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Report: Some good news for O.C. despite recession
Study shows improvements in housing affordability, water consumption – but economic decline’s impact still widely felt.
By Kristen SchottPublished: March 16, 2010 12:06 PM
Orange County continues to feel the effects of the economic downturn, but the 2010 Community Indicators report released today says that there's a "silver lining."
Housing affordability, for example, improved for the third year in a row, signaling that more first-time buyers may qualify to purchase a residence. Crime continues to decrease. In more positive news, solid and household waste production is at the lowest level in 10 years, and water consumption is on the decline.
However, the region's business climate ranks in the bottom half of the 200 metro areas rated in the report. Other factors, such as an increase in welfare enrollment and a decline in rail ridership, point to continued hardships in the region.
The Children and Families Commission of Orange County, the county of Orange and the Orange County Business Council conducted the study, which tracks the quality of life in the region – the fifth largest in the nation – as well as its business climate, health and education, among other factors.
Despite some of the negatives found in the report, Children and Families Commission Executive Director Michael Ruane says the region needs to "carry the positive trends forward."
"We need to focus on the fundamental, long-term attributes of a strong regional economy, including work force development, closing educational achievement gaps and not letting up on our efforts to make affordable housing a regional priority,” notes Ruane, who also served as the report's project director.
Orange County is the third largest in California, with a population of about 3.1 million as of January 2009, behind only L.A. and San Diego. The county's population growth dropped to 1 percent a year between 2008 and 2009, with the largest component of change occurring from natural increase, or the number of births minus deaths. The report notes that the factor will continue to prevail and will eventually become the "sole contributor" to growth.
Despite the slowdown, the region was still among the most densely populated areas in the U.S., according to the report. The region was ranked No. 18 among all counties in the nation.
The largest labor markets in the county, as of September, were trade, transportation and utilities; professional and business services; and leisure and hospitality, according to the report, which also highlights that small business continue to dominate the region. Fewer residents work in firms with more than 500 staffers than the statewide average. And small firms – or those with less than four employees, have seen the largest spike in employment since 2002, while those with more than 100 showed the largest drop in the period.
Here's a breakdown of some of the indicators:
Economic and business climate –
• O.C.'s unemployment rate rose to 9.5 percent last year after 10 years of falling below the state and national average. The rate was 10.1 percent in February 2010, compared to 13.6 statewide and 10.6 percent in the U.S.
• High cost of business continues to take a toll on the region. "Orange County must address the high costs associated with conducting business or work diligently to preserve other quality of life assets that make it a desirable place to live and work," notes the report.
• O.C.'s business climate ranked No. 107 among the 200 metro areas measured, dropping in rank 15 places from 2008.
• Overall spending and tax receipts rose to $542 million in 2007, but the region dropped among California peers in terms of visitor spending growth.
• Tourism jobs remain "relatively constant," though it is also the lowest paid employment cluster, compared to according to the report.
• Income in the region continues to grow, albeit at a slower pace than in the past: In 2007, the region's per capita income of $50,463 was higher than the state and nation.
• The job-to-housing picture also improved, but the report notes that this comes only because of a "significant decline" in employment.
• Housing affordability has improved for the third straight year. In the second quarter of 2009, more than 50 percent of households in the region could purchase an existing single-family home priced at $425,200.
• Orange County's high-tech sector remains a strong force in the business climate.
Community health and prosperity –
• About 13 percent of local families live in poverty, which is lower than the state average. But the number of children with family incomes low enough to receive free or reduced-price meals at school rose 8 percent between 2008-2009.
• Welfare enrollment grew 13 percent in one year, most likely stemming from the recession.
Education –
• More O.C. students are eligible for college than the statewide average.
• But the high school dropout rate rose in 2007-2008, with 10.9 percent of the region's students quitting during the four-year period.
Public safety –
• O.C.'s crime rate has been on the decline since 2004. The report calls the region's continued success in the factor a "positive hallmark."
• Over the last 10 years, reported crime in the county fell 14 percent, which is equal to an average of 1.6 percent each year.
Environment –
• The region's 10-year per capita water usage is "trending slightly downward," despite the record drought felt by the Western U.S.
• Usage fell 7 percent last year.
• Solid-waste disposal is the lowest its been in the past decade.
• The region's air quality has "midrange," notes the report. The region ranked No. 5 on the Air Quality Index, with Seattle seeing the best rating.
