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HomeMy WebLinkAbout20181192 Ver 1_C540_ICE_Growth_Memo_1117_20180122Historic Growth Memorandum For Complete 540 — Triangle Expressway Southeast Extension DRAFT ; �= , i; i' �-i .�,�o����� �. 54p ��ex�. n,� .��. Wake and Johnston Counties STI P Nos. R-2721, R-2828, R-2829 Prepared for: Prepared By: Michael Baker Engineering I N T E R N AT I 0 N A L November 2017 Contents ExecutiveSummary .......................................................................................................................................1 Introduction..................................................................................................................................................2 Methodology and Region Definition .............................................................................................................2 Population..................................................................................................................................................... 7 RegionalTrends .........................................................................................................................................7 FLUSATrends ............................................................................................................................................ 9 PopulationDensity ......................................................................................................................................13 RegionalTrends .......................................................................................................................................13 FLUSATrends ..........................................................................................................................................14 AverageHousehold Size ..............................................................................................................................17 RegionalTrends .......................................................................................................................................17 FLUSATrends .......................................................................................................................................... 20 Employment................................................................................................................................................ 23 RegionalTrends .......................................................................................................................................23 FLUSATrends .......................................................................................................................................... 24 EducationalAttainment ..............................................................................................................................26 RegionalTrends .......................................................................................................................................26 FLUSATrends .......................................................................................................................................... 26 MedianIncome ...........................................................................................................................................27 RegionalTrends .......................................................................................................................................27 FLUSATrends .......................................................................................................................................... 27 SchoolQuality .............................................................................................................................................30 RegionalTrends .......................................................................................................................................30 FLUSATrends .......................................................................................................................................... 34 AverageCommute ...................................................................................................................................... 36 RegionalTrends .......................................................................................................................................36 FLUSATrends .......................................................................................................................................... 39 Regional Economic Drivers and Related Trends ..........................................................................................42 ResearchTriangle Park ............................................................................................................................42 WakeCounty Trends ...............................................................................................................................43 Conclusion................................................................................................................................................... 44 WorksCited .................................................................................................................................................46 Executive Summary The North Carolina Department of Transportation (NCDOT) and the Federal Highway Administration (FHWA) propose to build a new, full-control of access highway from NC 55 Bypass in Apex to the US 64/US 264 Bypass (I-495) in Knightdale, a distance of approximately 28 miles. This proposed highway, known as Complete 540 —Triangle Expressway Southeast Extension, is proposed as a toll facility. This memo was developed to examine historic demographic trends that may influence existing or future regional population and employment growth trends. Most of these historic growth trends are not directly related to transportation infrastructure, and examining them may indicate likely growth patterns that would occur with or without a specific roadway project. Growth trends were examined for the Raleigh-Durham-Chapel Hill, NC Combined Statistical Area (CSA) and the Complete 540 Future Land Use Study Area (FLUSA) for recent reporting periods beginning in 1990. This region, also known more informally as the Research Triangle Region, has unique economic drivers that have created economic success and continue to foster growth. The three major universities in the region, University of North Carolina at Chapel Hill, North Carolina State University, and Duke University, formed the Research Triangle Park (RTP) in 1959 to link their talent and resources with public- and private-sector research entities and companies focused on innovation. Over 250 businesses employing over 50,000 people are currently located in RTP, the nation's largest research park. Areas of specialization include biotechnology and information technology, and the region's research and partnerships also support a world-class medical community. Further, in addition to all the employment generated to serve a region of over 1 million population with education, social services, retail, and other services, regional employment is also boosted by the presence of the State government in Raleigh. CSA and FLUSA level data show a pattern of sustained population and employment growth and increases in population density in addition to a concentration of recent growth within Wake County. The other FLUSA counties (Harnett and Johnston) also show strong growth and are projected to increase in population through 2035. Growth indicators at the CSA level, namely employment, average household size, educational attainment, median income, and school quality indicate that growth will very likely continue in the counties comprising the project FLUSA. Analysis of population, population density, average household size, school quality, and commute in the FLUSA counties at the sub-county level further indicates growth is likely within the FLUSA. The FLUSA area has both positive and negative indicators for growth compared to the other zones in the three-county study area. Within the FLUSA counties, growth indicators suggest that much of the future population growth will occur within Wake County. Population densities are still relatively low outside of the urban core of the City of Raleigh, leaving ample room for additional growth in the suburban and rural portions of the county. In particular, population density is relatively low in the FLUSA, suggesting that there may be land available for development. With higher median household income and a greater perceived school quality than neighboring counties, many new residents and potential homebuyers would be attracted to Wake County. School quality appears to be highest in central, western and northern Wake. Northern Harnett County and eastern Johnston County appear to have some positive growth factors, particularly the relatively low population densities and increases in employment and median income. Johnston County appears to have a higher quality school district, and would therefore be more likely to attract growth, relative to Harnett County. Introduction The North Carolina Department of Transportation (NCDOT) and the Federal Highway Administration (FHWA) propose to build a new, full-control of access highway from NC 55 Bypass in Apex to the US 64/US 264 Bypass (I-495) in Knightdale, a distance of approximately 28 miles. This proposed highway, known as Complete 540—Triangle Expressway Southeast Extension, is proposed as a toll facility. The project is located within the greater Raleigh area, known as the Research Triangle Region, which includes Raleigh, Durham, Chapel Hill, and the surrounding counties. The Research Triangle refers to the three premier universities in the region, University of North Carolina in Chapel Hill, North Carolina State University in Raleigh, and Duke University in Durham. Raleigh is both the state capital and the seat of Wake County. Durham is the