According to the 2007 Milken Report of the top 200 Metropolitan Regions in the US for business, San Diego is now ranked 72nd. In 2002, that same report placed San Diego as No 1 ( numero uno) performing Metropolitan Regions.
How did this happen in 5 short years? The answer lies in our cost of housing as the number one culprit. It seems that the high cost of housing has scared away businesses that might otherwise increase our growth rate.
In 2006 with over 3 million in the county in population, we added only 17,800 jobs for a whopping 1.4% increase. The Milken report places San Diego below 71 other better performing metro areas. The other factors that were considered besides job growth were salary increases and its main focus was on technology.
San Diego ranked very high nationally in 2002 but now has suffered as Hi-tech and Bio-tech firms paychecks have stagnated helping to bring our rank to 105th on the list for wage and salary growth.
The better news in this report is that San Diego still ranks as the top 1 or 2 areas of the country in technology diversification but still only 17th on the list for the proportion of the regions economy derived from high tech.
Even though housing affordability was not specifically a criteria, San Diego homes prices after the huge surge between 2002 and 2006, has had the profound effect of failing to draw new business to the region.
The housing downturn though has not resulted in huge drops in home values. With affordability still not within focus, it looks like it may take quite a few years before the San Diego region enjoys the type of growing prosperity the region enjoyed just 5 years ago.
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I consider San Diego an excellent place to live and would love to share with you my enthusiasm for the many communities that encompass it. Looking forward to assisting you with your Real Estate needs.
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I love San Diego. We used to live in Lemon Grove.
Lazarus
Hi, Thanks for commenting Lazarus. What made you want to leave San Diego?
I have written a few posts on the repercussions of a lack of affordable housing in this area. Looks like it may be an issue from coast to coast! On a side note...have you noticed a change in AR google presence?It may be my imagination but I don't see it like I used to!
Hi Joan, I can't say that I have noticed but you are probably correct. I wonder why that would be ? What are your thoughts?
Great post Bill. I have been talking about this issue a lot. The one problem we have in San Diego is the lack of entry level housing. It's difficult to put a family of 5 into a 2 bedroom condo! This is one reason people are leaving San Diego to go to Temecula and other parts of S. Riverside county. Keeping jobs here and making the commute is worth it to be able to live in a home that is less than 5 years old, has 2000 + sqft., 4 bedrooms, etc. Oh and all for the bargain price of $300,000. How did Riverside/San Bernardino stack up in the report you referenced?
Hi Jason, I didn't notice that it was mentioned. But I would bet it is there somewhere. The growth of that area had to be been noticed and if not then it would make all the rest of the report somewhat less reliable. What has happened there is nothing short of amazing? Thanks for dropping by and adding in your comments and enhancing this mail!
William, you always dig up interesting things to post about. I'm not sure what I make of this report. I don't see an immediate impact on my life or future. It might affect others who were thinking of moving here.
I might like to see the report to check out other areas, but I don't think I would ever want to move somewhere just because there was "affordable" housing there.
Bill Roberts
Hi Bill, Thanks for the compliment. I thought it was interesting that the criteria they used ( jobs and wages) had a correlation to the housing market in that the hi-tech and bio-tech industries don't expand here or new companies don't move here because of the cost of hosing. Yet most of the technology they work on is in the billions of $$ in grants, and or products they sell here . Sort of like the industries that job out the work skills in other countries but still expect the government to give them favored status for tax breaks.
Your last comment is my exact sentiment as well.