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36 Columbus State University is a pillar of the local economy that is a major source of economic growth. The economic impact of Columbus State University on the Columbus MSA increased from 2,620 jobs in the 2012 fiscal year to 3,257 jobs in the 2017 fiscal year. In 2019, CSU will continue to grow as will its economic impact. Although the housing bust was somewhat less severe in Columbus than for the state as a whole, it lasted much longer. In Columbus, single-family homebuilding remained in recession through 2016 whereas both the state and the nation saw significantly higher homebuilding activity in each of the last 8 years (2011-18). Due to recent and projected job growth, a very modest upturn in single-family homebuilding in Columbus began in 2017-18. The homebuilding industry will see very modest gains in 2019. The shift of homebuilding from a significant economic headwind into a slight tailwind is a notable development. Regional economic growth is difficult to sustain without the participation of the housing industry. The home price decline was not too severe in Columbus, but the home price recovery has been weak. Single-family home prices peaked in the first quarter of 2008 and bottomed out in the second quarter of 2014. From peak to trough, single family home prices declined by 16 percent in the Columbus MSA. The decline in statewide home prices was much worse. In Columbus, home prices are recovering very slowly, however. Locally home prices began to recover in mid-2014, but mostly due to job losses home prices fell again in mid-2015. In Spring 2016, home prices turned up again. As of the third quarter of 2018, single-family home prices in the Columbus MSA were still 8 percent below their peak level. The Columbus MSA's housing prices were only 1 percent higher in the third quarter of 2018 than in the third quarter of 2017. In 2019, both home prices and new home construction activity will increase modestly. The improved housing situation reflects the 700 jobs added in 2017, the 1,200 jobs added in 2018, and the 1,000 jobs expected in 2019, growth at Fort Benning, and still affordable mortgage rates. Sustained increases in home prices will boost small business activity in Columbus. That is because business expansion and formation requires cash and the typical entrepreneur obtains the funds needed to start, or expand, their business by borrowing, using their home as collateral. Small business will contribute more to Columbus' growth in 2019 than in recent years. Gainesville Gainesville's recent economic performance is outstanding: 5.3 percent job growth in 2015, 3.2 percent job growth in 2016, 3.5 percent job growth in 2017, and an estimated 3.6 percent job growth in 2018. Even better, the area's economic prospects are excellent, but job growth will slow. In 2019, Gainesville-Hall County will add about 2,000 jobs – a 2.2 percent gain. Over 2018-19, Gainesville will be the state's fastest growing metro area. Top area's employers include Northeast Georgia Health Systems, Fieldale Farms Inc., Pilgrims Pride Poultry Co, Victory Processing, and Kubota Manufacturing of America Corp. The leading high-wage industries include offices of physicians, machinery manufacturing, grocery merchant wholesalers, and nondepository credit intermediation. Productivity per worker is above the state average. The Gainesville MSA consists of a single county – Hall County. Gainesville's recent and continued success reflects many factors, including (1) the large number of expansion projects announced over the last 5 years; (2) a manufacturing renaissance; (3) growth of the medical, educational, and tourism industries; (4) favorable demographics; (5) more leverage from the housing recovery; and (6) strong economic growth in neighboring counties, especially Forsyth, North Fulton, and Gwinnett. The area is an increasingly popular bedroom community for the Atlanta MSA. The cost of living and doing business are below average, migration trends are very favorable, and the housing market is strengthening. Weaknesses include low per capita incomes and the lack of high- wage jobs. The area's industrial diversity is low, but that is not unusual for a metropolitan area that consists of a single county. Low industrial diversity can result in relatively high employment volatility, however. Gainesville's economic developers have done an outstanding job encouraging existing businesses to expand locally as well as recruiting new companies. Fox Factory Holding, Corp, VDL Group, Elastron, Kubota, Mars Wrigley Confectionary, Jinsung TEC, and Mincey Marble are good examples of manufacturers that decided to expand or locate