county seat of Durham County and Chapel Hill is the largest city in Orange County. More specifically, the project would be located in southern Wake County and western Johnston County. The Research Triangle region is known for its medical, technology, and education economic clusters.l It contains the largest research business park in the U.S. (Research Triangle Park or RTP) and has spent decades harnessing the synergy between the three premier universities in the region, public sector research, and private sector research and development. RTP alone hosts over 250 businesses employing over 50,0000 people, with over 3,000 patents awarded to RTP tenants since 19702. The region ranks 5tn in educational attainment among 36 comparable regions, with about half of residents attaining a Bachelor's Degree or higher, and nearly 1 in 5 residents holding a graduate degree.3 The purpose of this memo is to examine historic trends in population and employment growth, along with other changes in demographic factors, which may affect existing or future regional population and employment growth trends. Information about the region's economic drivers and notable trends related to growth are also provided to add context to the regional and study area trend analysis. Most of these historic growth trends are not directly related to transportation infrastructure, and examining them may indicate likely growth patterns that would occur with or without a specific roadway project. This memo examines population growth, population density, average household size, educational attainment, median income, employment, school quality, and commute time to understand the historic growth trends and to assess what these trends and factors suggest about growth trends in the future. These factors were chosen based on readily available historic data from state and federal resources. In addition, as described in subsequent sections of this memo, research indicates that these factors may help explain past and future growth trends. Methodology and Region Definition The US Census includes Raleigh and the surrounding area in multiple geographies. This memo is concerned with the following geographies: Raleigh-Cary, NC Metropolitan Statistical Area (MSA), defined by the US Census Bureau as Franklin, Johnston, and Wake counties; and Raleigh-Durham-Chapel Hill, NC Combined Statistical Area (CSA), defined by the US Census Bureau as Franklin, Johnston, Wake, Chatham, Durham, Granville, Harnett, Lee, Orange, Person, and Vance counties. 1 Research Triangle Regional Partnership n.d. z The Research Triangle Park, 2017. 3 Ibid 2 Prior to initiating studies of potential Indirect and Cumulative Effects (ICE), NCDOT and FHWA, in consultation with resource agencies, defined a Future Land Use Study Area (FLUSA). The FLUSA is the area surrounding the proposed Complete 540 project that may be affected as a result of the project in combination with other public and private development projects (see Figure 1), and includes parts of Harnett, Johnston, and Wake counties. The FLUSA was identified in the Qualitative ICE Report and will continue to be the main study area in the analysis of the Quantitative ICE Report to be conducted for the Final Environmental Impact Statement (EIS) for the proposed roadway.4 The MSA regional definition does not include Harnett County; using the MSA designation as the basis for the regional analysis would ignore a part of the FLUSA. In addition, the Triangle Region is an inter- connected and polycentric metropolitan region and limiting the regional analysis to the MSA would exclude key counties, such as Durham and Orange counties, from the analysis. Therefore, this memo uses the CSA definition of the region as the basis for evaluating historic growth patterns across the larger Raleigh-Durham-Chapel Hill area. In addition to analyzing growth and trends over time at a regional level, this memo examines growth and trends at a sub-county level among the three counties comprising the FLUSA, where such information is available. Sub-county zones (called Census regions in this memo) were established based on block group boundaries created by the US Census Bureau (see Figure 2). Block group boundaries often change with each decennial census. For this reason, only boundaries that remained constant between the 1990, 2000, and 2010 Censuses were used to develop the Census regions. The zones defined are aggregations of Census block groups, but the specific block groups vary for each census year. This memo only analyzes trends at the Census region level for the three counties in the FLUSA region (Harnett, Johnston, and Wake), rather than all counties in the CSA. Census regions include the first letter of the county name and a number. Eight Census regions are within the FLUSA boundary. These are Zone H1, Zone J1, Zone J5, Zone W1, Zone W3, Zone W4, Zone W6 and Zone W8. Table 1 provides the percentage of each Census region within the FLUSA boundary. 4 H.W. Lochner, Inc. 2014 3 Table 1: Census Regions within the FLUSA Boundary Zone H1 Zone H2 Zone H3 Zone H4 Zone J1 Zone J2 Zone J3 Zone J4 Zone J5 Zone W1 Zone W2 Zone W3 Zone W4 Zone W5 Zone W6 Zone W7 Zone WS Harnett Yes No No No Johnston Yes No No No Yes Wake Yes No Yes Yes No Yes No Yes 4 13 0 0 0 78 0 0 0 14 <1 0 83 45 0 82 0 1 Figure 1: FLUSA and MSA Location Figure 2: FLUSA Census Regions 0 Cc�m�let� 540 Demagr�,phics Cer�sus Regians � FLUSA Boundary � Census Region Boundaries 0 County Bounc�aries Census Regions were created by combinirng 1990, 2000, an�d 20'86 Census Block Groups. The regions were created to follow Block Group Boundaries that did not change over the 20 year period. Census Block Group data wvas aggregated into those regions for the purposes of this analysis. 10 20 Miles I N T E R N A T I 0 N A 6 Population Regional Trends Both historic population data from the US Census and population forecasts produced by the North Carolina Office of State Budget and Management (NCOSBM) State Demographics branch show a pattern of high population growth in the CSA from 1990 to 2010 that is anticipated to continue into 2035. As shown in Table 2, between 1990 and 2000, the CSA grew by 36 percent; followed by a growth of 31 percent between 2000 and 2010. Overall, the population of the CSA grew by 78 percent between 1990 and 2010. Wake County had the highest overall population in 1990, 2000, and 2010. The counties that have historically experienced the greatest growth rates are Wake and Johnston counties, at 113 percent and 108 percent growth, respectively, from 1990 to 2010. While every county in the CSA experienced growth, Lee, Person, and Vance counties grew more slowly than the CSA as a whole. Between 1990 and 2010, the population grew by 40 percent in Lee County, 31 percent in Person County, and 17 percent in Vance County. Figure 3 illustrates the population growth rate trends within the CSA. Analyzing county growth as a percent of the CSA shows the distribution of population growth across the CSA. This is reflected in the Table 2 column "County Share of CSA Population Growth (%) 1990-2010." Historically, Wake County captured the greatest percentage of CSA population growth, accounting for 57 percent of growth between 1990 and 2010. Durham and Johnston counties both captured 10 percent of CSA population growth. Table 2: Population Changes for Raleigh-Durham-Chapel Hill, NC CSA Counties 1990- � Growth 1990 2000 2010 2010 1990-2010 Growth FLUSA Counties Harnett 67,822 91,025 114,678 46,856 Johnston 81,306 121,965 168,878 87,572 Wake 423,380 627,846 900,993 477,613 Remaining CSA Counties Chatham 38,759 49,329 63,505 24,746 Durham 181,835 223,314 267,587 85,752 Franklin 36,414 47,260 60,619 24,205 Granville 38,345 48,498 59,916 21,571 Lee 41,374 49,040 57,866 16,492 Orange 93,851 118,227 133,801 39,950 Person 30,180 35,623 39,464 9,284 Vance 38,892 42,954 45,422 6,530 CSA Total 1,072,158 1,455,081 1,912,729 840,571 Source: US Decennial Census, Summary File 1, Table P1, 1990, 2000 and 2010. Percentages are rounded and the sum may not equal 100%. 7 69 108 113 County Share of CSA Population Growth (%) 1990 - 2010 6 10 57 64 3 47 10 66 3 56 � 3 40 2 43 � 5 31 1 17 1 78 - Figure 3: Regional Population Trends 1990 � 2000 Person Granvill � Vance Orange Chatham Lee � � Harnett �:, Franklir� 2000 - 2010 0 Complete 5�0: Regional L��mographics P�p�latian Change Interstates �6 US RouteS � FLUSA Boundary � Cflunty Boundary Percent Populakion Change 4% - 12% 13% - 20% � z�% - 30°io i 31 °/a - 40% � 41 % - 51�' °/a � W�E �i s 0 20 40 I i I i I Miles I N T E R N A T I 0 N A L Based on forecasts produced by the State Demographics branch, these population growth patterns are anticipated to continue (see Table 3). Overall, the population of the CSA is forecast to grow by 46 percent between 2010 and 2035, a 2 percent annual growth rate. According to forecasts, Johnston County will experience the highest percentage of population growth during that period, eclipsing Wake County. However, this difference is largely a function of the smaller population base in Johnston County. Wake County will experience the second highest percentage growth between 2010 and 2035. Forecasts indicate that historic trends in the distribution of regional growth by county will continue between 2010 and 2035. As shown in Table 3, Wake County is forecast to capture 57 percent of the regional population growth from 2010 to 2035, while Durham County is forecast to capture 16 percent. Johnston County is forecast to capture 11 percent of CSA growth, while Harnett County is expected to capture 7 percent. Forecasts anticipate that Granville, Lee, and Person counties will capture less than 5 percent of the region's growth. Vance County is forecast to lose population between 2010 and 2035. Table 3: Population Forecasts for Raleigh-Durham-Chapel Hill, NC CSA Counties 2010 2020 2035 2010- � County Share of 2035 Growth CSA Population Growth 2010- Growth (%) 2035 1990 -2010 FLUSA Counties Harnett 115,724 139,259 173,080 57,356 50 Johnston 169,612 201,850 263,815 94,203 56 Wake 906,910 1,105,706 1,406,726 499,816 55 Remaining CSA Counties Chatham 63,786 75,494 92,418 28,632 45 Durham 271,303 325,799 408,936 137,633 51 Franklin 60,823 66,881 76,008 15,185 25 Granville 57,599 59,236 62,100 4,501 8 Lee 57,879 59,242 59,363 1,484 3 Orange 134,053 149,922 174,888 40,835 30 Person 39,428 39,588 40,071 643 2 Vance 45,314 44,847 44,775 -539 -1 Regional Total 1,922,431 2,267,824 2,802,180 879,749 46 Source: NCOSBM State Demographics, last updated October 8, 2015 Note: 1) Based on estimated populations in July of that year. 2) Regional Total % may not sum to 100% due to rounding. 