2023 Insights through Q3

The most recent data shows that the first three quarters of 2023 were prosperous for the Saratoga County economy - with occupancy taxes at a historic high, sales tax collections breaking records, a growing labor force and residential real estate prices on the rise.

Read more about these exciting trends below!

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Saratoga County Hotels Enjoyed a Successful Summer Season

Through the first three quarters of 2023, Saratoga County collected a record $897,003 in occupancy taxes, up 8.4% versus the $826,784 collected during the same time frame in 2022. This increase is driven by the increase in revenue derived by lodging facilities across the county as RevPAR is up 6.5% from $103.95 year-to-date in 2022 to $110.77 in 2023. It is interesting to note that year-to-date occupancy is up less than one percent as is demand for hotel rooms while the average daily rate is up 5.8% and overall revenue is up 6.1%.

Record-breaking Sales Tax Collections Continue through Three Quarters in Saratoga County

Saratoga County collected a record $127.85 million in sales taxes through the first three quarters of the year, up 6.8% versus the $119.62 million collected in the same time a year ago. Similarly, the City of Saratoga Springs collected $13.6 million in sales taxes through the first three quarters of 2023, up 6.25% versus the $12.8 million in 2022. The County and City saw increases in sales tax growth in all three quarters of 2023 versus 2022 as our local economy continues to perform well.

Labor Force Shows Continued Growth in Saratoga County

As of September 2023, the Saratoga County labor force totaled 125,300, with 122,100 residents employed and 3,200 unemployed. The labor force is up 2.5% versus the same time in 2022 with 2,900 more residents employed this year and 300 more unemployed as of September 2023 versus 2022. The County’s unemployment rate remains low at 2.6% as of September 2023, although this is higher than the 2.4% rate in September 2022.

Median Home Sales Prices Continue to Rise in Saratoga County

The median sales price of a home in Saratoga County through the first three quarters of 2023 is $410,000, up 5.1% versus the $390,000 median sales price in 2022. While the sales prices is up, the number of listings is down 14.3 percent and the number of closed sales are down 22.5% during this time in 2023 versus 2022. The same is true in Saratoga Springs where there have been 80 fewer sales recorded in the first three quarters of 2023 versus 2022, but the median sales price year to date has risen to $620,000 according to the Greater Capital Association of REALTORS.

Check out last month's insights

The economy grew 4.9% annualized in Q3 as consumer demand for goods rebounded from the previous quarter and the demand for services was the hottest since 2021. Investment in equipment shrank as the high cost of capital put a strain on businesses. Rebuilding of inventories, a highly volatile component of the economy, added 1.3 percentage points to headline growth and will not likely add to growth in the coming quarter given the nature of inventory management.

Real consumer spending rose 0.4% month over month, a rebound from August; whereas, real disposable income fell for the third consecutive month. Consumers are spending more than they are earning. Adjusted for inflation, consumers increased spending in each of the last three months while real disposable income fell over the same period. Clearly, this can’t last much longer. Auto incentives brought in buyers last month as real spending on goods was driven by spending on autos, both new and used. Not surprisingly, international travel was the largest contributor to the increase in real services spending in September.

Provided by:

Robert Schermerhorn, CFP^®

www.SaratogaRetire.com

(518) 584-2555

18 Division St.-Suite 305, Saratoga Springs, NY 12866

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