QUARTERLYREPORTDEC 2025
E C O N O M I C D E V E L O P M E N T
T A B L E O F
C O N T E N T S
MISSION, VISION,
PURPOSE, & GOALS
11 3
13 7
16 8
19 WORKFORCE &
LABOR STATISTICS
COMMERCIAL REAL
ESTATE
INDICATORS
HOUSING DATA
COMMUNITY
PROFILE METRICS
BUSINESS &
DEVELOPMENT
INDICATORS
PROGRAM METRICS
TRANSPORTATION 22
ARTS, CULTURE, &
EVENTS 23
SOURCES &
DISCLAIMER 28
MESSAGE FROM
THE CHAIR
IMPLEMENTATION
PLAN
BUSINESS SUPPORT
4 5
27 MCROECONOMIC
OVERVIEW 6
LOCAL RECAP 14
S a n t a R o s a c o n t i n u e s t o d e m o n s t r a t e r e s i l i e n c e , i n g e n u i t y , a n d d e t e r m i n a t i o n c o l l e c t i v e l y t o f o s t e r a t h r i v i n g l o c a l e c o n o m y . T h i s Q u a r t e r l y E c o n o m i c D e v e l o p m e n t R e p o r t p r o v i d e s a n i n - d e p t h l o o k a t t h e l a t e s t t r e n d s a n d p e r f o r m a n c e i n d i c a t o r s s h a p i n g o u r c i t y ’ s u n i q u e e c o n o m i c l a n d s c a p e . I t e n c o m p a s s e s w o r k f o r c e s t a t i s t i c s , c o m m e r c i a l r e a l e s t a t e a c t i v i t y , h o u s i n g d a t a , c o m m u n i t y e v e n t s , a n d p r o g r a m u p d a t e s , o f f e r i n g a c o m p r e h e n s i v e u n d e r s t a n d i n g o f o u r s t r e n g t h s , c h a l l e n g e s , a n d g r o w t h o p p o r t u n i t i e s .
T h e r e p o r t ’ s p u r p o s e e x t e n d s b e y o n d p r e s e n t i n g d a t a ; i t c o n n e c t s t h e s e f i g u r e s t o t h e b r o a d e r n a r r a t i v e o f S a n t a R o s a ’ s e c o n o m i c f u t u r e . O u r c i t y ’ s v i t a l i t y d e p e n d s o n i n f o r m e d d e c i s i o n s g u i d e d b y r e a l d a t a , a l i g n e d w i t h t h e E c o n o m i c D e v e l o p m e n t S t r a t e g i c P l a n a d o p t e d b y t h e C i t y C o u n c i l i n 2 0 2 4 . K e y i n d i c a t o r s s u c h a s e m p l o y m e n t r a t e s , b u s i n e s s a c t i v i t y , d e v e l o p m e n t t r e n d s , a n d c u l t u r a l e v e n t s w h i l e o f f e r i n g a q u i c k s n a p s h o t o f h o w o u r c o m m u n i t y i s p e r f o r m i n g a n d w h e r e t a r g e t e d a c t i o n s c a n h a v e t h e g r e a t e s t i m p a c t .
T h e m e t r i c s y o u w i l l s e e h e r e a r e i n t e g r a l t o a c h i e v i n g t h e c i t y ’ s o v e r a r c h i n g g o a l s : f o s t e r i n g a s t r o n g , d i v e r s e e c o n o m y , c r e a t i n g q u a l i t y j o b s , e n s u r i n g h o u s i n g o p p o r t u n i t i e s a n d b u i l d i n g a c o m m u n i t y t h a t i s c o n n e c t e d , v i b r a n t , a n d i n c l u s i v e . E a c h c h a r t , t a b l e , a n d p r o g r a m h i g h l i g h t t h e r e i n i s p a r t o f a l a r g e r s t r a t e g i c e f f o r t t o p o s i t i o n S a n t a R o s a a s a h u b f o r i n n o v a t i o n , i n v e s t m e n t , a n d q u a l i t y o f l i f e . T h i s e n d e a v o r i s a c o l l a b o r a t i v e e f f o r t , i n v o l v i n g C i t y s t a f f , l o c a l b u s i n e s s e s , n o n p r o f i t o r g a n i z a t i o n s , e d u c a t i o n a l i n s t i t u t i o n s , a n d r e g i o n a l p a r t n e r s .