7 11 57 3 16 2 1 0 5 0 0 Current population forecasts predict continued growth for the majority of CSA counties. Historic population data shows a pattern of high growth, which forecasts indicate will continue at a more modest rate from 2010 to 2035. Wake and Johnston counties are forecast to capture the highest percentage of population growth in the CSA and Wake County is expected to continue to capture the majority of the region's growth. FLUSA Trends When analyzing population data for the FLUSA counties, growth varies within each county. Table 4 further outlines population trends within the FLUSA. Harnett County experienced the least growth and the lowest growth rate among the FLUSA counties, growing at 69 percent between 1990 and 2010. During this time, the population distribution shifted within the county. In 1990, Zone H2, in the eastern section of the county, had the highest population. By 2010, Zone H4, the southern portion bordering the 0 Fayetteville and Fort Bragg areas in Cumberland County, had the largest share of the county population, growing by 157 percent since 1990. Population in Zone H1, which borders Wake County, grew by 91 percent in the same period. As seen in Figure 4, population increased in the northern and southern sections of the county (Zones H1 and H4). Zone H2 and Zone H3 grew at a slower pace than the other two zones and had lower populations in the 2010 Census. Johnston County also experienced a shift in population distribution during this period. Historical Census data indicates that the population shifted from a relatively even distribution across the county to a more concentrated population along the Wake-Johnston border. In 1990, Zone J1, Zone J3, and Zone J5 in the western, eastern, and southern areas of Johnston County, respectively, had similar total populations. Between 1990 and 2010, the population of Zone J1 more than doubled (growing by 41,805). By 2010, Zone J1 had the highest population in the county (62,053). Zone J2, which also borders Wake County, also doubled in population. This zone experienced the fastest growth, 215 percent. Zone J5, which includes part of the southern portion of the FLUSA experienced a 90 percent growth rate between 1990 and 2010. Table 4: Ponulation Growth in FLUSA Counties Harnett 67,822 91,025 114,678 46,856 69 Zone H1 16,164 24,064 30,931 14,767 -� 91 � Zone H2 23,018 23,881 24,358 1,340 6 Zone H3 12,585 16,416 18,098 5,513 44 Zone H4 16,055 26,664 41,291 25,236 157 Johnston 81,306 121,965 168,878 87,572 108 Zone J1 20,248 38,995 62,053 41,805 206 Zone J2 8,591 15,474 27,070 18,479 215 � Zone J3 20,122 24,354 26,199 6,077 30 Zone J4 11,404 12,968 13,845 2,441 21 Zone J5 20,941 30,174 39,711 18,770 90 Wake 423,380 627,846 900,993 477,613 113 Zone W1 86,516 94,597 103,454 16,938 � 20 Zone W2 44,531 100,307 177,512 132,981 298 Zone W3 70,353 92,540 109,933 39,580 � 56 Zone W4 46,854 74,895 124,867 78,013 � 166 Zone W5 94,928 117,138 126,772 31,844 � 34 Zone W6 32,497 66,915 114,625 82,128 252 Zone W7 30,271 59,008 116,664 86,393 I 285 Zone W8 17,430 22,446 27,166 9,736 56 Source: US Decennial Census, Summary File 1, Table P1, 1990, 2000 and 2010 Notes: 1) Population totals for Harnett County in 1990 and 2000 vary slightly from the Indirect and Cumulative Effects Report by H.W. Lochner, Inc. The difference in population is 11 people and 4 people lower, respectively. There is no clear reason for this small difference as this memo and the Lochner report used official US Census Bureau data collected from authoritative sources. 2) FLUSA Census regions are shown in bold. In 1990, the population in Wake County was concentrated in and around the City of Raleigh, which is mostly included in Zone W1, with portions in FLUSA area Zones W3 and W4. However, during the following two decades Wake County experienced high population growth and much of that growth occurred in surrounding zones. By 2010, population in Wake County was more evenly distributed across 10 the county. According to the 2010 Census, all but one zone (Zone W8) in Wake County had populations over 100,000. During this period Zone W6 experienced an exceptionally high growth rate (252 percent). Both Zones W6 and W8 are FLUSA zones. Zones W3 and W4 grew by 56 percent and 166 percent, respectively. To summarize, Census data show Wake County was and continues to be the dominant population center in the region. The FLUSA counties, Harnett, Johnston, and Wake, had the highest percent growth in the CSA from 1990 to 2010. Population projections indicate that FLUSA counties are likely to grow at a rate higher than the CSA average through 2035. Zones within Harnett and Johnston Counties that are part of the FLUSA experienced substantial growth between 1990 and 2010. While growth within Wake County was more variable, Zones W3, W4, and W6, which include the majority of the FLUSA in Wake County, had growth rates of 56 percent, 166 percent, and 252 percent, respectively. The population growth trends during and after the recession that began in late 2008 are also relevant to an understanding of growth trends in the FLUSA. Historical data taken from the ACS shows continual population growth in Harnett, Johnston, and Wake Counties over the last decade. The year of slowest growth occurred between 2009 and 2010 when the population grew by only 2.3 percent -- Harnett County's by less than one percent. Between 2010 and 2015 the three counties experienced a combined growth of 14 percent. The FLUSA experienced an even larger growth during the same period of approximately 18 percent. The robust growth of the FLUSA counties and the FLUSA itself during and after the recession suggests the area has highly resilient drivers of growth. Table �����on Grow�h TrFi,ds in cl F� LUS' �o �e�� 7GJ` � , , • % CAGR County 2009 2010 2012 2015 Growth 2010- / Growth 2010-2015 2009- 2015 � Harnett 108,885 109,031 115,559 124,320 Johnston 156,888 160,675 169,122 178,396 Wake 828,759 850,546 905,573 976,019 Total 1,094,532 1,120,252 1,190,254 1,278,735 FLUSA N/A 256,959 278,436 303,383 Source: US Census American Community Survey, Five Year, Table 50101 11 2010 0.1 2.4 2.6 2.3 N/A 2.7 2.1 2.8 2.7 3.4 14 � 11 15 14 18 Figure 4: Popu/ation Changes in the FLUSA Counties �nnn nnnn `� �mplete 540 �emo�;raphics 12 Populatian �hange Interstates �- US Rautes � �County Boundaries � FLUSA Boundary Census Region Bour�daries Census Regior�s Perc+ent Popc�lation Change 2% - 15% 15.1 % - 25% 25.1 % � 35% i 35.1 % - 45% i 45.1 % - 56% Census Block Group data was aggregated into Census Regions for the purposes of this analysis. Census Regions were created by combining 1990, 2�OD, and 2010 Census B1ock Groups. The regioms were created to follow Block Group Boundaries that did not change over the 20 year period. N W�E e 0 1 f3 20 I i I � I Miles INTEdiNATIONA L Population Density Regional Trends Population density is the number of people per square mile. Changes in population density over time often show similar patterns as population growth, but can also be a helpful indicator of the availability of land for future development. Where population density is particularly high, it suggests that there is less land available for development; therefore, the area may see slower growth in the future. Census data show a pattern of increasing population density in the CSA region (see Table 6). The average population density in the CSA increased from 198 people per square mile in 1990 to 327 people per square mile in 2010. This is a 65 percent increase in population density between 1990 and 2010. Overall, population density increased continuously over the twenty years of data analyzed in each of the CSA counties. In 1990 and 2000, Durham County had the highest population density in the CSA. Wake County had the second highest population density, followed distantly by Orange County. Eight of the eleven counties in the CSA had population densities below the regional average. These counties are farther from the urban centers of Raleigh, Durham, and Chapel Hill, and include Chatham, Franklin, Granville, Vance and Person counties. Table 5 shows population density data for the CSA over time. While population density continued to increase between 2000 and 2010, growth varied through the CSA (see Figure 5). Wake County eclipsed Durham in the 2010 Census with a population density of 1,079 people per square mile, compared to Durham's population density of 936 people per square mile. Both Wake and Durham counties consistently had population densities higher than the CSA average. Table 6: Density for Raleigh-Durham-Chapel Hill, NC CSA Counties Population 2010 Density Change (1990-2010) FLUSA Counties Harnett 114 153 � 193 79 � 69 Johnston 103 154 213 110 � 107 Wake 508 755 � 1,079 571 _ 112 Remaining CSA Counties Chatham 57 72 � 93 36 Durham 626 769 936 310 Franklin 74 96 123 49 Granville 72 91 113 41 Lee 161 191 227 I 66 Orange 235 296 336 101 Person 77 91 101 24 Vance 153 169 ' 179 26 � Regional 198 258 327 129 Average Source: US Decennial Census, 1990, 2000 and 2010, Summary File 1, Table GHT-PH1 Percentages are rounded to the nearest whole percent. 