San Diego’s Economic Snapshot: Q1 2023

Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S.

EDC explains San Diego’s Q1 2023 economic data:

Key findings from Q1 2023:

  1. OFFICE SPACE: Firms look to cut costs as remote work remains popular. In Q1, office space experienced a huge decline in net absorption, meaning more offices became vacant than occupied. The last time San Diego experienced this level of negative net absorption was in Q4 2020, during the height of the pandemic. Downtown (92101) continues to experience rising vacancy rates since 2020. With asking rates at an all-time high of $3.25 per sq. ft. and employees still interested in remote work, office tenants are reducing their footprint as leases come due.
  2. JOBS: San Diego leads employment growth in California. With 3.3 percent job growth compared to a year ago, San Diego outpaced California peers and stands amongst fast-growing metros in the country. San Diego adds 50,300 more jobs compared to Q1 2022. The strongest growth locally came from Government and Leisure and Hospitality, adding 3,000 and 2,600 jobs respectively. Meanwhile, Trade, Transportation and Utilities shed 7,000 jobs.
  3. HOUSING: Home prices cool from last year’s highs. San Diego’s median home price reached $915,000 in Q1, which experienced an expected seasonal increase. However, prices are down 3.7 percent compared to a year ago. The Housing Affordability Index (HAI) in San Diego has remained at 15 percent for the past three quarters, making San Diego one of the most unaffordable counties in California.

Check out our most recent Economic Snapshot below

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