By Emily Hamann – Staff Writer, Sacramento Business Journal
The Sacramento region’s economy rebounded sharply in the first half of 2021, according to a new economic forecast. However, as the Covid-19-era factors that helped keep the economy afloat fade away, some of Sacramento’s longer-term problems may have gotten worse.
“I think for us, the one thing that stood out is that we’ve been a huge winner this past year,” said Sanjay Varshney, chief economist of the Sacramento Business Review. Last week, the Business Review released its annual midyear forecast.
In the first half of 2021, a flock of buyers from the Bay Area led to an explosion in home sales. And in commercial real estate, stimulus, relief programs and Federal Reserve support helped avoid huge spikes in vacancy, according to the report.
But, as the economy recovers, those factors could go away.
“As the free money dries up, and the party comes to an end, Sacramento may face a hangover and will need to work harder to thrive beyond an economy based only on housing, government, and service sector jobs,” Varshney wrote…
READ MORE: https://www.bizjournals.com/sacramento/news/2021/10/06/business-review-midyear-2021.html.