13 63 SO 66 57 41 43 31 17 65 While Wake County had a population density of 1,079 people per square mile in 2010, this does not necessarily mean that the area has reached build out or that additional growth cannot occur. An illustrative comparison is the growth pattern of population density in the Charlotte-Gastonia-Rock Hill CSA. Like the Raleigh-Durham-Chapel Hill CSA, the Charlotte-Gastonia-Rock Hill CSA has a strong urban core in Charlotte and interdependent surrounding counties and municipalities. Charlotte is located in Mecklenburg County, whose population density of 1,322 people per square mile in 2000 exceeded Wake County's 2010 population density. However, Mecklenburg County has continued to grow, reaching 1,756 people per square mile in 2010. If Wake County follows a similar trend to Mecklenburg County, its population density is likely to increase during the foreseeable future. While population densities in surrounding counties suggest that they may have a greater amount of developable land, it does not appear that population density in Wake County has reached a level that would limit growth. FLUSA Trends Population density in the FLUSA counties follows similar trends as population growth. Densely populated areas in the FLUSA are predominantly concentrated in zones near urban areas. As with population growth, higher population densities occurred in zones along the Wake County border in Johnston County and in zones along both the Wake and Cumberland borders in Harnett County. Overall trends in Wake County show population density is highest in and around the urban core of the City of Raleigh and Town of Garner (Zones W1, W3, W4, and W5) (see Table 7). Harnett County population density is highest in Zone H2. However, this zone only grew by six percent between 1990 and 2010. The highest increase in population density occurred in Zone H4, which is adjacent to Cumberland County. Zone H1, which is adjacent to Wake County, experienced the second highest increase in population density between 1990 and 2010. Both Zone H1 and Zone H4 had lower population densities than Zone H2. Current data suggests that these zones still have developable land that could support future growth (Figure 6). Population density in Johnston County is highest in Zone J1, which is adjacent to Wake County. The zones with the highest population density increases between 1990 and 2010 are Zone J1 and Zone J2 (near the Town of Clayton). These areas appear to have ample space for continued development in the future. Zone J3 has a similar population density to Zone J2; however, it experienced a much lower increase in population density. Trends suggest that Zone J1 and Zone J2 will continue to be areas of high population growth. Within Wake County, the area with the highest population density is Zone W1, which is primarily the center of the City of Raleigh. However, population density in Zone W1 increased slowly, indicating that much of the land there is already developed. Zones that experienced the greatest increase in population density are Zone W2, Zone W6, and Zone W7. While Zone W6 and Zone W7 had high population density growth, the population densities in the 2010 US Census are low when compared to other zones. Lower relative density suggests that there is still available land for development in those areas. This, coupled with the increasing density and continuing trends in population growth in these zones, indicates that these areas may continue to support development and increased population in the future. 14 Figure 5: Regional Population Density Trends �99Q - 2000 Granville� � \!a n r.F 2040 - 2010 15 Complete 540: Regional Demographics Popul�tior� Density Change I nte rstates /� US Routes � FLU�A �oundary � Cou�nty �aundary Percen# Populatoon Density Change 6% - 1 �% 13% - 20% � 21 % - 30% � 31 °fo - 44% i 41 % - 50°to N W�E 3 0 20 40 I i I i I Miles I N T E R N A T I 0 N A L Table 7: Population Density in the FLUSA Counties Harnett 114 153 193 Zone H1 105 156 200 � Zone H2 284 295 301 Zone H3 71 94 103 Zone H4 84 140 216 Johnston 103 154 213 ZoneJ1 148 286 455 ZoneJ2 62 113 198 �ZoneJ3 149 180 194 ZoneJ4 74 84 90 ZoneJS 90 130 170 Wake 508 755 1, 079 Zone W1 2,881 3,150 3,445 Zone W2 335 755 1,335 Zone W3 760 1,000 1,187 Zone W4 403 644 1,074 Zone W5 1,746 2,155 2,332 Zone W6 185 380 652 Zone W7 186 363 717 Zone W8 189 243 295 Source: US Decennial Census, 1990, 2000 and 2010, Summary File l, Table P1. Note: FLUSA Census regions are shown in bold. 79 95 17 32 132 110 307 136 45 16 80 571 564 1,000 427 671 586 467 531 106 69 90 6 45 157 107 207 219 30 22 89 112 20 299 56 166 34 252 285 56 Population densities within the FLUSA counties suggest certain Census regions of Harnett, Johnston, and Wake counties have sufficient available land to support continued growth. In Harnett County, areas adjacent to Cumberland and Wal<e counties (including FLUSA Zone H1) show a trend of increasing, but still relatively low population density. Johnston County follows similar trends, with areas of increasing population density in FLUSA Zones J1 and J2 adjacent to Wake County. Growth in Wake County shows population density is increasing in areas north and south of the City of Raleigh (FLUSA Zones W3, W4, and W6), which contain most of the FLUSA in Wake County. Population density in Zone W1, which includes the urban core of Raleigh, grew at a slower rate. 16 Average Household Size Regional Trends Analyzing household size may aide in the understanding of the type of household living in a particular area. Typically, if household size is greater than two residents, that household is more likely to include dependent children. These households are also more likely to make more daily trips. Conversely, households with two or fewer residents are considered less likely to have dependent children and, for that reason, are expected to make fewer daily trips. National Census data from the 1990, 2000, and 2010 show a pattern of household size decreases, with more people living alone, waiting to have children, and/or having fewer children.5 As shown in Table 8 and Figure 7, Harnett, Johnston, Orange, and Wake counties experienced an increase in household size between 1990 and 2010. However, a majority of the counties in the CSA experienced a decline in household size. These counties include Chatham, Durham, Franklin, Granville, Person and Vance. The decline in household size for these counties varies from two to five percent. Lee County experienced a slight increase in household size between 1990 and 2000; however, the household size decreased between 2000 and 2010, and overall decreased slightly between 1990 and 2010. Table 8: Household Size % Change 1990- 2010 FLUSA Counties Harnett 2.60 2.61 2.68 3 Johnston I 2.55 2.58 2.70 6 Wake 2.46 2.51 2.55 4 Remaining CSA Counties Chatham 2.51 2.47 2.43 Durham � 2.40 2.40 2.35 Franklin 2.61 2.58 2.56 Granville � 2.68 2.58 2.57 Lee 2.59 2.61 2.58 Orange I 2.34 2.36 2.41 Person 2.61 2.50 2.47 Vance 2.69 2.60 2.56 CSA Average 2.49 2.50 2.53 Source: US Decennial Census, 1990, 2000 and 2010, Summary File 1, Table H1 Note: Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010 -3 -2 -2 -4 -1 3 -5 -5 2 5 US Census Bureau. 2010 Census Briefs - Households and Families 2010. Issued April 2012. 17 Figure 6: FLUSA Population Density Trends �nnn nnnn � -�m�pl�te 54(�� D�magraphics 18 I�opulat�on Density Change Interstates �- US Routes � County Boundaries � FLUSA Boundary Census Reguon Boundaries Census Regions Percec�t Population aensity Change 2% - 10% � a.7 Qio - soQra �� 3a. � °�o - �a��a i �a. � �ro - �a�io i 7Q.1 %o - 125% Census Block Group data was aggregated into Census Regions for the purposes of this analysis. Census Regions were created by carnbining 'V990, 2000, and 2010 Census Slock Groups. The �egions were created to fol�low Block Group Boundaries that did not chenge over the 20 year period. N W�E Y e o �0 20 i � i � i Mi�es 1 N T E R N A T I m N A L Figure 7.• Regional Changes in Average Household Size 1��0 - Z000 2000 - 2010 Person) I Granvi Orang� C�; rham �o 1� ��1 Chatham fi4 so� Wake � Lee � 421 // /.�. Ha�nCl�l fu"r. 19 Vance , � � u Franklin Jahnston '\ L � �� ,,��� f' Complete 540: Regional Demographics Househa�d Size Cha�ge Int�rstates /�� �JS Routes � FLUSA �oundary � County �oundary Percent Household �ize Change + -4.2°!o to -2.5% -2.4°/a to -1 % -Q.9% t0 1 % a.1%to2.5% i 2.6% to 4% rv W�E �r e Q 20 40 I i I i I Miles INTEVtNpTIONAL FLUSA Trends As discussed previously in this document, an average household size greater than two can indicate that there are dependent children in the household. In addition to being an indicator of a greater number of trips per day, the presence of children within the household may increase the perceived importance of school quality in home buying decisions relative to other counties in the CSA. All counties within the FLUSA experienced an increase in household size, indicating the demand for high quality schools is likely higher in these areas. The average household size in Harnett County was the highest within the FLUSA in the 1990 and 2000 Censuses (see Table 9). However, Johnston County had a larger average household size than Harnett County in the 2010 Census. Zones H2 and H3 had declining average household sizes while Zone H4 had a consistently increasing household size (see Table 9 and Figure 8). Zone H1, which is included in the FLUSA, had a slight increase in household size from 1990 to 2010. The average household size in Johnston County grew between 1990 and 2010, increasing by 6 percent during that time. The average household size is highest in Zone J1 and Zone J2, which are part of the FLUSA and adjacent to Wake County. The average household size in Wake County grew between 1990 and 2010, albeit more slowly than either Johnston or Harnett County. As depicted in Figure 8, the household size in Wake County at the Census region level varies greatly in each of the decennial censuses. In Zone W1, the urban core of the City of Raleigh, the household size grew by the largest margin in the county between 1990 and 2010. The highest average household sizes are in Zone W4, Zone W6, and Zone W7. Table 9: Averaae Household Size in the FLUSA Counties Harnett Zone H1 Zone H2 Zone H3 Zone H4 Johnston Zone J1 Zone 12 Zone J3 Zone J4 Zone J5 Wake Zone W1 Zone W2 Zone W3 Zone W4 Zone W5 Zone W6 Zone W7 1990 2. 