This document summarizes economic data for Sonoma County from July 2013. It reports that the county's unemployment rate dropped to 6.5% in April 2013, the lowest in 5 years. Between 2000-2011, median household income grew 16.9% to $64,031, and is projected to increase another 16.2% by 2016. Nearly half of employed residents work in services, with retail being the second largest sector. Sonoma County experienced higher employment growth than the national and Bay Area averages in recent years.
1. ECONOMIC
SNAPSHOT
EMPLOYMENT
Bay Area Unemployment Rates
County Dec-12 Nov-12 Dec-11
Alameda 8.2% 8.5% 9.3%
Contra Costa 8.2% 8.4% 9.3%
Marin 5.5% 5.8% 6.4%
Napa 7.9% 7.5% 8.8%
San Francisco 6.5% 6.7% 7.7%
Santa Clara 7.5% 7.7% 8.6%
Solano 9.3% 9.3% 10.4%
Sonoma 7.7% 7.7% 9.0%
Source: CA-EDD
A SUMMARY OF SONOMA COUNTY’S ECONOMY
HIGHLIGHTS
In April 2013 the Sonoma County
unemployment rate dropped to
6.5%, according to the California
Employment Development
Department. This is the lowest
unemployment has been in the past
5 years.
Between 2000 and 2011, the median
household income in Sonoma
County grew by 16.9% to $64,031.
Looking into 2016, this growth is
expected to continue with median
income rising to $76,440, an
increase of 16.2% from 2011.
Almost half (48.6%) of Sonoma
County’s employed population is in
the services sector, with the second
largest sector being retail trade
(11.5%).
401 College Ave, Suite D
Santa Rosa, CA 95401-5148
707.565.7170 office • 707.565.7231 fax
www.sonomaedb.org
SONOMA COUNTY ECONOMIC
DEVELOPMENT BOARD
JULY 2013
Sonoma County is experiencing
continued job growth. As shown in
the graph below; employment growth
last year was higher than the U.S.
average, and higher than many other
regions, including the Bay Area.
Source: UCLA Anderson Forecast
Sonoma County follows
closely behind North
Dakota, the fastest-
growing state in the U.S.,
for nonfarm job growth
as shown on the right.
Sonoma County also
incurred a 4.9%
employment increase
from November 2011 to
November 2012. This
increase is higher than
that of neighboring
counties such as Marin
and is also higher than
the state average.
Employment
Development
Department
Source: UCLA Anderson Forecast
All data is subject to the most recent information available as of July 2013
2. RESIDENTIAL REAL ESTATE
Single-Family Home Sales: January 1 - March 31, 2013 Change from 2012 – 2013
Average Sale
Price
Median Sale
Price
Unit
Sales
Days on
Market
Average
Sale Price
Median
Sale Price
Unit
Sales
Sonoma
County
$459,315 $380,000 961 95 16% 20% 16%
Santa Rosa $411,272 $356,500 392 83 21% 21% -20%
Petaluma $480,227 $422,408 132 79 23% 24% -22%
Sonoma $581,305 $425,000 75 101 -5% -3% -15%
Cotati,
Rohnert Park
$370,322 $357,000 67 61 23% 20% -22%
Windsor $367,573 $360,000 63 94 11% 12% -21%
Sebastopol $614,196 $514,000 48 102 39% 30% 14%
Cloverdale $360,864 $315,000 45 91 53% 37% 10%
Healdsburg $767,220 $500,000 37 122 6% 29% -10%
Guerneville $253,276 $249,000 18 117 26% 24% -31%
Bodega Bay $514,125 $504,500 8 191 -26% -28% -47%
Source: BAREIS MLS (Single-family homes sold January 1 - March 31, 2013 &2012)
Commercial Real Estate information provided by Keegan & Coppin-ONCOR International
The Sonoma County Economic Development Board (EDB) believes all data contained within this report to be accurate and the most current
available, but does not guarantee its accuracy or completeness. Use of data from an outside source does not represent an endorsement of any
product or service by the EDB, its members or affiliates.
“In Sonoma County, almost all the recession is over with,”
- Jerry Nickelsburg, Ph.D., senior economist of UCLA’s Anderson School
of Management
COMMERICAL REAL ESTATE
Retail vacancy rates in Sonoma County
have continued to decline since their peak
in 2009 of 9.2%. In the second quarter of
2012, retail vacancy rates for Sonoma
County were 5.6%.
