Atlantic City-Hammonton, New Jersey
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The analysis presented in this report was completed prior to the COVID-19 outbreak in the United States and therefore the forecast estimates do not take into account the economic and housing market impacts of the actions taken to limit contagion of the virus. At this time, the duration and depth of the economic disruption are unclear, as are the extent and effectiveness of countermeasures. HUD will continue to monitor market conditions in the HMA and provide an updated report/addendum in the future. COMPREHENSIVE HOUSING MARKET ANALYSIS Atlantic City-Hammonton, New Jersey U.S. Department of Housing and Urban Development, Office of Policy Development and Research As of January 1, 2020 Share on: Atlantic City-Hammonton, New Jersey Comprehensive Housing Market Analysis as of January 1, 2020 Executive Summary 2 Executive Summary Housing Market Area Description The Atlantic City-Hammonton Housing Market Area (HMA) is coterminous with the Metropolitan Statistical Area (MSA) of the same name. It consists of Atlantic County, along the southern New Jersey Shore, and it is approximately 60 miles southeast of the city of Philadelphia. The HMA is home to nine casinos, including the Hard Rock Hotel and Casino and the Ocean Casino Resort, which both opened during 2018. The current population of the HMA is estimated at 265,200. Tools and Resources Find interim updates for this metropolitan area, and select geographies nationally, at PD&R’s Market-at-a-Glance tool. Additional data for the HMA can be found in this report’s supplemental tables. For information on HUD-supported activity in this area, see the Community Assessment Reporting Tool. Comprehensive Housing Market Analysis Atlantic City-Hammonton, New Jersey U.S. Department of Housing and Urban Development, Office of Policy Development and Research Atlantic City-Hammonton, New Jersey Comprehensive Housing Market Analysis as of January 1, 2020 Executive Summary 3 Market Qualifiers Economy Sales Market Rental Market Weak, but Strengthening: During Soft: The HMA had 9.2 months of Slightly Soft, but Improving: The 2019, nonfarm payrolls averaged available for-sale housing inventory overall rental vacancy rate is 134,500, representing an increase in December 2019 (New Jersey estimated at 8.6 percent, down of 3,300 jobs, or 2.5 percent. Association of Realtors®). from 9.6 percent in April 2010. Since 2018, nonfarm payrolls in the Atlantic The sales market in the HMA is soft, with an The rental housing market in the HMA is currently City-Hammonton HMA have increased by an estimated vacancy rate of 2.9 percent, up from 2.6 slightly soft, but conditions are improving. average of 3,600 jobs, or 2.8 percent, annually. percent in April 2010. During 2019, approximately Conditions in the apartment market, however, By comparison, from 2007 through 2017, nonfarm 5,850 new and existing homes were sold, down by are tight. During the fourth quarter of 2019, payrolls declined or were relatively unchanged 210 home sales, or 4 percent, compared with 2018 the apartment vacancy rate was 2.2 percent, each year, down by an average of 2,400 jobs, or (Metrostudy, A Hanley Wood Company). During the down from 4.2 percent during the same period 1.7 percent, annually. In the leisure and hospitality next 3 years, demand is estimated for 570 new a year earlier, and the average apartment rent sector, nonfarm payrolls increased by an average homes, and the 90 homes under construction will increased 5 percent, to $1,275, during the past of 3,400 jobs, or 9.2 percent, annually during the satisfy a portion of this demand. year (RealPage, Inc.). During the forecast period, past 2 years. This increase was largely due to demand is estimated for 610 new rental units. approximately 8,000 new jobs being created when The 320 units currently under construction will two new casinos opened in Atlantic City during satisfy a portion of this demand. 2018. During the 3-year forecast period, nonfarm payrolls are expected to increase an average of 0.4 percent annually. TABLE OF CONTENTS Economic Conditions 4 3-Year Housing Demand Forecast Population and Households 8 Sales Units Rental Units Total Demand 570 610 Home Sales Market Conditions 10 Atlantic City-Hammonton HMA Under Construction 90 320 Rental Market Conditions 14 Notes: Total demand represents the estimated production necessary to achieve a balanced market at the end of the forecast period. Units under Terminology Definitions and Notes 17 construction as of January 1, 2020. The forecast period is from the current date (January 1, 2020), to January 1, 2023. Source: Estimates by the analyst Comprehensive Housing Market Analysis Atlantic City-Hammonton, New Jersey U.S. Department of Housing and Urban Development, Office of Policy Development and Research Atlantic City-Hammonton, New Jersey Comprehensive Housing Market Analysis as of January 1, 2020 Economic Conditions 4 Economic Conditions Table 1. Major