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San Francisco Center for Economic Development
September 2011
 

Unemployment: Bay Area Numbers Decline

Unemployment declined in August for the entire Bay Area, with some counties making significant reductions in unemployment rates. San Francisco dropped from 9.0 percent to 8.8 percent month-to-month, compared to a state unemployment rate of 12.6 percent. Other major California counties’ numbers were higher, including Los Angeles (12.7); Orange (9.0); San Diego (10.2); and Sacramento (12.4) percent.

 
Bay Area Unadjusted Unemployment Rates, August 2011
 

County

Aug-11

July-11

Aug-10

Alameda

10.7%

10.9%

11.7%

Contra Costa

10.6%

11.0%

11.3%

Marin*

7.8%

8.0%

8.4%

Napa

8.8%

9.2%

9.4%

San Francisco

8.8%

9.0%

9.6%

San Mateo

8.3%

8.7%

8.9%

Santa Clara

9.9 %

10.3 %

11.9%

Solano

11.6%

12.0%

11.9%

Sonoma

10.0%

10.1%

10.5%

*Lowest in state. Source: CAL-EDD

 

 
Historical Unemployment—San Francisco—August 2008-201
 
Source: CAL-EDD, BLS
 

Housing – July Prices and Transactions Fall

After posting a strong month-to-month sales gain in June, the Bay Area housing market took a breather in July as buyers and sellers watched the political standoffs in Washington, D.C. and awaited the impact of more gloomy economic reports. Sales fell more than usual from June—especially for homes above $500,000—but edged higher than July last year, which was 2010's first month to lose the full force of homebuyer tax credits.

 
A total of 6,887 new and resale houses and condos sold in the nine-county Bay Area in July, down 13.9 percent from 7,998 in June and up 1.7 percent from 6,773 in July 2010.
 
The median price paid for all new and resale houses and condos sold in the Bay Area in July was $374,000, down 1.0 percent from $377,750 in June and down 7.0 percent from $402,000 in July 2010. The June median was the highest this year, while the July median was the second-highest.
 

 

Sales Volume

Median Price

All homes

Jul-10

Jul-11

%Chng

Jul-10

Jul-11

%Chng

Alameda         

   1,369  

  1,424  

  4.0%   

$381,000  

$345,000  

   -9.4%

Contra Costa   

   1,454  

  1,445  

-0.6%   

$295,000  

$258,500  

  -12.4%

Marin          

     224  

    232  

  3.6%   

$715,000  

$635,000  

  -11.2%

Napa            

     116  

    105  

-9.5%   

$365,000  

$281,000  

  -23.0%

Santa Clara     

   1,595  

  1,584  

-0.7%   

$534,000  

$500,000  

   -6.4%

San Francisco   

     452  

    444  

-1.8%   

$676,500  

$675,000  

   -0.2%

San Mateo       

     554  

    570  

  2.9%   

$605,000  

$568,000  

   -6.1%

Solano         

     562  

    604  

  7.5%   

$209,000  

$185,500  

  -11.2%

Sonoma          

     447  

    479  

  7.2%   

$330,000  

$306,500  

   -7.1%

Bay Area       

   6,773  

  6,887  

  1.7%   

$402,000  

$374,000  

   -7.0%

Source: DQ News

 

VC Survey Highlights Key Sectors

According to the 2010 Global Trends in Venture Capital Survey, anticipated Venture Capital Investment increases by sector in the next five years are:

 
  1. Clean Technology – 80 percent
  2. Healthcare Services – 63 percent
  3. New Media/Social Networking – 56 percent
  4. Medical Devices & Equipment – 51 percent
  5. Consumer Business – 51 percent
 
Source: 2010 Global Trends in Venture Capital Survey, Deloitte & Touche LLP & National Venture Capital Association
 
Biotech is Expanding
The 2011 California Biomedical Industry Report published multiple surveys that found surprising consensus of confidence in the state’s ongoing attractiveness to the biotech industry. Some of the key findings:
 
  • Eighty percent of biomedical companies in California report that their companies have been courted by other countries, state governments or regional economic development associations in the past year.
  • Sixty-eight percent of CEO’s say they expect to expand the overall size of their workforce within California, while only 31 percent planned to increase workforce levels outside the state.
  • Twice as many biomedical CEOs have said that they plan to increase manufacturing in California (41 percent) than outside the state (21 percent).
  • The key reasons for locating in California are the availability of a highly skilled, entrepreneurial workforce and California’s culture of innovation, anchored by leading research universities.
 
