MONTEREY COUNTY — The imbalance between housing supply and demand is a key challenge to economic growth in Monterey County, according to a new report that makes clear the need for increasing housing supply.
“Monterey County: Industries & Economic Trends 2024” was released Sept. 20 at an event hosted by the Monterey County Business Council, in collaboration with Building Business Back and the County of Monterey, and presented by Dr. Christopher Thornberg, a renowned economist and founding partner of Beacon Economics.
While incomes grew close to 4%, wages in Monterey County remain well below state averages and the cost of living is higher than the statewide average. Workers simply can’t afford to live here or end up paying more than they should to keep a roof over their heads, and businesses have a hard time attracting workers to the region or retaining qualified employees.
According to the California Association of Realtors, the median price for a single-family home in Monterey County was $945,000 in July 2024, which is 6.6% above California’s median price of $886,560.
The solution, said Thornberg, is housing: Housing is foundational to a resilient regional economy and to workforce retention. Residential construction must increase significantly to address the housing shortage.
In a detailed overview of the Monterey County labor market, Thornberg focused on the county’s disproportionately high concentration of employment in agriculture and hospitality/leisure, compared to California overall. A high percentage of lower-wage jobs in those two sectors — the county’s leading industries — result in the county’s average wages being 38% lower than the state average.
With a crop value of $4.4 billion in 2023, agriculture is a cornerstone of the county’s economy, supporting more than a third of its private-sector jobs. It’s the largest job sector, with a disproportionate concentration of jobs in agriculture compared to other parts of California, and declining payrolls over the past year.
While there has been a growing focus on developing industries involved with technology and innovation, lower-wage jobs remain prevalent in agriculture and hospitality/leisure, the county’s second-leading industry sector.
“Dr. Thornberg’s report reinforces how closely housing is intertwined with economic growth and resilience in our region,” said Monterey Bay Economic Partnership President and CEO Tahra Goraya. “Our region must continue making strategic investments in workforce infrastructure to bring well-paying, high-demand jobs that grow our economy, and create new housing units of all types to support a stable workforce and local employers.”
View the entire report online at tinyurl.com/mrxycr73.
