News/Blog

October 31, 2024

The value of agriculture in Santa Clara County

By Brittney Sherman

According to Santa Clara County’s latest crop report, nursery crops were the #1 crop in 2023, followed closely by mushroom and lettuce crops. In regard to crop value, nursery crops increased 11% and lettuce crops increased 68%, while cherry and mushroom crops both decreased mainly due to weather, price reductions, and a farm closure. The overall value of Santa Clara County’s 2023 crops came in at $371.5 billion, an increase of nearly 4% year over year.

In addition to generating 1% of the state’s overall agriculture sales, Santa Clara County is also recognized as a leader in sustainable farming practices as displayed in programs like the Morgan Hill Unified School District’s “freight farms,” and Morgan Hill company Anaerobe Systems’ fertilizer and bioenergy fermentation process.

Read the full 2023 Santa Clara County Crop Report HERE.

October 28, 2024

U.S. hotel room rates continue to decline

By Brittney Sherman

Hotels in the U.S. reported year over year decreased occupancy, revenue, and revenue per available room (RevPAR) during third quarter 2024. According to CoStar Analytics, this was the fourth quarter in a row that room rate growth declined and the second lowest overall growth rate, outside of first quarter, since 2021. Luxury and Urban hotels continue to lead room demand, while economy hotels experience losses. International, corporate, and group travel are projected to boost the top 25 markets, however trickling declines are expected to impact most other markets in fourth quarter 2024.

Read the full CoStar Analytics article HERE.

October 25, 2024

2025 Holiday spending forecast

By Brittney Sherman

According to the National Retail Federation, this year U.S. consumers are projected to spend approximately $979.5-$989 billion dollars during the months of November and December. While anticipated sales are up 2.5% year over year, they fall far behind the year over year growth experienced in 2023 (3.9%) and 2022 (4.7%). With five fewer holiday shopping days, in the middle of a presidential election year, retailers are rolling out everything from buy now/pay later options to earlier discounts to new innovative products to drive sales this holiday season.

Read the full article in the Wall Street Journal HERE.

October 22, 2024

Price conscious decorators shift focus to DIY

By Brittney Sherman

Popular arts and craft DIY store Michaels is reaping the rewards, after increasing their Halloween DIY offerings for art, decorations, and costume-making. Shoppers have begun pulling back the reins on spending, most likely due to economic uncertainty and the impending holiday shopping season and are instead focusing on purchasing decoration and clothing kits they can make at home. Let’s see if the DIY trend continues into the Holiday Season.

Read the full article by Modern Retail HERE.

October 18, 2024

2Q24 Sales Tax Report

By Brittney Sherman

Similar to results for the State (-0.6%), the Bay Area (-1.7%), and the County (-1.7%), Morgan Hill’s sales tax revenue continues to yield negative numbers in 2024. For the second quarter in a row the auto and transportation category decreased 9%, a trend experienced throughout the state. In addition, due to a reduction in construction activity and the seasonal nature of business industry sales, Morgan Hill’s Business and Industry category dropped 28%. There were some positive points, with slight growth found in the Restaurant and Hotels, and Fuel and Service Station (2.8%) categories. HdL Company Analysts are projecting additional minor corrections and a rebalancing of sales tax in the final quarter of 2024.

Read the full report HERE.

October 14, 2024

Farmworker Housing Act expanded

By Brittney Sherman

Signed by Governor Newsom on September 24th, 2024, Assembly Bill 3035 expands upon the 2019 Employee Housing Act in two major ways. The first is by expanding the geographic footprint of eligible developments to land in Santa Clara or Santa Cruz County within 15 miles of an area designated by the Department of Conservation as farmland or grazing and which is not connected or adjacent to a site allocated for more than 1/3 industrial use. The second is by increasing the maximum number of units from 36 to 150 for eligible agricultural employee housing developments within the expanded geographic location. AB 3035 will go into effect in 2025 with the aim of streamlining larger farmworker housing developments over a larger geographical boundary.

Learn more about AB3035 HERE.