I w a n t t o a c k n o w l e d g e t h e d e d i c a t i o n o f o u r E c o n o m i c D e v e l o p m e n t s t a f f , t h e b u s i n e s s e s w h o c o n t i n u e t o i n v e s t h e r e , a n d t h e c o m m u n i t y m e m b e r s w h o s e e n g a g e m e n t k e e p s o u r p r i o r i t i e s f o c u s e d a n d r e l e v a n t . Y o u r c o m m i t m e n t d r i v e s t h e p r o g r e s s r e f l e c t e d i n t h e s e p a g e s . T o g e t h e r , w e a d v a n c e i n i t i a t i v e s t h a t s t r e n g t h e n n e i g h b o r h o o d s , e n h a n c e i n f r a s t r u c t u r e , a n d c r e a t e o p p o r t u n i t i e s f o r a l l r e s i d e n t s .
A s C h a i r o f t h e C i t y C o u n c i l ’ s E c o n o m i c D e v e l o p m e n t S u b c o m m i t t e e , I a f f i r m o u r c o m m i t m e n t t o a d v a n c i n g t h e c o u n c i l - a d o p t e d E c o n o m i c D e v e l o p m e n t S t r a t e g y t r a c k i n g p r o g r e s s w i t h t r a n s p a r e n c y a n d i n t e n t . T h i s r e p o r t s e r v e s b o t h a s a c h e c k p o i n t a n d a r o a d m a p , e n s u r i n g a l i g n m e n t w i t h o u r g o a l s a n d a d a p t a b i l i t y t o e v o l v i n g c o n d i t i o n s . T h a n k y o u f o r c o n t r i b u t i n g t o o u r c o l l e c t i v e e f f o r t m a k i n g S a n t a R o s a a c i t y w h e r e b u s i n e s s e s t h r i v e , r e s i d e n t s p r o s p e r , a n d o u r f u t u r e r e m a i n s b r i g h t .
MESSAGE
FROM THE
CHAIR
JEFF OKREPKIE
CITY COUNCIL MEMBER - DISTRICT 6
ECONOMIC DEVELOPMENT SUBCOMMITTEE CHAIR
3 4
5 A s Q u a r t e r 3 2 0 2 5 c a m e t o a c l o s e , a f e d e r a l s h u t d o w n b e g a n , d i s r u p t i n g t h e o f f i c i a l f l o w o f d a t a o n t h e A m e r i c a n e c o n o m y a n d p l a c e s l i k e S a n t a R o s a .
T a r i f f p o l i c y , d e p o r t a t i o n s , a n d c o n c e r n s a r o u n d f e d e r a l s e r v i c e s ( e s p e c i a l l y h e a l t h c a r e b e n e f i t s f o r o u r l o w e r - i n c o m e a n d a g i n g h o u s e h o l d s ) c o n t i n u e a s j o b - g r o w t h h e a d w i n d s . W h i l e m o r e p e o p l e a r e g o i n g t o w o r k i n t h e U n i t e d S t a t e s i n t h e a g g r e g a t e , t h e u n e m p l o y m e n t r a t e i s a l s o r i s i n g , s u g g e s t i n g t h a t A m e r i c a n e m p l o y e r s a r e n o t h i r i n g f a s t e n o u g h o r t h a t m o r e p e o p l e a r e l o s i n g t h e i r j o b s t h a n g a i n i n g n e w o n e s . T h e f e d e r a l w o r k f o r c e c h a n g e s s t a n d o u t a b i t t h e r e , e s p e c i a l l y i n p l a c e s w h e r e f e d e r a l e m p l o y m e n t i s a l a r g e p a r t o f t h e l o c a l e c o n o m y ( t h i n k e a s t e r n V i r g i n i a , M a r y l a n d , D e l a w a r e a s e x a m p l e s ) .
