San Diego is in a unique position compared to the rest of the country. Recent numbers from the U.S. Bureau of Economic Analysis (BEA) found that San Diegans' personal income growth was more than double the national average for the year 2023.
That means, on average, San Diegans have more money to their name. While that is not the reality for everyone, it is the reality for Stevie Barajas and her husband, Miguel, who recently purchased a home.
"We do have a little bit more spending money, the economy's been kind of great, our jobs have been really good," said Barajas.
The BEA reported San Diegans' personal income rose about 5% in 2023, while the national average was 2.1%. Alan Gin, an Associate Professor at the University of San Diego (USD), said that there are a few factors at play.
Get top local stories in San Diego delivered to you every morning. >Sign up for NBC San Diego's News Headlines newsletter.
"2023 was a pretty good year as far as the stock market is concerned and it was counted as part of the increase in real income bends," said Professor Gin.
The new numbers comes as minimum wage workers will see more money on their paychecks come Jan. 1. The City of San Diego will raise the hourly rate to $17.25, compared to $16.50 an hour in the state of California. The difference in pay because of a city ordinance that was passed in 2016.
"Due to the high inflation that we have in San Diego, particularly in terms of housing prices, local employers had to pay more to keep workers," said Professor Gin.
Local
As for what San Diegans can expect in 2025, it's hard to tell, according to Professor Gin. With a new Presidential administration comes new policies, such as the proposed tariffs on Canada, China and Mexico. As for San Diego's local economy, Professor Gin shared his outlook.
"I think San Diego's economy is ok, but we're not as strong as we have been in the past," said Professor Gin. "The thing that hurts us in San Diego is housing prices. Housing prices have been rising rapidly both in terms of what it takes to buy a house, but also in terms of rentals. A lot of people can't afford to buy a house in San Diego, so they're pushed into the rental market which has caused rents to go up then as well," he added.
While the Barajas family disagree with the age-old saying "money can buy happiness," they can agree that having more money on hand can bring some peace of mind.
"Money definitely makes life a little bit easier. Doesn't buy you happiness, but it makes it easier," said Barajas.
