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.
Data are now updated through Q4 2020, reflecting the impacts of COVID-19 on our regional economy. Scroll through the interactive maps and graphs below to see trends in employment, housing, and investment.
Home Prices Rise
$740K Median Home Price
Influx of VC
$2.7B total VC investment
Office Space Uncertain
14% Office Vacancy Rate
EDC Research Manager Jordan Latchford explains the data:
Key findings from q4 2020:
- HOUSING: Home sales and housing production remain strong despite economic challenges during 2020. Even high unemployment and job cuts could not shake home prices and sales in 2020. In the early days of the COVID-19 pandemic when home sales were falling compared to the previous year, there was initial concern about the housing market. However, home sales quickly bounced back and have been growing since, ending 2020 up 30 percent compared to a year ago. Furthermore, housing permits increased by 1,378 in 2020 compared to 2019, driven by multi-family units. The median-priced single-family home is $740,000, up nearly two percent in Q4 and the second highest among the top 25 most populous metros.
- VENTURE CAPITAL: Healthcare leads investment in the region. San Diego saw nearly $2.7 billion in venture capital investment come into the region. Nearly three-quarters, or $1.9 billion, went into healthcare as the industry pivots to combat the pandemic. Investors continue to see San Diego as a leader in life sciences, and many local companies have risen to meet the demand for PPE and rapid diagnostics.
- COMMERCIAL REAL ESTATE: The future of office space remains uncertain. A mass corporate exodus and quiet leasing activity dominated the office market in Q4 2020. Office net absorption declined by 976,586 sq. ft. while vacancy rates rose to 14 percent. Construction activity remained elevated at 1.5 million sq. ft., made up mainly of projects in Downtown, UTC, and Del Mar Heights. High negative net absorption coupled with continued construction will continue to push rents even lower.