Needles, CA: City of Needles’ Market Brief October 2019.
According to a press release by Needles City Manager Rick Daniels, the California Department of Tax and Fee Administration (formerly known as the Board of Equalization) releases Sales & Use Tax Reports to the City of Needles. While the actual sales of any particular company are considered confidential, the aggregate figures can be made public.
– For 2Q19 (April 1 – June 30, 2019), the last quarter available, retailer in the City of Needles sold $12.82 million of taxable product. This represented a 13.5% growth from the 2Q18. Overall, communities within the County of San Bernardino experienced sales growth of 1.5% quarter over quarter. Needles ranked 2nd (out of 24 cities) in percentage sales increase.
– For 1Q19 (January 1 – March 31, 2019), retailers in the City of Needles sold $10.66 million of taxable product. This represented an 8.2% growth from the 1Q18. Overall, communities within the County of San Bernardino experienced sales growth of 1.8% quarter over quarter. Needles ranked 6th (out of 24 cities) in percentage sales increase.
Regarding industry growth; the of Needles continues to work closely with various cannabis companies under the new laws in California that allow for adult-recreational use.
In the last 24 months, 170,000 square feet of new industrial space has been built housing cannabis-related businesses involved in cultivation, processing and laboratory extraction work. These businesses now generate over 400 direct jobs in the community. It is anticipated over the next nine (9) months, an additional 80,000 square feet and 200 jobs will be generated.
Arrowhead Credit Union recently merged (took over) the operations of Desert Communities Credit Union. Arrowhead is a $1.4 billion asset size institution with over 163,000 members and about 20 branch operations. Arrowhead’s presence in Needles brings additional financial opportunity to residents and businesses for lending and deposit services.
Regarding Housing; new housing permits have been minimal in terms of new housing development. In 2018 there were 6 new SFD Residential Units Built. In 2017 there were 3. The Cannabis industry is generated a new demand for housing. This is evident in certain market statistics as shown below:
– That said, there has been substantial market movement for Needles over the last eighteen (18) months. Some key data points (12-Year Average is 2007-2018):
– Home Sales: 12-Year Average Number of Home Sales (Annual): 46 2018 Total Home Sales: 58 2019 Projected Home Sales (Full Year): 96 (72 Sales through 9/19)
– Median Home Price: 12-Year Average: $69,900 2018: $92,000 2019: $96,750
– Price Per Square Foot (Median Home Size Approximately 1,500 Square Feet): 12-Year Average $51.71 2018: $62.71 2019: $71.41
– There are residential developers actively evaluating the market and there is one (1) developer who has purchased 2.3 acres from the City of Needles itself in the Downtown corridor to construct a mixed-use building that will include approximately 92 apartment units.
“The City of Needles is proud to share a recent research report on the local economy demonstrating that all critical key indicators are up. The businesses in the City are improving, industrial growth is continuing, and the housing market continues to improve,” said City of Needles Mayor Jeff Williams.
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