60 2.79 2.55 2.84 2.73 2.55 2.68 2.63 2.53 2.49 2.55 2.55 2.48 2.48 2.57 2.63 2.46 2.77 2.76 2000 2.61 2.73 2.50 2.81 2.77 2.58 2.72 2.70 2.54 2.47 2.58 2.59 2.60 2.51 2.59 2.68 2.42 2.77 2.79 2010 2. 68 2.80 2.47 2.74 2.93 2. 70 2.80 2.84 2.60 2.60 2.69 2.61 2.67 2.50 2.48 2.78 2.34 2.82 2.78 % Change 1990-2010 3 <1 -3 � -4 J� � 6 4 8 3 4 5 2 8 <1 -4 6 -S 2 <1 Zone W8 2.74 2.70 2.73 <-1 Source: US Decennial Census, 1990, 2000 and 2010, Summary File 1, Table H1 Notes: 1) Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010. 2) FLUSA Census regions are shown in bold. 2� Overall, average household size for counties in the FLUSA has grown during the last 20 years. In Harnett County, average household sizes are highest along the borders with Wake and Cumberland counties. The average household size in Johnston County is higher along the Wake County border, with lower household sizes in the central and eastern parts of the county. Lower household sizes in Wake County occurred in the middle and western parts of the county. Higher household sizes occurred in the northern and southern portions of the county. Wake County zones within the FLUSA showed various trends in household size, with most (Zones W1, W4, and W6) increasing while others (Zones W3 and W8) decreased. 21 Figure 8: FLUSA Changes in Average Household Size �nnn nnnn � �m�plete 54(� Demc�graphics Household Size Ch�.nge Interstates i� US Rautes � FLUSA Boundary � County Boundaries Census Region Boundaries Censws Regi�ons Percent Household Size Change � -4% t0 -2.5% -2.4% tt7 -1 % -0. 9 °/a to 1 % 1.1'%t03% i 3.1 % to �.7% 22 Census Bloek Group data was aggregated into Census Regions for the purposes of 4his analysis. Census Regions were created by combining 1990, 2000, anc� 2010 Census Block Groups. The regions were create� to follow Block Group Boundaries ihat did not change over the 20 year period. N W�E 8 0 10 2D I i I i I Miles I N T E R N A T I 0 N A L Employment Regional Trends Historical employment data collected by the North Carolina Department of Commerce shows that the number of people employed in the CSA increased from 1990 to 2015 (see Table 10 and Figure 9). Between 1990 and 2015, regional employment grew by 72 percent, or about 422,158 jobs. This growth was most dramatic between 1990 and 2000, with 33 percent employment growth during this period. Growth between 2000 and 2010 was more modest at 14 percent. However, this slower employment growth may be attributed, in part, to the 2008 economic downturn. During the five-year period between 2010 and 2015, employment grew by 12 percent, a 2 percent annual average. Table 10: Average Annual Employment � 1990 2000 Harnett Johnston Wake Chatham Durham Franklin Granville Lee Orange Person Vance 30,179 42,787 248,082 21,445 99,302 17, 945 18, 746 20,162 52,026 15,653 18,701 1990- 2010 2015 2015 Growth FLUSA Counties 40,831 43,253 46,788 16,609 62,432 73,576 83,732 40,945 358,674 440,623 514,344 266,262 Remaining CSA Counties 26,179 28,033 31,336 9,891 119,017 131,566 148,179 48,877 23,709 24,903 27,344 9,399 21,599 24,716 27,132 8,386 23,723 23,633 24,115 3,953 63,423 65,332 70,757 18,731 17,430 16, 383 16,911 1,153 18,933 16,332 16,548 -2,153 / 1990-2015 County Growth Employment 1990 - Growth as % of 2015 CSA Employment Growth 55 96 107 46 49 52 45 20 36 8 -12 Regional 585,028 775,950 888,350 1,007,186 422,158 72 Total Source: North Carolina Department of Commerce, Labor & Economic Analysis Division Notes: 1) Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010, 2) County percentages have been subject to rounding 4 10 63 2 12 2 2 1 4 0 -1 Generally, areas with job growth tend to also experience population growth. Historic employment data in the CSA follows similar patterns to both population and population density. Wake County captured 63 percent of regional employment growth from 1990 to 2015 and experienced 107 percent employment growth during that time. As shown in Table 10, this is much higher than any other county in the region. This growth was steady throughout the period analyzed. Between 1990 and 2000, employment in Wake County grew by 45 percent. Growth continued at a more modest rate (23 percent) between 2000 and 2010. This growth continued, and employment grew by 15 percent between 2010 and 2015. Historic employment data shows that Wake County continues to be a place of employment growth and these trends suggest that this will continue in the future. Other counties in the CSA experienced high employment growth during this period. In addition to Wake, Franklin, Harnett, and Johnston counties also experienced employment growth of 50 percent or more between 1990 and 2015. 23 Vance County is the only county in the CSA region to experience a decline in employment. Lee and Person counties experienced comparatively low growth, 20 percent and 8 percent, respectively. If past employment trends continue, many of the counties in the CSA will continue to experience employment growth. Historic data shows a pattern of employment growth in the CSA region between 1990 and 2015. Historic trends concentrate employment growth in Wake County. Other counties with sustained employment growth include Harnett, Johnston, and Franklin. These trends have continued over 25 years and there is no evidence indicating these trends will change. FLUSA Trends The North Carolina Department of Commerce releases employment data at the county level, therefore the employment data cannot be aggregated for the Census regions created for this memo. However, the three FLUSA counties, Harnett, Johnston, and Wake, had the highest percent job growth within the CSA between 1990 and 2015. This suggests continued population growth in the region. 24 Figure 9: Regional Average Annual Employment 1990 Ora�nge Chath�am Person Granvill Vance 2000 � ' 158 501 r Orange ; � Franklin �J� _ 1 B 401 ��rham � �: �' �� � � �. Chatham Lee � � izi Harnett � @, Jah nston Granvi�i Var�ce v�, � �� Franklin ��rharx� ,-��J,r �o m' � '�;p ._ � - �- %� Q�' �?sa1 f" _ _''-� ,�--- Wake � ' �ohnstoc� Lee � j izi Harnett 40 25 Complete 54�: Regional Demographies Total Emplo�Tmer�t �hange Intersta�es /�' US Routes � FLUSA Boundary 0 Cour��y Boundary Total Employment 15,653 - 25,aoa 25,001 - 50,OOQ 50,001 - 100,flOQ � 100,001 - 250,(700 i ��o,oQ� - �� �,aoo N N'� E 0 20 40 I i I i I Miles INTERNpTIOMAL Educational At�tainment Regional Trends Educational attainment is a notable feature in the region as a whole, and particularly in those counties where major universities are located. The measure of educational attainment is the percentage of the population aged 25 or over with a Bachelor's degree or higher. North Carolina's statewide average for this statistic was 28 percent in 2014. Within the CSA, in Chatham, Durham and Wake counties, 56 percent, 46 percent, and 48 percent of their respective populations met this benchmark of educational attainment in 2014. While the major universities in the CSA are the University of North Carolina at Chapel Hill, Duke University, and North Carolina State University, other universities in the CSA include North Carolina Central University, Shaw University, Meredith University, Saint Augustine's University, William Peace University, Barton College, Campbell University, and North Carolina Wesleyan College. FLUSA Trends Within the FLUSA counties, Harnett and Johnston Counties fall below the statewide average, while Wake County is well above the statewide and regional averages. All of the CSA counties have seen improvement in Educational Attainment since 1990, again, with the highest results in the three counties that host major universities. A more granular look at educational attainment for the FLUSA area shows that it falls below the overall Wake County average, but well above the Harnett and Johnston County averages, based on data from the 2014 American Communities Survey. Table 11: Educational Attainment Trends Harnett � Johnston Wake � FLUSA 10 11 35 I Chatham Zp Durham 33 Franklin 9 Granville 10 Lee 14 Orange 46 Person g Vance � 9 FLUSA Counties 13 19 16 20 44 � 48 36 Remaining CSA Counties 28 I 40 � 13 13 17 52 10 11 � Change 1990-2014 +9 � +9 +13 � N/A All CSA Counties 27 34 I 40 I + 13 North Carolina 17 � 22 � 2g � +11 Sources: US Decennial Census, 1990, 2000, Summary Table 3; US Census 2014 American Community Survey, Five Year, Table 51501 26 1f IR-�i'. .� �.���- Regional Trends Median income varies greatly throughout the region. However, most counties in the CSA experienced high growth in median household income between 1990 and 2014, correlating with the population growth during this time. During the 2010 Decennial Census, the Census Bureau shifted median income data from the Decennial Census to the American Community Survey. Therefore, the period for median income changed from 1990-2010 to 1990-2014. As shown in Table 12, Wake, Orange, and Chatham counties had the highest median household incomes in 2014, while Vance County had the lowest median household income of any CSA county (Table 12). Over 24 years, the Harnett County median income grew by 104 percent. However, Wake County had the highest median household income in the CSA during each reporting period. Table 12: Median Income Growth FLUSA Counties Harnett $21,743 $35,105 $44,417 $22,674 Johnston $25,169 $40,872 $49,799 $24,630 Wake $36,222 $54,988 $66,579 $30,357 Remaining CSA Counties 104 98 84 Chatham $28,539 $42,851 $57,140 $2g�601 100 Durham $30,526 $43,337 $52,038 $21,512 70 Franklin $25,049 $38,968 $42,763 $17,714 71 Granville $26,488 $39,965 $49,655 $23,167 87 Lee $26,419 $38,900 $46,309 $19,890 75 Orange $29,968 $42,372 $57,261 $27,293 91 Person $25,625 $37,159 $43,381 $17,756 69 Vance $21,555 $31,301 $34,075 $12,520 58 Source: US Decennial Census, 1990, 2000, Summary File 3; Table P053; US Census 2014 American Community Survey, Five Year, Table 619013 Notes: Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010. 1) Measured in 1989 US dollars. 2) Measured in 1999 US Dollars. 