#United States #Modesto #Economic Growth #Inland West #Graceada Partners

The Growing Economy of the Inland West

In a groundbreaking study, Graceada Partners has shed light on the economic performance of the Inland West, revealing its impressive growth trajectory. The report, titled "Equal Footing: The Inland West and the Southeast," measures the Inland West as a singular economy. Spanning the area from the 100th meridian to the coastal ranges, this region comprises around 47 million residents and showcases ten of the country's fastest-growing metropolitan areas such as Phoenix, Denver, and Las Vegas.

An Economic Overview

The Inland West's economy, despite being divided across multiple states, exhibits characteristics of a unified entity. This research identifies that conventional metrics often obscure its true economic size and strength, as cities like Fresno and Indianapolis are averaged into coastal metropolitan statistical areas. Such fragmentation diminishes the view of how these regions collectively contribute to national growth, limiting investment focus and recognition.

This research paper contrasts the Inland West's performance against the rapidly growing Southeast over a 21-year period, from 2003 to 2024. The findings are compelling, with the Inland West matching or even leading key metrics like population growth, income levels, output, and employment rates.

Key Findings

One of the most striking revelations from the report is the crossover of per-capita income between the Inland West and the Southeast relative to the national average. In 2003, the Southeast was closer to the U.S. average at 92.6%, whereas the Inland West was at only 88.8%. Fast forward to 2024, and the situation has reversed. The Inland West has surged upwards while the Southeast's relative standing has declined. This shift highlights a robust upward trajectory for the Inland West over recent decades.

From 2003 through to 2024, the Inland West generated approximately 5.4 million jobs, compared to the Southeast's 4.4 million, despite having 1.6 million fewer residents to draw from. For the past five years, the Inland West has outpaced the Southeast in terms of real output growth and has consistently led in population expansion.

Ryan Swehla, President and co-founder of Graceada Partners, emphasized the importance of recognizing this sizable economy: "A 47-million-person economy growing faster than the consensus region shouldn't be invisible to institutional capital. It's been overlooked not because the fundamentals are weak, but because no one had measured it whole."

Implications for Investment

With its impressive growth rates, the Inland West is set to become a focal point for investment opportunities. The landscape here is rich with potential, yet many institutional investors have yet to realize this due to a lack of consolidated data and visibility. The research reveals that the Inland West's economic growth isn't merely a reflection of temporary trends; rather, it signifies a permanent shift that merits attention and consideration in future investment strategies.

As Graceada Partners manages nearly $1 billion in real estate assets, the report underscores its commitment to exploiting the economic opportunities within this region. By focusing on multifamily and multi-tenant industrial properties, the firm aims to harness the expanding market and foster sustainable growth.

Detailed findings, methodologies, and underlying data can be accessed through Graceada Partners' website, allowing other professionals and investors to explore the nuances of this evolving economic landscape.

In essence, the Inland West is no longer to be seen as a peripheral player in the national economy; it is now emerging as a dynamic and vibrant economic engine that rivals traditional powerhouses.