Source: www.siteselection.com, BayBio, CA Healthcare Institute, PwC
 
Desirability of Urban Housing
The National Association of Realtors survey of 2010 home buyers and renters reflects favorably on San Francisco as a premier destination:
 
  • 47 percent would like to live in a downtown, an intercity residential neighborhood, or a suburb with shops or amenities within walking distance.
  • 23 percent want to live within walking distance to rail transit.
  • 59 percent will take a smaller house and shorter commute over a bigger house and a longer commute.
 
Source: National Association of Realtors
Sustainability – “West is Best”
California has placed first overall in Site Selection magazine’s Sustainability Rankings based on number of LEED-certified buildings, EPA Brownfield funding, leveraged funding since 1995, renewable energy generation, green incentives and “greentech projects.”
 
Top States for Sustainability
  1. California
  2. Washington
  3. Oregon
  4. Massachusetts
 
Top MSA’s and States for Sustainable Metro Systems
Also according to Site Selection, the following states and corresponding MSA’s have the most sustainable, energy friendly public transportation systems.
  1. San Francisco/Oakland/Fremont, CA
  2. Portland/Vancouver/Beaverton, OR
  3. Denver/Aurora, CO
  4. Chicago/Naperville/Joliet, IL
  5. Los Angeles/Long Beach/Santa Ana, CA
 
Source: Site Selection Magazine
 
 

SFO Passenger Travel Up in July; Terminal Two A Resounding Success

In July, San Francisco International Airport surpassed a spring high in previous months almost across the board. Total passengers increased by 4.4 percent, while domestic passengers increased by a seasonal high of 6.5 percent. International flights, however, dipped slightly by 1.5 percent, falling from June of 2011, but are still up YTD from July of 2010. Expected flight operations at SFO were projected to be down due to economic concerns in the summer months; however that number is still increasing month-to-month and YTD.

 

Airport Activity (SFO)

July-11

July-10

% change M-M

% change YTD

Total Passengers

3,947,019

3,778,957

4.4%

3.4%

Domestic

3,031,196

2,846,172

6.5%

3.7%

International

892,963

906,519

-1.5%

2.7%

Flight Operations – Total

35,916

34,591

3.8%

3.0%

Source: FlySFO
 
Airport Activity

Executive Travel magazine has selected SFO’s Terminal 2 as winner of its "Leading Edge Award" for 2011.  Citing the complete top-to-bottom renovation of the terminal, the magazine specifically noted "its home city's ethos in its art, design and food offerings" and that the "results are not only beautiful but virtuous." Open for only a few months, Terminal 2 continues to receive accolades from aviation professionals and the average traveler, alike.

 
Source: FlySFO.com & Executive Travel
 

Upcoming Event

October 13, 4-6 pm [Chamber of Commerce Boardroom]
Where’s The Money Round-Table
“What Do Angel Investors Really Look For in a Start-Up?”

Join Digital Media, Technology and Cleantech entrepreneurs for an educational dialogue about attracting angel investors, using the Keiretsu Forum process to pitch for funding and knowing the steps to take now. This is a free event with limited seating. [Hosted by the San Francisco Center for Economic Development].

For more information or to register: Where's The Money Round-Table

 

Upcoming Conference: PV Power Plants 2012

Solarpraxis, a leading knowledge service provider in the renewable energy sector, will host a conference for the Inverter and PV System Technology Industry Forum scheduled for February 27 and 28, 2012 in San Francisco. The conference includes two days of industry information addressing the United States market, system costs, grid integration, and certification requirements. Experts from around the world and from the region will debate and participate in the conference.

 
For more information or to register, please visit: www.solarpraxis.de
 
 
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415.352.8819
Email: dconaghan@sfced.org
www.sfced.org

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