A soft, yet inevitable tempering awaits Orange County in 2006.
After three years of healthy growth, projections are for slower going next year.
That said, the county stands to be one of the strongest economies in the state, even the nation, in 2006.
It’s just that gains are getting harder to come by.
Growth in employment, personal income and retail sales are expected to ease next year. Construction is seen declining. Exports are one of the few areas predicted to beat 2005’s growth rate.
The office market outlook also is bright, save rising construction costs.
Housing is the big question. Forgive us for sounding like a broken record, but 2006 could be the year local housing prices decline. Not everyone’s so sure,some see another year of gains.
It will be interesting to see how a housing shift plays out in the newest segment of the market: condominium high-rises. Towers on the drawing board could see delays if demand falls.
We look at the housing market and other parts of the economy in our annual forecast issue. It starts with what to expect for technology below and continues throughout the paper.
,Michael Lyster