3) Measured in 2014 inflation-adjusted dollars FLUSA Trencls The US Census Bureau calculates median income by census tract. Since the sub-county regions are an aggregation of census block groups (a smaller geography within the census tract geography) and income is a median value, calculating an average is not possible. However, Harnett and Johnston counties, within the FLUSA, are among the top three counties in the CSA in median income growth between 1990 and 2014). In the CSA, Wake County had the largest median household income increase from 1990 to 2014 at $30,357. In addition to Median Income, it is useful to examine Median Earnings by Level of Education for further insight into the income trends affecting the FLUSA. These data, shown in Table 13, demonstrate that 27 residents of all the FLUSA jurisdictions who have a Bachelor's degree have markedly higher incomes, with an additional earnings premium for those with graduate or professional degrees. This phenomenon is most pronounced in Wake County, where nearly 1 in 5 residents 25 or over have a graduate or professional degree, and the difference in earnings is over $32,000 compared to those without a Bachelor's degree, and over $15,000 compared to those with a Bachelor's degree. Tal�le 13: Medran Ec�rnir�gs by Ed�ca'rrcii�rl Attcinn�enr, FI_[JSA Counties, 201�?�* Harnett Median Percent of I Earnings County Population 25+ Johnston Median Percent of Earnings County Population 25+ Totalfor Adult Population $31,348 100 $32,965 25 Years+: Less than high school $15,971 16 $ 19,469 graduate High school graduate/ $27,670 31 $ 30,124 equivalency Some college or associate's $31,997 34 $ 34,154 degree Bachelor's degree $36,439 12 $46,450 Graduate or professional $56,415 7 $51,073 degree US Census 2014 American Community Survey, One-Year Average, Table 51501 Note: Table results may not add up to 100 percent due to rounding 28 Wake Median Percent of Earnings County Population 25+ 100 $40,821 100 13 $16,970 S 31 $27,175 17 36 $34,881 27 15 $51,365 31 5 $66,976 18 Figure 10: Regional Median Income Per 199a Orange 70 � �� Chatham sa 501 � l�ee J GranvilV Vance - ii ,sa � � r-.�--. R�� �rar�klin � 4ot fhBRl ��� FD �"'�,N' �+' \� .�i 2fi4 - .J.�. VWake Ham�tt � Jahnston 29 Car��l��� 54�: l��g�a�nal I� emograp�h�cs H€�usehold I�.come �hamge c� Intersta�es �� US ROUtBS � F�USA Bnurodary � Gounty Bounc�ar�r I�edian Household I�comme ���,���.a� - �z�,00c�.Qo �z�,oao.o� � ���,00�.oc� � $3�,040.Q1 - $45,00(�,DO - �45,OU4.01 � $55,DO�.a�d � $�a,Q(?0.01 � $67,00�.0�1 � w�e s Q �0 Q� � 1 � 1 � Miles I�ITERNATI�WAL School Quality The quality of a school district is an important factor driving household location decisions and an indicative factor of growth in a region. Jack Dougherty, an associate professor of Educational Studies at Trinity College in Hartford, Connecticut, researched how public school quality helps to drive suburban growth: ..."shopping for schools" clearly became an important family strategy for upward mobility, as higher-salary positions increasingly depended on educational credentials, which in turn relied on the status of one's public school system. During the course of the twentieth century, suburban families became more conscious of this equation: buying a home in the "right" neighborhood in order to send their children to a"good" public school, would increase their odds of being accepted to a"top-ranked" college, and help them to land the "perfect" job.6 Other researchers have shown the strong correlation between school district quality and the value of housing. This is revealed in the high demand for housing in good school districts. Theodore Crone, an Economist with the Federal Reserve Bank of Philadelphia, noted, "Home buyers seem to evaluate the quality of public education at the district level."' Finally, other researchers have noted that "[i]n towns where it is easy to build more housing, better quality schools do not lead to higher property values. Instead, they lead to more real estate development." Based on this assessment, areas that are perceived to have higher quality schools would be expected to have increased development as a result. Since most school districts in North Carolina conform to county boundaries, homebuyers with school- aged children are therefore likely to consider school quality by county when choosing a residence to rent or buy.$ Additional research indicates that higher test scores are a factor that affects housing prices and can increase housing costs in an area or make the area more desirable for future development. In her research, Sandra E. Black found that housing prices rise 2.5 percent for a 5 percent increase in test scores.9 A study looking at the relationship between test scores and residential housing prices in North Carolina determined that the housing market places higher values on property in school districts with higher test scores at an average of 3 percent to 4 percent higher than a property with average test scores. Test scores play a pivotal role in the perception of school quality and have a strong influence on housing value.lo Regional Trends As with many of the factors discussed in this document, four-year graduation rates by school system vary throughout the region, as shown in Table 14. Lee County Schools had the highest graduation rate in the region, followed closely by Johnston, Orange, Chatham and Wake. School systems with the lowest four-year graduation rate are Person and Vance counties. 6 Dougherty, Jack. "Shopping for Schools: How Public Education and Private Housing Shaped Suburban Connecticut." Journal of Urban History 28, no. 2(March 2012): 205-224. � Crone, Theodore M. "Capitalization of the Quality of Local Public Schools: What Do Home Buyers Value?" Working Paper No. 06-15, Federal Reserve Bank of Philadelphia. August 2006. 8 Black, Sandra E. "Do Better Schools Matter? Parental Valuation of Elementary Education." The Quarterly Journal of Economics, Vol. 114, No. 2(May 1999): 577-599. 9 Martinez, Erika. "Do Housing Prices Account for School Accountability?" Duke University, November 2010. 10 NC Department of Public Instruction, Accountability Services Division. lune 4, 2008. 30 Table 14: Four-Vear Graduation Rate by School System �e .e • FLUSA Counties Harnett County Schools 81.5 Johnston County Schools 88.8 Wake County Schools 86.1 Remaining CSA Counties Chatham County Schools 87.3 Durham Public Schools 80.7 Franklin County Schools 82.6 Granville County Schools 83.8 Lee County Schools 89.1 Orange County Schools 88.0 Person County Schools 78.9 Vance County Schools 77.5 Regional Average 84.0 Sources: North Carolina State Board of Education, Accountability Services Division, 2014-2015 Note: Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010 In North Carolina, state end-of-grade (EOG) tests are administered to students in third through eighth grade and measure proficiency in a variety of core subjects. Students must pass with a"proficient" or better to move to the next grade level. The percent of students scoring proficient or above on EOG exams is a cumulative score of English language arts (ELA), mathematics, and science. The State Board of Education defines proficient as a score of three or above on the EOG exams. Table 15: Percentage Average Statewide Test Scares Proficient or Above .. � . . . ... • • . .�- Math and Reading Testing, Grades 3-8 FLUSA Counties Harnett County Schools 45 Johnston County Schools 58 Wake County Schools 66 Remaining CSA Counties Chatham County Schools 46 Durham Public Schools 43 Franklin County Schools 49 Granville County Schools 43 Lee County Schools 51 Orange County Schools 60 Person County Schools � 54 Vance County Schools 43 Regional Average 52 Sources: North Carolina State Board of Education, Accountability Services Division, 2014-2015 Note: Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010 31 Wake and Orange counties have comparatively higher test scores in the region for most subjects and age groups. Wake County scores were between 14 percent higher than the regional average across grade levels (see Table 15). Other school systems with comparatively high test scores are Johnston and Person counties. Another educational metric that is commonly referenced as an influence on location decisions is the Scholastic Aptitude Test (SAT) composite score (combined scores of math, critical reading and writing). However, the SAT score only represents college bound students, so it is not a comprehensive score representative of all students in the district. As shown in Table 16 and Figure 11, among the 11 CSA counties, Wake County schools had the highest average SAT score in 2015. The average SAT score for schools in the region was 1,415 (a perfect score being 2400). SAT scores for the Wake County School District were 11 percent higher than the regional average. Other counties in the CSA with average scores higher than the CSA average were Orange and Johnston counties. FLUSA Counties Harnett County Schools 423 39 467 465 Johnston County Schools 892 41 500 497 Wake County Schools 6,400 67 540 525 Remaining CSA Counties Chatham County Schools 337 65 481 474 Durham Public Schools 1,177 60 469 476 Franklin County Schools 212 40 476 477 Granville County Schools 245 46 485 474 Lee County Schools 223 37 482 474 Orange County Schools 307 62 522 519 Person County Schools 114 44 451 437 Vance County Schools 234 57 427 424 Regional Average - 51 482 477 Sources: North Carolina State Board of Education, Accountability Services Division, SAT Report 2015 Note: "%o Tested" refers to the percentage of students in the school district that took the SAT in 2015 442 1374 � 473 1470 504 1569 457 453 457 445 449 498 427 410 456 � 1412 1398 1410 1404 1405 1539 1315 1261 1415 School quality is an important factor for households in making location decisions, particularly for households with children. Based on school quality indicators, such as four-year graduation rates, SAT scores, and state EOG test scores, the counties that would be most desirable for homebuyers are Wake, Orange, and Johnston. If these trends continue, these areas would be more likely to attract new households and new development, thus more likely to experience higher population growth than the other counties in the region. 