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

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

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.

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