A s o f N o v e m b e r 2 0 2 5 , u p d a t e s o n i n f l a t i o n a n d i n t e r e s t r a t e s s u g g e s t t h a t t a r i f f s h a v e p u t p r e s s u r e o n p r i c e s , a n d t h e F e d e r a l R e s e r v e h a s l o w e r e d i n t e r e s t r a t e s t w i c e s i n c e S e p t e m b e r 2 0 2 5 t o h e l p s l o w l y s t i m u l a t e t h e e c o n o m y a n d a l s o f i n d a m e d i u m - t e r m l e v e l o f s h o r t - t e r m i n t e r e s t r a t e s a f t e r q u i c k i n c r e a s e s t o f i g h t i n f l a t i o n i n 2 0 2 2 . C o n s u m e r i n f l a t i o n h a s s h o w n a m i n o r r e v e r s a l s i n c e e a r l i e r i n 2 0 2 5 , p r i m a r i l y i n “ c o r e ” g o o d s a n d s e r v i c e s ( i n f l a t i o n e x c l u d i n g f o o d a n d e n e r g y p r i c e s ) . B e c a u s e o f t h e f e d e r a l s h u t d o w n , l a b o r - m a r k e t d a t a a t t h e s t a t e a n d l o c a l l e v e l s h a v e n o t y e t b e e n u p d a t e d d u e t o a l a g i n t h e s u r v e y p r o c e s s t h a t p r o d u c e s t h e m o n t h l y e s t i m a t e s i n N o v e m b e r 2 0 2 5 . T h e d a t a t h r o u g h A u g u s t 2 0 2 5 f o r C a l i f o r n i a , t h e N o r t h B a y c o u n t i e s a n d S a n t a R o s a p r o v i d e s o m e i n s i g h t s .
A t t h e n a t i o n a l l e v e l , l a b o r m a r k e t s h a v e s l o w e d b u t h a v e n o t s t a l l e d i n t e r m s o f g r o w t h . J o b s i n m a n u f a c t u r i n g , i n p a r t i c u l a r , h a v e f a d e d n a t i o n a l l y s i n c e S e p t e m b e r 2 0 2 4 , a c c o r d i n g t o S e p t e m b e r 2 0 2 5 d a t a . J o b s i n t e c h n o l o g y ( l i k e l y t e c h l a y o f f s b a s e d o n t o o m u c h h i r i n g f o r t h e c u r r e n t c h a n g e s i n a r t i f i c i a l i n t e l l i g e n c e ( A I ) a n d s o m e o f t h e g r o w t h t h e r e b e g i n n i n g t o s l o w d o w n ) , p r o f e s s i o n a l s e r v i c e s , a n d h o t e l s . C o n s t r u c t i o n j o b s g r e w b y 0 . 5 p e r c e n t , w h i l e j o b s o v e r a l l g r e w b y 0 . 8 p e r c e n t .
