Lubbock’s Economy Continues to Show Growth: Especially in New Construction
Tuesday, Lubbock National Bank released November 2013 statistics for the Lubbock Economic Index and Consumer Price Index.
The Lubbock Economic Index increased by eight tenths of a percent to 139.0 in November from 138.2 in October. The November index of 139.0 is 6% up from November 2012. It is also the 22nd straight month the Lubbock Economic Index has grown. For comparison's sake, the Lubbock Economic Index was 132.5 in September 2008 and 100 in January 1996.
LNB's report states general spending and employment have registered solid improvement along with "sharp year-to-year increases" in constriction and home building. New and used automobile spending were down by 6.8% in November 2013 compared to November 2012.
In November 2013, the valuation of building permits issued by the City of Lubbock was up 50% compared to November 2012 and compared to November 2011 the valuations were up by 136%. The $57.8 million permit total for November 2013 is the largest November on record, surpassing the $49.7 million in building permits issued in November 2006. LNB's report also states that for year-to-date, permit valuations are up 5% for January-November 2013 compared to the same eleven months in 2012.
KFYO News' Matt Crow asked James Arnold, president of Lubbock National Bank, if Lubbock could see a housing bubble. "Lubbock avoided a housing bubble last time," Arnold said. "There really wasn't a dip in value; absorption rates are doing okay. One thing that would mitigate that would be the 21 percent in terms of number of homes sold. So, there's volume to match the increase in supply." Arnold also went on to say that home values are holding their own.
Also compiled for the monthly report, Lubbock's Consumer Price Index. In November, Lubbock's Consumer Price Index was 2.3%, down slightly from the 2.4% in October.