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 Q4 2022 economic data:
Key findings from Q4 2022:
- EMPLOYMENT: San Diego wraps Q4 with unemployment below pre-pandemic levels, at 2.9 percent.Even with a decreasing unemployment rate, San Diego continues to face a talent shortage and struggles to fill jobs in top industries like Life Sciences and Tech. For instance, the Communication Technologies and Manufacturing employment sectors are 800 and 3,700 jobs away from pre-pandemic levels, respectively.
- HOUSING: Median home price continues to drop through Q4, reaching $850,000. However, San Diego still ranks second most expensive among the most populous metro areas. On the housing supply side, a total of 9,443 housing construction permits were granted in 2022, which has remained relatively unchanged for the past three years. The housing affordability crisis has driven employers to take on the challenge directly. UCSD purchased an apartment building in Downtown’s East Village to provide housing for in a location near the MTS Blue Line Trolley to connect both the La Jolla campus and Hillcrest Medical Center.
- COMMERCIAL REAL ESTATE: Vacancy grows in office and industrial space in Q4. Trends show a negative net absorption for both office and industrial space for the past two quarters, indicating a decline in demand for commercial real estate space. This could be happening because of the continuing shift towards remote work and the lack of affordable commercial space. In Q4, asking rent prices reached an all-time high of $3.23 per square foot, potentially turning remote work into a more attractive option for employers.