Sacramento has long had state government and the military as economic drivers, but even so the recession from the recovery was slow. Now the economy is speeding ahead, but can the city maintain the momentum?
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Petrovich Development Co. President and CEO Paul Petrovich said he is optimistic about the local economy precisely because it has not become overheated in recent years.
"We've experienced a slow recovery and, consequently, homebuilders who have ignored Sacramento and are now skittish over the bubble in the Bay Area, they see Sacramento as a safer place to invest," he said.
"With Sacramento no longer anchored by military bases and an expanding government, homebuilding is now one of our key sources of employment. More homebuilding will also drive the need for retail services."
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Petrovich said he is also optimistic about the wider economy over the next two to five years due to upward pressure on wages.
"With this long-overdue pressure, it shows true unemployment is decreasing and people will be able to buy more homes, goods and services," he said.
Buzz Oates Chairman Phil Oates cited a specific driver of growth in Sacramento as a reason for optimism about the market.
“The momentum stimulated by the Golden 1 Arena will continue to spread throughout the Sacramento area," he said.
"It changes our image. We are now viewed as a viable option for businesses and a great place to live.”
Petrovich and Oates will both be speakers at our first Sacramento State of the Market on Sept. 27 at the Sheraton Grand Hotel.
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