Office vacancy rates are currently
fluctuating around 23%.
Industrial vacancy rates have fallen to
12.3% since their peak of 15.6% in first
quarter 2010
JULY 2013
Sonoma County Economic Snapshot
All data is subject to the most recent information available as of July 2013
3. TOURISM
The long-term outlook for Sonoma County’s tourism industry
remains positive. The region is growing in recognition as a premier
tourist destination, and its proximity to Bay Area attractions and
airports will continue to support growth.
Compared to the national average, Sonoma County residents
spend considerably more per capita on travel, housing, and
entertainment. They spend 13% less on apparel and services. The
largest consumer expenditures were on housing, transportation, and
food.000
Leisure and hospitality will be among Sonoma County’s
largest drivers, but some risks to labor market improvements exist,
which will weigh on local demand for hospitality services. An uptick in
visitors and stronger pricing power has allowed hotels and other
hospitality industries to increase payrolls. However, another year of
reduced spending by local governments, on K-12 education in
particular, has resulted in layoffs and other cuts. Tech manufacturers
have also slowed hiring. As a result, workers in these industries will be
less likely to increase their spending on restaurants.
Source: California Board of Equalization (www.boe.ca.gov)
HIGHLIGHTS &
DEVELOPMENT
$53.8million expansion project of
Charles M. Schulz-Sonoma
County Airport expected to begin
in August 2013. This expansion
will allow more flights to come
into Sonoma County’s airport,
expectedly increasing tourism.
Travel and Leisure Magazine
named Healdsburg Plaza one of
the “Most Beautiful Town
Squares in the US.”
Hotel Occupancy was up 11.4%
in 201
In 2012 visitor-generated taxes
made up $168 per household,
while tourism- related
employment accounted for almost
17,000 jobs in Sonoma County
(almost 1 in 10 jobs
According to a 2011 study by the
American Booksellers
Association, Sonoma County is
ranked 14th in the United States
based on the health of its
independent retail sector, this
study was conducted out of 363
metropolitan areas.
Sonoma County Tourism
Visit California
“Sonoma County has long been an attractive destination for visitors… We
certainly are anticipating that the county will continue the upward trend in
TOT revenues that we have enjoyed over the past few years.”
- Tim McGregor, board chairman of Sonoma County Tourism.
FOR MORE INFORMATION ABOUT SONOMA COUNTY TOURISM & UPCOMING EVENTS
PLEASE VISIT WWW.SONOMACOUNTY.COM
JULY 2013
Sonoma County Economic Snapshot
All data is subject to the most recent information available as of July 2013
The Economic
Development Board’s
Purchasing Trends
Index shows this to be
the second year that
Sonoma County has
scored higher than the
United States Index,
since 2007. This
quarter’s index score of
70 indicates that
businesses feel less
economically
challenged operating in
Sonoma County than in
the US as a whole.
4. Sonoma County Economic Snapshot
JULY 2013
“We really are a county of small businesses, almost micro businesses…”
- Ben Stone, executive director
Sonoma County Economic Development Board
This graph depicts a Business
Confidence index, by the Economic
Development Board, with information
from Sonoma County’s local business
leaders.
401 College Ave, Suite D
Santa Rosa, CA 95401-5148
707.565.7170 office • 707.565.7231 fax
www.sonomaedb.org
All data is subject to the most recent information available as of July 2013
Sonoma County has almost 18,000 businesses, most of which are
small in scale. Nine out of 10 companies in Sonoma County employ
fewer than 20 workers, according to a 2011 survey by the state
Employment Development Department.
According to the EDB’s study of the Sonoma County Economy,
prepared by Moody’s Analytics; Technology and Tourism are
expected to lead the county in growth in 2013. Technology, led by the
many medical device manufacturers in Sonoma County, and wine and
tourism are strengthening at a rate faster than the national average.
A trend that remains consistent into 2016 is the shrinking percentage
of households earning less than $35,000. The proportion of the county
in this range will decrease by 4.5 percentage points by 2016. This
trend, coupled with the increasing proportion of the county earning
over $100,000, will result in further concentration of households in
higher-income tiers.
QUICK FACTS