32 Figure 11: Average Composite SAT Score by High School for CSA Region ��m�lete �4�: Regio�.al I��magra��.ics S��T Sc��es School Level SA7 Scores � 1146 - 1230 • 1231 - 135� � 1351 - 145� � 1451 - 1 �50 * 15�1 - �719 Onterstates �� �1S R�utes � �LU�A Boundacy � Ct�a�nty Bounda�r 33 M w�e � a io za I s o � i �t� i��. IN4@RN�ATIONAL FLUSA Trends As school systems in North Carolina are organized by county, the educational data is presented by county. Data on school quality is presented at the county or school district level or the individual school level, not at a Census geography level. Harnett County Schools have the lowest four-year graduation rate, with almost 82 percent of students graduating high school in four years (see Table 14). Overall, Johnston County has the highest four-year high school graduation rate, at nearly 89 percent. Wake County Schools have the second highest graduation rate, with 86 percent of students graduating high school in four years. EOG scores for school systems with boundaries that overlap the FLUSA are presented in Table 15. Harnett County ranks below the CSA average while Wake and Johnston are above the CSA average. In Figure 12 average SAT test scores are depicted by high school location. The schools with the highest average SAT scores are in western and central Wake County. Scores are lowest in southern and eastern Wake County. Johnston County Schools had the second highest combined SAT score of the FLUSA counties (see Table 16). Scores are highest in central and western Johnston County. Harnett County Schools had the lowest average combined SAT score of the FLUSA. Average combined SAT scores in Harnett County are almost 200 points lower than Wake County Schools and 100 points lower than Johnston County schools. Scores at high schools in northern and southern Harnett County are the highest in that school system. There are clear distinctions in school quality of the FLUSA counties. Wake County Schools SAT scores and state EOG test scores are the highest of the FLUSA counties. However, Johnston County Schools had the highest high school graduation rate in the FLUSA, with Wake County Schools and Harnett County Schools following behind. Within the FLUSA counties, the data suggests that Johnston and Wake counties have the more desirable school systems for potential homebuyers, which suggests these counties would be more likely for future development. 34 Figure 12: SAT Scores by High School in the FLUSA Counties 35 Comp�ete 5�0 �ducat�on S1�.T' Scores Interstat�s �� US Rout�es � County Boundarues � F�USA Boundary School Level SAT Scores • 1317 - 1352 • 1353 - �425 • 1426 - 1496 � 1497 - 1589 . 1590 - 1719 Mf� ,v 4 E 5 0 1(1 2a Miles I M T E R N A T I 0 N A L Average Commute Regional Trends Convenient access to jobs is another important factor in household location decisions within a region. Areas with shorter commutes may be more attractive for potential homebuyers, as workers will spend less time commuting. However, regional growth patterns in most metropolitan areas do not indicate that commute times are a primary driver of location decisions. While it may seem counter-intuitive that households would choose to live where commute times are longer, research suggests that within a reasonable range of commute time, households will choose locations based more on other preferences, such as school quality, neighborhood quality or other factors. In their summary of research on the impacts of transportation on land use, the National Research Council noted the following: "Research on commuting patterns within the current distribution pattern of jobs and residences in the Los Angeles metropolitan area, however, indicates that commuting trips are two-thirds greater than would be required if workers were located in neighborhoods that minimized their commutes (Small and Song 1992). This indicates that a key assumption of location theory does not hold in practice. The excess commuting that occurs may be explained by preferences for neighborhoods with low crime rates or amenities such as schools; the difficulty of minimizing commutes for both workers in dual worker households; and other influences, such as racial discrimination (Giuliano and Small 1993; Mills 1994),11'. The Census Bureau tracks a variety of information about trips to and from work. The comparisons among counties in the region are revealing. Due to changes in reporting for the 2010 Census, the Census Bureau began releasing commute information in the American Community Survey. Therefore, reporting years for commute times are 1990, 2000, and 2014. Between 1990 and 2000, the average commute time for residents in CSA counties increased by 4.8 minutes, and remained relatively stable between 2000 and 2014 (see Table 17 and Figure 13). Overall, between 1990 and 2014 commute times in the CSA increased by 19 percent. Commutes in every CSA county increased from 1990 to 2014. However, commute times decreased between 2000 and 2014 in Harnett, Johnston, Wake, Franklin and Lee Counties. Overall, Franklin County reported the smallest change in commute time between 1990 and 2014. Vance and Granville counties experienced the greatest increases in commute times during this period. In 2014, commute times in five counties are below the regional average of 28.2 minutes. These counties are Durham, Lee, Orange, Vance, and Wake. Proximity to the Raleigh urban core and shorter commutes than the regional average could potentially increase the desirability of Wake County for potential homebuyers. 11 National Research Council 1995 36 Table 17: Averaqe Commute Times in Reqional Counties Average % Average % Average % � Travel Time Difference Travel Time Difference Travel Difference • to Work from 1990 to Work from 2000 Time to from 2014 ••� (Min) Regional (Min) Regional Work Regional � � Average Average (Min) Average FLUSA Counties Harnett 25.3 7 30.8 10 30.2 7 � 25 Johnston 26.5 12 32.3 15 31.2 10 18 Wake 22.3 -6 26.4 -6 25.7 -9 15 Remaining CSA Counties Chatham 24.4 3 28.9 3 29.3 4 � 20 Durham 20.5 -14 23.0 -18 23.6 -16 15 Franklin 29.4 24 34.8 24 32.1 14 � 9 � Granville 23.9 1 28.6 2 30.5 8 � 28 Lee 22.2 -7 25.8 -8 25.7 -9 16 Orange 21.2 -10 23.7 -16 24.3 -14 14 Person 26.0 11 30.9 10 32.6 16 26 Vance 19.2 -19 24.1 -14 25.0 -11 30 Regional 23.3 - 28.1 - 28.2 - 19 Average Source: US Decennial Census, 2000; US Census 2014 American Community Survey, Five-Year Average, Table 808303 Note: Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010. 2) Census data presented in terms of "mean" travel is referred to as "average" in this table. 37 Figure 13: Regional Changes in Average Commute Time 38 �amplete 540: Regional Demagraphics Averag� Camrnute Change I nte cstates �— US Routes � FLUSA Boundary � Courtty Boundary Average Commute 19.2-22NIin 22 - 24.9 Min 25 - 27.9 Min � 28 - 30.9 Min i 31 - 34.8 Min �n N Y f 0 20 40 I i l e I hriiles INTERNATIONAL FLUSA Trends Average commute time is an indicator of potential growth, as a short commute is often attractive to potential homebuyers. Commutes at the sub-county level may show the specific areas of potential growth within the FLUSA. Every Census region experienced an increase in average commute time between 1990 and 2014 (see Table 18 and Figure 14). Of the three FLUSA counties, Harnett County had the second longest average commute. Overall, the average commute time in the county was 8 percent longer than the CSA commute in 2014. Within Harnett County, Zone H1 had the longest commute time from 2000 through 2014. In 2014, the average commute in Zone H1 was 16 percent longer than the regional average. Zone H2 had the shortest average commute in 2014, with a commute time five percent shorter than the regional average. Johnston County had the longest average commute of the FLUSA counties, with an average commute that was 11 percent longer than the regional average in 2014. FLUSA Zones J1 and J5 had commutes that were consistently longer than the average regional commute in 1990, 2000, and 2014. Average commute times in Wake County were the shortest within Zone W1. This is the urban core of Raleigh, therefore, commutes would be expected to be short when compared to other parts of the region. Commute times are also consistently short in Zone W2, Zone W3, and Zone W5, which surround the urban core. Census regions further from Zone W1 and the City of Raleigh urban core had commute times that are longer than the regional averages in 1990, 2000, and 2010. These zones, Zone W6, Zone W7, and Zone W8 had average commute times that were between 7 and 13 percent longer than the CSA average commute time. Zone 4, which is also in the FLUSA, had commute times that were longer than the CSA average in 1990 and 2000, but less than the CSA average in 2014. 39 Table 18: Averaqe Commute Time in FLUSA Counties Average % Average % Travel Difference Travel Difference Time to from 1990 Time to from 2000 Work Regional Work Regional (Min) Average (Min) Average FLUSA Counties Average % Travel Difference Time to from 2014 Work Regional (Min) Average Harnett 25.3 9 30.8 10 30.2 8 19 Zone H1 27.1 16 32.7 16 32.6 16 21 Zone H2 22.0 -6 27.0 -4 26.7 -5 22 Zone H3 25.6 10 30.5 9 31.6 13 23 Zone H4 28.2 21 32.5 16 29.9 6 6 Johnston 26.5 14 32.3 15 31.2 11 18 Zone J1 25.8 11 32.8 17 30.8 10 20 Zone J2 31.3 34 36.4 30 35.0 24 12 � Zone J3 24.9 7 29.2 4 28.8 3 16 Zone J4 24.8 6 28.5 <1 26.7 -5 8 Zone J5 27.6 19 33.0 17 32.0 14 16 � Wake 22.3 -4 26.4 -6 25.7 -8 15 Zone W1 19.3 -17 21.7 -23 21.8 -22 13 Zone W2 21.1 -9 24.4 -13 23.5 -16 11 r Zone W3 22.3 -4 25.6 -9 25.2 -10 13 I Zone W4 23.8 2 29.1 4 26.7 -5 12 Zone W5 21.5 -8 24.5 -13 23.8 -15 10 Zone W6 26.0 12 31.2 11 30.4 8 17 Zone W7 26.6 14 30.5 9 28.8 3 8 Zone W8 26.3 13 34.0 21 30.1 7 14 CSA 23.3 28.1 28.2 19 Regional Source: US Decennial Census, 2000; US Census 2014 American Community Survey, Five-Year Average, Table B08303 Notes: 1) Raleigh-Durham-Chapel Hill, NC CSA Counties, 1990-2010. 