I n C a l i f o r n i a , d a t a a r e o n l y a v a i l a b l e t h r o u g h A u g u s t a s N o v e m b e r 2 0 2 5 c o m e s t o a c l o s e . T h e n u m b e r o f j o b s i n C a l i f o r n i a g r e w b y 0 . 5 p e r c e n t b e t w e e n A u g u s t 2 0 2 4 a n d A u g u s t 2 0 2 5 , w i t h f a r m j o b s i n c r e a s i n g b y 3 . 3 p e r c e n t a n d n o n - f a r m j o b s i n c r e a s i n g b y 0 . 4 p e r c e n t . C o n s t r u c t i o n , m a n u f a c t u r i n g , t e c h n o l o g y , p r o f e s s i o n a l s e r v i c e s , h o t e l s , a n d r e s t a u r a n t s a l l s a w a d e c r e a s e i n h i r i n g . H e a l t h c a r e , w h i c h c o n t i n u e s t o g r o w w i t h o u t m u c h i m p e d i m e n t , i n c r e a s e d b y m o r e t h a n 5 % o v e r t h e l a s t 1 2 m o n t h s . S i n c e 2 0 1 9 , h e a l t h c a r e j o b s i n C a l i f o r n i a h a v e i n c r e a s e d b y 2 4 . 7 p e r c e n t , w h i l e t h e s t a t e o v e r a l l h a s g r o w n b y o n l y 3 . 1 p e r c e n t . F u r t h e r , C a l i f o r n i a r e s i d e n t s w i t h a j o b a n y w h e r e i n t h e w o r l d h a v e o n l y i n c r e a s e d b y 0 . 6 8 p e r c e n t s i n c e A u g u s t 2 0 1 9 , f u e l i n g a n i n c r e a s e i n C a l i f o r n i a ’ s u n e m p l o y m e n t r a t e ( s t a t e r e s i d e n t s w h o a r e l o o k i n g f o r w o r k b u t h a v e n o t f o u n d a j o b ) s i n c e 2 0 2 3 b y 0 . 7 p e r c e n t a g e p o i n t s ( 4 . 8 p e r c e n t t o 5 . 5 p e r c e n t ) , b u t f l a t s i n c e A u g u s t 2 0 2 4 .
S o n o m a C o u n t y ’ s l a b o r m a r k e t i s s h o w i n g m o r e s i g n s o f w e a k n e s s t h a n C a l i f o r n i a a s a w h o l e . A t t h e s a m e t i m e , t h e u n e m p l o y m e n t r a t e i s l o w e r t h a n t h e s t a t e a v e r a g e ( S o n o m a C o u n t y ' s s e a s o n a l l y a d j u s t e d u n e m p l o y m e n t r a t e w a s 4 . 5 p e r c e n t i n A u g u s t 2 0 2 5 , v e r s u s 4 . 3 p e r c e n t i n A u g u s t 2 0 2 4 ) . W h e n l o o k i n g a t S o n o m a C o u n t y r e s i d e n t s ' a c c e s s t o j o b s , e m p l o y m e n t g r e w 1 . 2 p e r c e n t b e t w e e n A u g u s t 2 0 2 4 a n d A u g u s t 2 0 2 5 , b u t i s s t i l l d o w n 3 . 5 p e r c e n t s i n c e A u g u s t 2 0 1 9 . T h e l a b o r f o r c e , t h e n u m b e r o f c o u n t y r e s i d e n t s w o r k i n g o r l o o k i n g f o r w o r k , g r e w b y 1 . 4 p e r c e n t i n t h e l a s t t w e l v e m o n t h s b u t i s d o w n a l m o s t t w o p e r c e n t s i n c e A u g u s t 2 0 1 9 . A c r i t i c a l f a c t o r , g i v e n r e c e n t f e d e r a l p o l i c i e s , i s t h e n u m b e r o f u n d o c u m e n t e d w o r k e r s w h o h a v e l e f t t h e a c t u a l l a b o r f o r c e . W e w i l l c o n s i d e r t h i s l a t e r w h e n w e r e v i e w r e c e n t d a t a o n t a x a b l e s a l e s .
I n S o n o m a C o u n t y , i n d u s t r i e s t h a t h a v e s e e n s o m e r e d u c t i o n s i n t h e l a s t 1 2 m o n t h s i n c l u d e :
C o n s t r u c t i o n , - 4 . 8 %
R e s t a u r a n t s , - 2 . 9 %
P r o f e s s i o n a l s e r v i c e s , - 1 . 7 %
M a n u f a c t u r i n g , - 1 . 4 %
R e t a i l , - 0 . 4 %
H e a l t h c a r e c o n t i n u e s i t s j o b g r o w t h , a l o n g s i d e s t a t e w i d e a n d r e g i o n a l g r o w t h o t h e r w i s e , a t 5 . 1 p e r c e n t f r o m A u g u s t 2 0 2 4 t o A u g u s t 2 0 2 5 . W i t h o v e r a l l j o b g r o w t h u p 0 . 3 p e r c e n t , h e a l t h c a r e a n d h i r i n g i n f i n a n c e a n d w h o l e s a l e , a s w e l l a s T r i b a l h i r i n g , h e l p e d s u p p o r t S o n o m a C o u n t y ’ s j o b m a r k e t .
