Recession felt in N.D.
Poll shows some North Dakotans curb spending while others can’t afford to cut backBy JILL SCHRAMM, Staff Writer jschramm@minotdailynews.com
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Nearly half of North Dakotans say they have curbed spending - a sign that the national recession is striking closer to home, according to poll results released today.
The poll commissioned by the Northwest Area Foundation found that 48 percent of North Dakotans have cut back, and 56 percent of respondents say the change in spending habits will be permanent.
Locally, Minot merchants aren't necessarily hurting from a shortage of shoppers. However, anti-poverty agencies say rising costs are increasing the ranks of the working poor in the Minot region. In essence, people are continuing to spend because they can or because they have to just to afford basic necessities.
John MacMartin, president of the Minot Area Chamber of Commerce, said some belt-tightening is to be expected among North Dakotans, given the manufacturing layoffs and the drop in retirement investments affecting people nearing retirement. Still, North Dakota is doing better than the nation as a whole, and the Minot area is faring better than many places in the state, he said.
"Things remain strong," MacMartin said. "We are somewhat insulated here."
Minot's city sales tax generated nearly $4.2 million in the first seven months of 2009, compared to about $4 million in 2008 and $3.7 million in 2007 over the same time period.
Cathy Tweten, specialty leasing manager at Dakota Square Mall, said sales there are steady. Some of that is due to Canadian traffic, which is up from last year, she said.
"I am sure people have probably watched their spending a little closer, but they say that North Dakota, in particular western North Dakota, seems to be standing pretty strong," Tweten said. "The real estate is strong. That's a big factor."
MacMartin said rising costs for real estate reflect the heavy demand, but even at the high costs, new construction is staying at record levels.
The flip side is occurring over at Community Action Partnership, where Willy Soderholm, executive director, said the agency has seen a significant increase in clients in the past year because of the increased costs of housing, food and fuel. Of those three areas, housing is the primary concern.
"There's a shortage of housing and what's occurred is by no fault at all with the landlords rents have gone up," he said. "A lot of our clients are working and some work two jobs. It's just harder and harder to make ends meet because of the rent and food and things like that. The cost of living is just getting higher."
Community Action shifted its budget dollars to accommodate the unanticipated demand for assistance with rents, mortgages and security deposits. That's where most of the federal stimulus dollars to the agency went, Soderholm said.
"We are happy that we have this stimulus money so we can provide help to the clients that we serve. I just really don't know where we would be if we didn't have that additional funding," he said.
Louis "Mac" McLeod, executive director for the Minot Area Homeless Coalition, also said the coalition is seeing an increase in people facing housing straits for the first time. Eighty percent are working and about 15 percent have retirement or other income, but housing isn't available in their price range.
Finding any kind of apartment in Minot is difficult with a vacancy rate of almost zero, McLeod said. Just building more apartments isn't likely to fully address the need because the need is for more low-income housing.
A committee looking at a 10-year plan for homelessness in Minot is working to complete a housing assessment, which would provide a better picture of the type of housing needed.
The Northwest Area Foundation survey showed about one in five North Dakotans has had trouble paying for basic needs such as housing and food in the past year. Four in 10 report an increase in the number of people struggling in their communities.
The poll also found that in the past year:
14 percent report they or family members have lost jobs.
22 percent report they or family members have had hours cut at work.
36 percent have cut down on food spending.
40 percent have cut back on saving for retirement.
16 percent have had a friend or family members stay with them because of lack of money.
25 percent have had trouble affording medical care.
Still, North Dakotans are less likely than Americans in general to experience effects of the recession.
Nationally, 61 percent of Americans have cut back spending, and 57 percent say the cutbacks are permanent. Twenty-seven percent of families have been affected by job losses and 38 percent by cuts in work hours.
North Dakotans remain optimistic despite the tough times. Fifty-five percent of North Dakotans surveyed said they are hopeful about the national economy, and 47 percent aren't worried about their local economy over the next year. Nationwide, people are just as hopeful about the national economy but worry more about their local economies.
This is the fourth survey commissioned by the foundation in the past five years. This year's survey polled 4,000 Americans to explore the effects of the recession on families, perceptions of poverty in communities and the roles of elected officials in addressing poverty. Lake Research Partners conducted the survey, which included 400 North Dakotans, in late June and early July. North Dakota findings have a error margin of plus or minus 5 percent.
