $56,468. Wichita’s 2009-2019 average annual growth rate of PCPI to employment. was 2.8 percent, which was 0.9 percent lower than the national

2022-2023 Proposed Budget 46 Wichita, Kansas PCPI growth rate, largely due to declines in Wichita’s per PCPI from 2009 to 2010. Between 2019 and 2025, total personal income is The service sectors decreased 4.7 percent in 2020, a contraction of forecast to grow at an average annual rate of 3.8 percent. 6,600 jobs:

 The information sector contracted by 300 jobs, a decline of 7.7 Manufacturing accounted for 16.1 percent of total nonfarm percent. employment in the Wichita MSA in 2020. About 83.4 percent of  Financial activities employment remained flat with no growth. manufacturing jobs are in the durable goods sub-sector, primarily in  The professional and business services sector decreased by aviation manufacturing, along with a sizable machinery 1,700 jobs, a contraction of 4.8 percent. manufacturing subsector. About 16.4 percent of manufacturing jobs  The education and health care services sector was the only are in the non-durable goods sub-sector, dominated by jobs in food service sector to grow in 2020, adding 100 jobs for 0.2 percent processing and printing. growth.  The leisure and hospitality sector lost 4,400 jobs for a decline of The durable goods sector grew sharply in 2018 and 2019, adding 13.3 percent. 4,600 new jobs in the two-year period as aerospace manufacturing  The other services sector contracted by 3.5 percent, declining by companies began to increase production to meet high demand. 300 jobs. Spirit Aerosystems, Wichita’s largest private employer, added more than 2,400 jobs in 2018 and 2019, and Textron Aviation, Wichita’s Prior to the novel coronavirus pandemic, local service sector growth second largest manufacturer, announced plans in May 2019 to hire had been broad-based, with the largest growth in the professional 1,000 new workers. and business services, health care, and leisure and hospitality service sectors. The service sector was Wichita’s most consistent Late 2019 and 2020 presented new challenges for Wichita’s source of employment growth, with manufacturers, especially in the aviation market. Boeing froze gains outpacing total local production on its 737 Max airliner in December 2019 after the employment growth in nine of the grounding of all 737 Max planes in March 2019. This had past ten years. From 2010 to reverberations throughout the aerospace supply chain that were felt 2019, service sector growth has by Spirit, which supplies the fuselage for the 737 and other parts, expanded by more than 13,000 and Wichita’s smaller aerospace suppliers. workers, accounting for more than 67 percent of all local job growth. Compounding these issues, the novel coronavirus pandemic led to manufacturing pauses and significantly reduced demand in the In 2020, almost every service sector in Wichita experienced a commercial aerospace market due to a plummet in air travel contraction in employment, as some sectors were directly affected demand. Nationally, the number of air traffic passengers declined by social distancing measures and others had more indirect effects 5 61 percent in 2020 relative to 2019. Though Wichita’s due to the contraction of the manufacturing sector and general manufacturing sector has diversified over the last decade, the reduction of economic activity. These sectors were hardest hit in area’s heavy focus in the aerospace sector led to a larger decline the second quarter of 2020, and most began to recover some of locally in manufacturing than nationally during the pandemic. their lost employment in the third and fourth quarters of the year. For 2021, the annual average employment in Wichita’s service With these headwinds, annual average employment in Wichita’s sectors is projected to grow 2.3 percent, and employment in the manufacturing sector declined 15.3 percent in 2020, from 54,900 to fourth quarter of 2021 is forecast to be 3.2 percent higher than the 46,500 workers, with the largest decline in the aerospace sector. fourth quarter of 2020. Spirit announced multiple rounds of layoffs throughout 2020, laying off almost 5,000 workers throughout the year, and this led to other The leisure and hospitality sector was the single hardest hit service local suppliers decreasing their employment due to lower demand. sector in Wichita by the novel coronavirus pandemic, contracting 13.3 percent with the loss of 4,400 jobs in 2020. Prior to 2020, the The industry began recovering from these losses in the third quarter sector had been Wichita’s fastest-growing, with employment of 2020 as Boeing resumed production of the 737 Max, though at a expanding 20.8 percent from 2011 to 2019. In 2021, reductions in substantially reduced level compared to 2019 production. Wichita’s social distancing and the resumption of full capacity dining in manufacturing sector is projected to grow each quarter in 2021. restaurants is expected to propel the leisure and hospitality sector to Due to the first quarter of 2020 being prior to the pandemic, average Wichita’s fastest growth, an expansion of 5.6 percent. annual employment is forecast to decline 3.7 percent compared to 2020. However, fourth quarter 2021 employment in the sector is The other services sector suffered the second-largest contraction of projected to be 2.6 percent higher than the fourth quarter of 2020, Wichita’s service sectors in 2020, a decline of 11.4 percent. The adding back more than 1,100 of the jobs lost in 2020, with 88 sector experienced an outsized effect from the novel coronavirus percent of the growth in the durable goods sector.