2) FLUSA Census regions are shown in bold. Average commute times have risen between 1990 and 2014 in every Census region in the FLUSA. While the average commute time for each zone rose, trends show longer commute times in Johnston and Harnett counties and shorter commute times in Wake. This suggests that Wake County may be a more desirable location for potential homebuyers. 40 Figure 14: Regional Changes in Average Commute Time 41 mpXete 540 Demograph�.cs �-�verage Comr�ute Change Inters�ates �- US R�outes � County Boundaries � FLUSA Boundary Census Region Bouo�daries Census Region Bau�daries Census Regior�s Average Commute 19 - 22 Min. 23 - 25 Min. �� �6 - �8 Min. i 29 - 31 Min. � 32 - 35 Min. Census glock Group data was aggregated into Census Regions for the purposes af this analysis. Census Regions were created by combining 1990, 2000, and 2D10 Census �lo�k Groups. The regions were created to follow Block Group Boundaries that did not change over the 20 year period. N W�E 1� s Q �9 24 I i I i I Miles I N T F R N A T I 0 N A L Regional Economic Drivers and Re�ated Trends A few specific trends that describe the region's economic drivers and relate to additional growth dynamics add further insight into the growth history and outlook of the Research Triangle Region. Research Triangle Parl< Universities are a source of innovation. The focus in the Research Triangle Region on partnership between Universities, public sector research entities, and private sector innovators has led to, "... sharec resources, groundbreaking research, and graduates working at the forefront of their fields."12 The idea of harnessing the opportunities presented by the three founding universities of RTP — NC State University, Duke University, and UNC-Chapel Hill — to attract private and public sector research jobs has been a key driver of regional economic growth and success. Results include high educational attainment of regional residents, higher earnings than state and national averages, and low unemployment (as documented elsewhere in this memo). In Research Triangle Park, biotechnology and information technology are major industries within RTP tenants, along with business, financial and insurance services, and specialized firms in agricultural biotechnology, as well as instruments and advanced materials. Over 250 businesses employing over 50,000 people are located in RTP, the nation's largest research park. These RTP businesses have received over 3,000 patents for their research and development work since 1970, and have generated 245 company start-ups. 13 Looking at Research Triangle Park and Wake County together, the major employers include multiple healthcare systems, the State of North Carolina, IBM Corporation and Universities (Table 19). Table 19: Employers with 2,000 or more Employees in Wake County and Research Triangle Park Duke University and Health System State of North Carolina Wake County Public School System IBM Corporation North Carolina State University WakeMed Health & Hospitals Rex Healthcare SAS Institute, Inc. GlaxoSmithKline Lenovo Fidelity Investments North Carolina Department of Health & Human Services Sensus City of Raleigh Conduent Inc. Duke Energy QuintileslMS Spectraforce Technologies Inc. 1z The Research Triangle Park, 2017. 13 Ibid 42 36,004 24,083 18,554 10,000 9,069 8, 943 5,700 5,616 4,950 4,200 4,000 3,800 3,691 3,673 3,300 2,700 2,600 2,600 MetLife Wake Technical Community College Wells Fargo RTI International First Citizens Bank Grifols Pharmaceutical Product Development, Inc. (PPD) Verizon Business Source: Wake County Economic Development. 2017. Wal<e County Trends 2,600 2,547 Z,300 2,276 2,026 2,000 2,000 2,000 As the major source of employment in combination with RTP, and as the jurisdiction comprising most of the FLUSA, Wake County's growth trends provide indicators of both the impetus for growth and the regional growth pressures affecting the FLUSA. For example, a review of Wake County's 2016 report on Trends and Outlook14, based on US Census, other national, and county data, provides the following highlights: • From 2010 to 2015, Wake County was the second fastest-growing county over 1 million in population in the US (14 percent), second to Travis County in the Austin, Texas region (15 percent), and ahead of Mecklenburg County, North Carolina (12 percent). • After accounting for births and deaths, Wake County saw 43 net migrants daily, on average, from 2010 to 2015. Of these migrants to the county, on average, 32 arrived from other U.S. jurisdictions and 11 arrived from other countries. • In 2014, the percentage of Wake County adult residents with a bachelor's degree or higher ranked 5th nationally among 36 peer counties with similar population size and growth rate. • Unemployment among Wake County residents has been consistently below state and national averages (see Figure 15). • In 2014, the top occupation in Wake County was educational services, health care and social assistance, accounting for 20.9 percent of employed residents. The second-highest occupation at 17.8 percent was professional, scientific, management and administrative. • A heat map of 2015 residential and commercial building permits shows the major concentration of development activity in a band from RTP to Fuquay Varina in western and southern Wake County. • Starting in 2012, there has been a surge in multifamily housing permits in Wake County. In 2016, 37 percent of Wake County households rented, and a substantially higher percentage of renters than homeowners spend more than 30 percent of their income on housing. 14 Wake County, 2016. 43 Figure 15: Wake County, State of North Carolina and U.S. Unemployment Rates, 2007 to 2015 12.0 10.0 8.0 6.0 4.7 i�6 4.0 3.5 2.0 0.0 2007 10.9 8.3 ' 2008 2009 2010 2011 2012 2013 Wake #—NC —�USA Source: Bureau of Labor Statistics, Department of Labor 2014 5.8 5.3 4.7 2015 A final trend that has relevance to Complete 540 is the trend in daily Vehicle Miles Traveled (VMT) in Wake County. The VMT data show large increases from 2000 to 2007 at the county, state, and national levels (Table 20). However, between 2007 and 2014, North Carolina VMT increased by only 4 percent and national VMT actually decreased slightly. During the same time period however, Wake County saw a 25 percent increase in VMT, and a 65 percent increase from 2000-2014. Table 20: Vehide Miles Traveled Data for Wake County, North Carolina, and the U.S. Wake County 6,203 8,219 10,259 33 NC 89,504 103,598 108,012 16 USA 2,767,363 3,049,027 3,040,220 10 Sources: USDOT FHWA Highway Statistics Table VM-2; NCDOT North Carolina Traffic Crash Facts 25 4 0 65 21 10 Conclusion Growth patterns and trends at both the CSA and FLUSA level show a pattern of sustained population and employment growth and increases in population density in addition to a concentration of recent growth within Wake County. The other FLUSA counties (Harnett and Johnston) also show strong growth (based on Census data) and are projected to increase in population through 2035. Growth indicators at the CSA level, namely employment, average household size, educational attainment, median income, and school 44 quality indicate that growth will very likely continue in the counties comprising the project FLUSA. Analysis of population, population density, average household size, school quality, and commute in the FLUSA counties at the sub-county level further indicates growth is likely within the FLUSA. Based on population trends, employment, median income, school quality and commute times, Wake County will most likely continue to capture a high amount of growth in the future. Wake County leads in these indicators, and population forecasts suggest that past population trends and regional growth dynamics will continue into the future. Within FLUSA counties, growth indicators suggest that much of the future population growth will occur within Wake County. Population densities are still relatively low outside of the urban core of the City of Raleigh, leaving ample room for additional growth in the suburban and rural portions of the county. With higher median household income and a greater perceived school quality than neighboring counties, many new residents and potential homebuyers would be attracted to Wake County. School quality appears to be highest in central, western and northern Wake. Northern Harnett County and eastern Johnston County appear to have some positive growth factors, particularly the relatively low population densities and increases in employment and median income. Johnston County appears to have a higher quality school district, and would therefore be more likely to attract growth, relative to Harnett County. Analysis of these growth patterns and trends indicates that the CSA region will continue to grow and that a sizeable portion of that growth is likely to occur within Wake County. The FLUSA area has both positive and negative indicators for growth compared to the other zones in the three-county study area. In particular, population density is relatively low in the FLUSA, suggesting that there may be land available for development. Indicators of school quality, however, is somewhat lower in the FLUSA than in other parts of Wake County suggesting that other parts of Wake may have higher relative growth pressures in the future. Additional housing trends in Wake County indicate that 37% of homeowners rent, substantially more renters pay more than a third of their income for housing, and there has been a surge in multifamily home construction since 2012. Together, these trends suggest there may be a market for higher-density housing in more affordable areas of the region such as portions of the FLUSA. Underscoring the evident growth trends in the region, and in Wake County in particular, are a set of economic drivers that point to sustained growth. 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