Employers in the Atlantic City-Hammonton HMA Name of Employer Nonfarm Payroll Sector Number of Largest Sector: Leisure and Hospitality Employees Caesars Entertainment Corporation Leisure & Hospitality 8,700 Nonfarm payrolls in the HMA increased during the past 2 years after Borgata Hotel Casino & Spa Leisure & Hospitality 5,925 nonfarm payrolls declined or were relatively unchanged during each Hard Rock International Leisure & Hospitality 3,900 of the previous 11 years. Federal Aviation Administration Government 3,500 AtlantiCare Regional Medical Center Education & Health Services 3,500 Primary Local Economic Factors Ocean Casino Resort Leisure & Hospitality 3,300 The leisure and hospitality, the education and health services, and the Tropicana Atlantic City Leisure & Hospitality 3,150 government sectors are the largest nonfarm payroll sectors in the HMA, DGMB Casino, LLC Leisure & Hospitality 1,950 accounting for 32, 16, and 15 percent of all nonfarm payrolls, respectively Shore Medical Center Education & Health Services 1,600 Stockton University Government 1,600 (Figure 1). Additionally, all 10 of the largest employers in the HMA are in one Note: Excludes local school districts. of these three sectors, led by Caesars Entertainment Corporation with 8,700 Sources: Economy.com; NJBIZ; New Jersey Business Magazine jobs (Table 1). The economy of the HMA is heavily reliant on tourism, with people visiting the area for gambling, concerts, conventions, and other events Figure 1. Share of Nonfarm Payroll Jobs in the throughout the year. During 2018, tourism in the HMA generated nearly $7.39 Atlantic City-Hammonton HMA, by Sector billion in direct sales and supported approximately 51,700 jobs, mostly in the leisure and hospitality sector and the retail trade subsector. Sales and Mining, Logging, & Construction 4% Local 11% employment totals were both up 8 percent compared with 2017 (Tourism Manufacturing 2% Economics). Additionally, during 2018, visits to the HMA totaled 20.61 million, State 3% Wholesale 2% Federal 2% Retail 11% up nearly 15 percent from a year earlier. Other Services 4% Government 15% Trade 13% Transportation & Utilities 2% Economic Sectors of Significance Information 1% Total Financial Activities 3% Leisure and Hospitality 134.5 The HMA is home to nine casinos, and more than 60 percent of all payrolls in the leisure and hospitality sector are in the casino hotels industry. Additionally, Professional & Business Services 8% with more than $2.51 billion in gambling revenue, the HMA is the second largest commercial casino market in the nation behind the Las Vegas Strip Market Leisure & Hospitality 32% (American Gaming Association’s State of the States 2019 report). Education & Health Services 16% Nonfarm payrolls in the leisure and hospitality sector were relatively unchanged from 2001 through 2005, but they declined by an average of 1,900 jobs, or 4.0 Notes: Total nonfarm payroll is in thousands. Percentages may not add to 100 percent due to rounding. Based on 12-month averages through December 2019. percent, annually from 2006 through 2017. All net losses in this sector were Source: U.S. Bureau of Labor Statistics Comprehensive Housing Market Analysis Atlantic City-Hammonton, New Jersey U.S. Department of Housing and Urban Development, Office of Policy Development and Research Atlantic City-Hammonton, New Jersey Comprehensive Housing Market Analysis as of January 1, 2020 Economic Conditions 5 concentrated in the hotel casinos industry, which was down by an average since 2001. From 2001 through 2019, nonfarm payrolls in the sector annually of 1,900 jobs, or 6.3 percent, annually. In addition to a decline in tourism that increased by an average of 300 jobs, or 1.7 percent. Gains during this period resulted from The Great Recession and its aftermath, casinos in the HMA were were partially attributed to an increase in the number of urgent care facilities in negatively impacted by increased competition from new casinos in the major the HMA. In 2018, there were nearly 50 establishments in the outpatient care metropolitan areas from Washington, D.C. to New York City. The stronger centers industry, which was up compared with nearly 20 establishments during competition was especially notable in the Philadelphia-Camden-Wilmington, 2001, while covered payrolls increased by an average of 45, or 8.1 percent, PA-NJ-DE-MD MSA, where three new casinos opened between 2007 and 2010 annually during this period (Quarterly Census of Employment and Wages). and have since expanded. During the 11-year period from 2006 through 2016, the number of casinos in Government Atlantic City declined from 12 to 7. Additionally, Revel Hotel and Casino opened The government sector is also a major part of the economy of the HMA, but in 2012 but closed 2 years later. The first casino to close was Sands Atlantic City, payrolls have declined during the past 5 years. Since 2015, nonfarm payrolls which ceased operations in late 2006, resulting in more than 2,150 jobs lost.