This is a sizable uptick from the 8 percent net reported in the November 1998 survey, but identical to the percentage noted in the February 1998 survey. Employment gains in the second quarter are expected to be strongest in Little Rock, Louisville and Memphis, with somewhat less strength evident in the St. Louis market. By the end of 1998, ten of the District's 12 metropolitan areas had issued more residential construction permits than they had in 1997. In all, four metro areas had record years for total residential construction in 1998, and six metro areas had built more single-family homes than ever before. This pace seems to have continued into 1999.
Nonresidential markets are more mixed.
Several agents have noted a softening in the office market and mildly increasing vacancy rates in central business districts. Commercial and industrial markets, however, remain relatively strong in most parts of the District. Banking and Finance Total loans on the books of a sample of large District banks have declined 2.5 percent since the start of the year. All loan categories have dropped from their 1998 year-end levels, with consumer loans posting the sharpest decline at 2.4 percent, followed closely by real estate loans with a 2.1 percent decline. Commercial and industrial loans, however, are essentially unchanged, declining just 0.1 percent.