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Consultant says Needles population stabilizing but grocery, housing markets remain constrained

September 07, 2024 | Needles City, San Bernardino County, California


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Consultant says Needles population stabilizing but grocery, housing markets remain constrained
Michael Bracken, an economic development consultant, told the Needles City Council the city’s population decline has stopped and some education measures have improved, but local incomes remain far below national medians and retail and housing markets face structural constraints.

"Economic development is basically anything that increases the overall value of community," Bracken said, framing 'wealth' broadly to include partners, restaurants, hotels and infrastructure. He told the council the median household income in the city remains well below national figures and that while some fast‑food and independent grocers may consider projects, mid‑market grocery chains are under pressure and new apartment development is unlikely without substantial federal or state subsidy.

Bracken recommended strategies that include converting older motels into micro‑apartments where appropriate, encouraging private investors to rehab existing two‑bedroom homes, and leveraging riverfront interest for targeted development. He explained that construction costs (about $300 per square foot by his estimate) and current rents make new multifamily construction financially difficult without programs such as tax credits or Section 8 support.

Councilmembers and residents asked questions about grocery and pharmacy access after recent regional closures; Bracken said national grocery consolidation and changes in the pharmacy sector have affected local options but that federally qualified health providers and independent grocers can mitigate short‑term access concerns.

Bracken closed by noting the city’s infrastructure investments — paving, wastewater and electric upgrades — and a stabilized budget provide a stronger basis for pursuing targeted opportunities. He said the presentation was informational and no council action was required at this meeting.

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