Benchmarking

1
Benchmarking
San Diegos Competitiveness
Julie Meier Wright San Diego Regional EDC January
13, 2006
2
Overview

• Indicators of Sustainable Competitiveness 2005
• San Diegos national competitors
• Numbers behind the housing crisis
• Housing here vs. in competitor regions
• Other challenges to competitiveness

3
Indicators of Sustainable Competitiveness Study

• The 3 Es Economy, Environment, Equity
• San Diego 18 other U.S. regions U.S. average
• 14 indicators
• A quantifiable quality-of-life index
• Key to success in the globalized economy

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Objectives of the Indicators Study

• Answer quality-of-life questions
• How does San Diego compare?
• Has San Diego improved?
• Are we a region at risk?
• Challenge leadership

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San Diegos Top Competitor Regions
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San Diegos Rankings

• 20 positions lower ranking better
• Environment 1st place
• Economy 9th place
• Equity 16th place
• Balance 11th place
• Overall 9th place

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Most Competitive Regions

• Seattle, Washington
• Denver, Colorado
• Portland, Oregon
• Raleigh, North Carolina
• Austin, Texas
• 9) San Diego

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The Most Critical Issue
Housing!
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Population Outpacing Housing
Millions
3,017,204
1,861,846
1,093,603
720,346
Source California Dept. of Finance SANDAG
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Median Housing Price, Q3 2005
Thousands
Source National Association of Home Builders
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Price vs. Income Growth, 91-05
Source National Association of Home Builders
U.S. Bureau of Economic Analysis
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Median Monthly Home Costs
Source U.S. Census Bureau American Community
Survey
13
Stretching to Afford a Home
Households Spending at Least 30 of Income on
Housing
Source U.S. Census Bureau American Community
Survey
14
Stretching to Afford a Home
New Home Loans with Adjustable-Rate Mortgages
Source SANDAG
15
Housing Opportunity Index
Households Able to Afford a Median-Priced Home,
Q3 2005
Source National Association of Home Builders
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San Diegos Declining Affordability
Source National Association of Home Builders
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Other Challenges to Competitiveness

• San Diegos fiscal crisis
• Attraction, retention of qualified workforce
• Creation and expansion of new firms
• Workers comp, budget deficit, other state issues
• Small Business Survival Index ranking

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Small Business Survival Index 2005
Lower Score is Better
Source Small Business Entrepreneurship Council
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In Conclusion

• Indicators study shows 3 Es out of balance
• Must improve economy, boost social equity
• Housing costs are the gravest threat
• Losing the housing battle to our competitors
• Need public policies to encourage more supply
• Smart growth, in-fill development strategies
• Must tackle other local and state issues

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Home is the place where, when you have to go
there, they have to take you in.
-- Robert Frost, 1915