2022-2023 Proposed Budget 47 Wichita, Kansas pandemic due to so many of its establishments requiring close Sources: contact with customers, such as barber shops, salons and other This report was prepared by the Center for Economic Development personal care services. From 2014 to 2019, the sector had steadily and Business Research at Wichita State University at the request of grown, adding 1,100 jobs to expand 11.7 percent. The sector is the City of Wichita Department of Finance. projected to grow 2.9 percent in 2021, adding almost 300 jobs. 1. 2019 Census Population Estimates.

The education and health care services sector is Wichita’s single 2. 2019 Population Estimates and 2018 American Community largest sector, with 46,900 workers in 2020. The sector had a very Survey. The Wichita MSA is comprised of Butler, Harvey, positive 2019, adding 1,800 workers, and led Wichita’s service Kingman, Sedgwick and Sumner counties. This metropolitan sectors in 2020 with growth of 0.2 percent. In 2020 most new statistical area delineation was issued by The Office of projects were put on hold, but in 2019, a $62 million renovation of Management and Budget in February 2013. Population the Via Christi Health’s St. Joseph campus was completed. Wichita represents only the Kansas portion of the 100-mile radius, not State University, the largest local university, continued its Innovation the Oklahoma portion. Wichita-Sedgwick County Metropolitan Campus initiative with the completion of a new on-campus YMCA, a Area Planning Department. new residence hall, Student-Athlete Success Center, and the NIAR 3. Wichita-Sedgwick County Metropolitan Area Planning Advanced Virtual Engineering and Testing Labs in 2019 and 2020. Department. A new $60 million building for the business school, Woolsey Hall, is expected to be completed in mid-2022. 4. Kingman County was removed from the Wichita MSA in the September 2018 OMB Bulletin, which was reflected in the Growth in 2020 was concentrated in health care’s non-hospital updated 2019 Population Estimates. sector, while hospital employment declined by 200 workers, as did 5. 2019 FBI Semiannual Uniform Crime Report . education employment. For 2021, the overall sector is projected to grow by 0.8 percent, adding more than 300 workers. 6. City of Wichita Park and Recreation Administration. 7. J.P. Weigand & Sons, Inc., Forecast 2021. The professional and business services sector is projected to increase by 600 workers, an expansion of 1.9 percent. The 8. C2ER, ACCRA Cost of Living Index, 2020 Annual Average employment services subsector and the administration and support 9. C2ER, ACCRA Cost of Living Index, 2019 Annual Average. subsector are expected to experience the bulk of this growth, as 10. Transportation Security Administration. “TSA checkpoint travel they were the sectors most disrupted by the novel coronavirus numbers,” https://www.tsa.gov/coronavirus/passenger- pandemic. throughput

11. Longhofer, Stanley D. 2020 Kansas Housing Markets Natural resources, mining and construction employment comprised Forecast, Center for Real Estate, W. Frank Barton School of 26.7 percent of all good-producing industry employment in Wichita Business, Wichita State University, http:// in 2019. The industry’s employment remained flat in 2020 after realestate.wichita.edu/data-research/housing-markets- adding 300 jobs in each of the previous two years. In 2021, the forecast/2019-forecast/wichita/ sector’s employment is projected to grow by 0.8 percent as construction activity is expected to remain robust throughout the year.

The residential market built on solid growth in 2019 with even faster growth in 2020 as housing demand spiked during the social distancing of the novel coronavirus pandemic. Home sales increased 4.2 percent, new home construction grew 7.9 percent in 2019, and growth increased to 6.2 for existing home sales and 13.1 percent for new home construction. Stan Longhofer, director of the Wichita State University Center for Real Estate, has forecasted that 2021 construction may decline modestly from its 2020 peak but it is expected to remain 5 percent above 2019 levels.11

2022-2023 Proposed Budget 48 Wichita, Kansas Map of Wichita The following maps provide insight into the past and future of the boundaries of the City of Wichita. The Wichita City Limit: Growth by Decade map illustrates decades of fast growth, such as the 1910s, 1950s, and 1960s, with periods of relatively slower expansion in the 1920s, 1970s, and first half of the 2010s.

2022-2023 Proposed Budget 49 Wichita, Kansas Map of Wichita “The 2035 Urban Growth Areas Map” looks into the future of growth in Sedgwick County.

2022-2023 Proposed Budget 50 Wichita, Kansas