Home prices, employment increase as Wyoming economy grows in Q2 2024

GILLETTE, Wyo. — Wyoming’s economy continued to grow in the second quarter of 2024, though the pace of expansion appeared to decelerate, according to the Wyoming Department of Administration and Information. 

Per a second-quarter state economic summary report from A&I, total employment increased by more than a percentage point compared to the previous year. The increase is in direct contrast to the nationwide growth rate, which decreased to 1.7%. 

Apart from mining, employment increased across all sectors including construction, manufacturing, government, K–12 education and healthcare. Mining, the state’s pivotal industry, decreased by 2.5%, according to the report. 

“Compared to the pre-COVID period of the second quarter of 2019, total employment was 1.1 percent higher, but the mining industry was still down by 20.7%, or 4,400 jobs,” the report says. 

Total earnings and personal income both grew by 5.4% while personal transfer receipts grew by 6.6%. Earnings across nearly all sectors demonstrated expansions from a year ago led by the construction industry, A&I says, adding that the only declines were recorded in the mining and farm industries, which declined by 2.4% and 7.3%, respectively. 

Statewide, the price of a single-family home increased by 5.5% in the second quarter of 2024 compared to one year ago, while single-family building permits grew by 12.6%. The national average price appreciation, however, decelerated to 5.7% during the same period, the report states. 

“Amid a scarcity of homes on the market, U.S. housing prices continued to climb, and the overall housing market is still overpriced,” the report says. “The principal reason is the extremely tight inventory for sale, which sits at about half the level of a balanced market.”

Per A&I, the majority of existing homeowners are tied to extremely low interest rates, greatly reducing their motivation to sell their properties. Affordability remains at a four-year low, wrestling with the slowest existing home sales since the 2008 financial crisis. 

According to the report, house prices will likely remain relatively stable due to supply constraints, though affordability is expected to improve over time through gradual income increases, reduced interest rates and flattening or decreasing home prices. 

Statewide, taxable sales decreased by 2.3% to $5.9 billion mostly due to a contraction in mining activity and reduced projects in the utilities industry. It is the first decrease since 2021, the report says. 

In terms of taxable sales, construction and manufacturing demonstrated growth rates of 25.2% and 18.8%, respectively. Transportation & warehousing and professional & business services also showed increases, while leisure & hospitality expanded by 7.2%, A&I says, adding that retail trade increased by 3.9%. 

Per the report, 11 out of 23 counties experienced decreases in taxable sales in a year-over-year, led by Carbon and Campbell counties, which declined by 19.6% and 16.5%, respectively. Niobrara County, on the other hand, experienced the largest increase at 82.4% due to a boost in mineral and wholesale trade undertakings. 

Yellowstone National Park saw over 1.5 million visitors in the second quarter of 2024, an increase of 9.7% from the previous year, while Grand Teton National Park had over 1 million. The visitation figure for Yellowstone was the highest recorded for the second quarter in history. 

Lodging sales for the second quarter were 37.7% higher than a year ago in Teton County and increased 17.3% statewide, the report states, adding that park visitation and mineral activities are the primary drivers of the Wyoming economy. 

Per A&I, agricultural sectors saw a rebound in the index of prices farmers received for all U.S. livestock and products. The index reached a new record in the second quarter, topping 147.7%, and was 8.4% higher than a year ago. 

According to the report, farm earnings across the state demonstrated a robust trend in 2022 and 2023, but have been running weaker this year. The second quarter of 2024 was 18.4% higher than the previous quarter but remained 7.3% lower than the previous year. 

Total income distributed to the Wyoming General Fund, including Permanent Wyoming Mineral Trust Fund and state agency pooled income accounts, amounted to 267.8 million, the report states, which is an increase of 108.2% from the amount recorded a year ago. 

According to the report, mineral severance taxes generated $165.9 million, around 7% lower than the previous year. This amount was the second smallest since the third quarter of 2021, mostly reflecting the pullback of natural gas prices and the steeper decline in coal production.