HIGHLIGHTS FROM THE 2009 OC COMMUNITY INDICATORS REPORT

[NOTE: YOU MAY DOWNLOAD A FREE PDF COPY OF THE 2009 OC COMMUNITY INDICATORS REPORT HERE]

Housing Continues to Drive High Cost of Living
2009 ECONOMIC AND BUSINESS CLIMATE

Description of Indicator
This indicator uses a cost of living index to compare prices of housing, consumer goods, and services for Orange County and peer
metropolitan regions. The weighted index compares local market prices in the following areas:
• Housing (28%) • Groceries (13%)
• Utilities (10%) • Transportation (10%)
• Health care costs (4%) • Miscellaneous items (35%)

The average for all 300 metro areas analyzed equals 100 and each area’s individual index is read as a percentage of the average for
all places.

Why is it Important?
A high cost of living relative to peer markets can make Orange County less attractive
as a destination for businesses and workers. In addition, businesses already operating in Orange County may opt to relocate or expand elsewhere. Current residents – particularly young workers – may decide to move to more affordable areas.

How is Orange County Doing?
In the second quarter of 2008:
• Orange County’s cost of living was the third highest of our peer regions, which are
among the highest of the 300 metro areas analyzed in the index.
• San Francisco and San Jose were the only markets more expensive.
• With 100 being average, Orange County measured 155.8 on the index (up from
154.9 last year).
• Orange County’s cost of living measures for groceries, utilities, transportation and miscellaneous items tended to rank in the middle among peers, but high housing
costs significantly affected the index, making Orange County’s score among the
highest.

[from page 19]
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High Average Income and Growth Rate in 2006

Description of Indicator
This indicator measures per capita income levels and income
growth. Total personal income includes wages and salaries,
proprietor income, property income, and transfer payments, such as
pensions and unemployment insurance. Figures are not adjusted for
inflation.

Why is it Important?
A high per capita income for residents is crucial in the context of
Orange County’s high housing costs. In addition, a higher relative
per capita income signals greater discretionary income for the
purchase of goods and services.

How is Orange County Doing?
Orange County boasts fast income growth in recent years:
• In 2006, Orange County’s per capita income of $48,209 was
higher than the state and national averages and up 6.0% from
$44,465 in 2005.
• When compared to peer and neighboring markets, Orange
County has the fourth highest per capita income, trailing only
San Jose, Boston and Seattle.
• Between 1997 and 2006, Orange County posted a per capita
income growth of 5.1%, which is faster than all peer regions
compared except for San Diego.
• Over this same 10-year period, the average inflation rate was
2.5%, which should be taken into account when interpreting
these income growth percentages.
• As the country slips into recession, per capita income is
anticipated to decline.

[from page 20]
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