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Consumer stress and a need for additional housing and childcare focus of local economic outlook

Dr. Paul Isely, Associate Dean in the Seidman College of Business at Grand Valley State University.
Amanda Pitts
/
GVSU University Communications
Dr. Paul Isely, Associate Dean in the Seidman College of Business at Grand Valley State University.

The Grand Rapids Chamber of Commerce hosted the Kent County/Grand Rapids 2024 economic forecast this week.

Employment is expected to slow a touch from 1.8% last year to 1.5% this year. The data indicates employment growth is constrained holding back area company expansion.

“Wage growth we expect to be just below 4% and that’s still pretty strong compared to what we expect inflation for the year to be.”

Economist Dr. Paul Isely presented the data and considers the upcoming year will be “pretty decent” as he puts it.

However, the associate dean in the Seidman College of Business at Grand Valley State University has some “big picture” concerns.

“Number one, the consumer is becoming more stressed, particularly the young consumer.”

As pandemic era savings are used up, Isely says they’re turning to more debt driven consumption. That could lead to a slowdown.

He points out Grand Rapids has more young, 30somethings compared to other places in the country, and still growing. That’s good for future growth, but for now, adds to the area’s housing dilemma.

“So, it really puts some pressure on construction. It really puts some pressure on housing prices and those aren’t going to let up much as the year goes along.”

More housing and childcare are necessary for growth.

“If we made childcare more available, there’s an easy 1% increase in our growth that could happen just from the people who would break loose and be able to work just because of childcare.”

Patrick joined WGVU Public Media in December, 2008 after eight years of investigative reporting at Grand Rapids' WOOD-TV8 and three years at WYTV News Channel 33 in Youngstown, Ohio. As News and Public Affairs Director, Patrick manages our daily radio news operation and public interest television programming. An award-winning reporter, Patrick has won multiple Michigan Associated Press Best Reporter/Anchor awards and is a three-time Academy of Television Arts & Sciences EMMY Award winner with 14 nominations.