West coast innovation hubs including San Diego lead the pack for 12-month wage growth
San Diego’s office vacancy rate and unemployment rate is at the lowest it has been this cycle and one of the lowest in the country.
November 13, 2019
- According to a recent study done by PayScale of the top 32 metro markets in the United States, San Diego is tied for number five with Cleveland for year-over-year wage growth at 3.6 percent ending Q3 2019. In addition to ranking in the top five for wage growth, the San Diego market also is one of the tightest metros for office occupancy at 88.5 percent. The correlation among office high occupancy rates and wage growth is grouped with west coast markets are seeing significant growth thanks to innovation firms.
- San Diego’s office vacancy rate (11.5 percent) and unemployment rate (2.7 percent) is at the lowest it has been this cycle and one of the lowest in the country. The tight labor market has now spurred companies to raise wages to recruit and retain a highly-skilled workforce, especially in the innovation sector. In addition to San Diego’s high talent pool, large technology companies have taken notice of office rates being 148 percent lower and average household income 49 percent lower compared to San Francisco.
Source: JLL Research; PayScale; BLS, ESRI