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. Thank you to our sponsor Verizon Wireless
EDC explains San Diego’s Q3 2023 economic data:
Key findings from Q3 2023:
- TALENT: Job growth continues as job postings slow down. In Q3, employment grew 1.9 percent compared to a year ago, in line with the state but behind San Diego’s most peer metros. The labor force has recovered from Q2 losses, adding nearly 13,000 participants this quarter and up 2.8 percent from last year. In contrast, the number of unique job postings advertised by regional employers totaled 106,521 in Q3, a 32 percent decrease compared to this quarter last year.
- AFFORDABILITY: Median home price reached an all-time high. San Diego’s median home price ranks second among peer metros, behind only San Francisco. Home prices increased an additional eight percent during the last year, while home sales fell 25 percent. Year-over-year home sales have declined since August 2021. The lack of housing supply and the reduced number of transactions has resulted in record lack of affordability.
- COMMERCIAL REAL ESTATE: Office space occupancy declines for fifth consecutive quarter. In other words, more office space has become unoccupied than leased for over a year. However, net absorption is currently trending in the right direction. In Q3, the office market experienced 37,868 square feet of negative absorption, compared to 159,262 square feet in Q2 and 874,036 in Q1. The only other time San Diego experienced this degree of negative net absorption was during the height of the COVID-19 pandemic.