Related headlines
It's Whitman over Poizner in first gubernatorial debate
O.C.'s unemployment rate spikes to 10.1 percent
Steve Forbes talks politics, economics at local event
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Housing affordability, for example, improved for the third year in a row, signaling that more first-time buyers may qualify to purchase a residence. Crime continues to decrease. In more positive news, solid and household waste production is at the lowest level in 10 years, and water consumption is on the decline. However, the region's business climate ranks in the bottom half of the 200 metro areas rated in the report. Other factors, such as an increase in welfare enrollment and a decline in rail ridership, point to continued hardships in the region. The Children and Families Commission of Orange County, the county of Orange and the Orange County Business Council conducted the study, which tracks the quality of life in the region – the fifth largest in the nation – as well as its business climate, health and education, among other factors. Despite some of the negatives found in the report, Children and Families Commission Executive Director Michael Ruane says the region needs to "carry the positive trends forward." "We need to focus on the fundamental, long-term attributes of a strong regional economy, including work force development, closing educational achievement gaps and not letting up on our efforts to make affordable housing a regional priority,” notes Ruane, who also served as the report's project director. Orange County is the third largest in California, with a population of about 3.1 million as of January 2009, behind only L.A. and San Diego. The county's population growth dropped to 1 percent a year between 2008 and 2009, with the largest component of change occurring from natural increase, or the number of births minus deaths. The report notes that the factor will continue to prevail and will eventually become the "sole contributor" to growth. Despite the slowdown, the region was still among the most densely populated areas in the U.S., according to the report. The region was ranked No. 18 among all counties in the nation. The largest labor markets in the county, as of September, were trade, transportation and utilities; professional and business services; and leisure and hospitality, according to the report, which also highlights that small business continue to dominate the region. Fewer residents work in firms with more than 500 staffers than the statewide average. And small firms – or those with less than four employees, have seen the largest spike in employment since 2002, while those with more than 100 showed the largest drop in the period. Here's a breakdown of some of the indicators: Economic and business climate – • O.C.'s unemployment rate rose to 9.5 percent last year after 10 years of falling below the state and national average. The rate was 10.1 percent in February 2010, compared to 13.6 statewide and 10.6 percent in the U.S. • High cost of business continues to take a toll on the region. "Orange County must address the high costs associated with conducting business or work diligently to preserve other quality of life assets that make it a desirable place to live and work," notes the report. • O.C.'s business climate ranked No. 107 among the 200 metro areas measured, dropping in rank 15 places from 2008. • Overall spending and tax receipts rose to $542 million in 2007, but the region dropped among California peers in terms of visitor spending growth. • Tourism jobs remain "relatively constant," though it is also the lowest paid employment cluster, compared to according to the report. • Income in the region continues to grow, albeit at a slower pace than in the past: In 2007, the region's per capita income of $50,463 was higher than the state and nation. • The job-to-housing picture also improved, but the report notes that this comes only because of a "significant decline" in employment. • Housing affordability has improved for the third straight year. In the second quarter of 2009, more than 50 percent of households in the region could purchase an existing single-family home priced at $425,200. • Orange County's high-tech sector remains a strong force in the business climate. Community health and prosperity – • About 13 percent of local families live in poverty, which is lower than the state average. But the number of children with family incomes low enough to receive free or reduced-price meals at school rose 8 percent between 2008-2009. • Welfare enrollment grew 13 percent in one year, most likely stemming from the recession. Education – • More O.C. students are eligible for college than the statewide average. • But the high school dropout rate rose in 2007-2008, with 10.9 percent of the region's students quitting during the four-year period. Public safety – • O.C.'s crime rate has been on the decline since 2004. The report calls the region's continued success in the factor a "positive hallmark." • Over the last 10 years, reported crime in the county fell 14 percent, which is equal to an average of 1.6 percent each year. Environment – • The region's 10-year per capita water usage is "trending slightly downward," despite the record drought felt by the Western U.S. • Usage fell 7 percent last year. • Solid-waste disposal is the lowest its been in the past decade. • The region's air quality has "midrange," notes the report. The region ranked No. 5 on the Air Quality Index, with Seattle seeing the best rating. Related headlines It's Whitman over Poizner in first gubernatorial debate O.C.'s unemployment rate spikes to 10.1 percent Steve Forbes talks politics, economics at local event |
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