MACROECONOMIC
OVERVIEW FOR
SANTA ROSA
NOVEMBER 2025
PROVIDED BY DR. ROBERT EYLER
6 The unemployment rate in Santa Rosa has increased by about 0.2 percentage points since 2024, to 4.5 percent as of August 2025 after seasonal adjustments. Data on local hiring in 2025 are not yet available, but Santa Rosa accounts for approximately 37 percent of the jobs at local employers within Sonoma County. Wages in Santa Rosa are just under $30 on average and are determined by regional forces; Napa and Marin counties affect the labor markets of Santa Rosa and Sonoma County, as they share a regional worker pool. Wages have grown consistently across the region since 2019; the critical factor is purchasing power, or what a worker can buy with their wages after inflation. In Sonoma County, wages before inflation increased approximately $6.50 per hour; and then after inflation, roughly $1.00 per hour. Purchasing power affects taxable sales and the stability of housing rental markets when it rises (positive) or falls (negative).
Analysis provided by Dr. Robert Eyler
S o u r c e : E m p lo y m e n t D e v e lo p m e n t D e p a r t m e n t ( E D D ) S o n o m a C o u n t y
WORKFORCE AND
LABOR STATISTICS
Sonoma County, November 2025
Average Salary: $64,201
Santa Rosa, November 2025
Average Salary: $61,235
Average Hourly Wage: $29
S o u r c e : Z i p R e c r u i t e r
U N E M P L O Y M E N T R A T E
W A G E M E T R I C S
7 R e t a i l
S o u r c e : C o S t a r
COMMERCIAL REAL
ESTATE INDICATORS
T R E N D I N G V A C A N C Y R A T E S - R E T A I L 8 T h e S a n t a R o s a r e t a i l s u b m a r k e t h a s a v a c a n c y r a t e o f 5 . 5 % a s o f t h e f o u r t h q u a r t e r o f 2 0 2 5 . S a n t a R o s a ' s v a c a n c y r a t e o f 5 . 5 % c o m p a r e s t o t h e s u b m a r k e t ' s f i v e - y e a r a v e r a g e o f 4 . 1 % a n d t h e 1 0 - y e a r a v e r a g e o f 3 . 5 % . A m o n g t h e r e t a i l s u b t y p e s , n e i g h b o r h o o d c e n t e r v a c a n c y s t a n d s a t 6 . 9 % , p o w e r c e n t e r v a c a n c y i s 0 . 7 % , s t r i p c e n t e r v a c a n c y i s 3 . 5 % , m a l l v a c a n c y i s 4 . 7 % , a n d g e n e r a l r e t a i l v a c a n c y i s 5 . 8 % . T h e S a n t a R o s a r e t a i l s u b m a r k e t h a s r o u g h l y 6 7 0 , 0 0 0 S F o f s p a c e l i s t e d a s a v a i l a b l e , f o r a n a v a i l a b i l i t y r a t e o f 5 . 9 % .
T h e S a n t a R o s a S u b m a r k e t i s w i t h i n S a n t a R o s a c i t y l i m i t s , a n d “ S a n t a R o s a ” i s S o n o m a C o u n t y l i m i t s , o r t h e S a n t a R o s a a r e a m a r k e t .
T h e S a n t a R o s a i n d u s t r i a l s u b m a r k e t h a s a v a c a n c y r a t e o f 7 . 8 % a s o f t h e f o u r t h q u a r t e r o f 2 0 2 5 . S a n t a R o s a ' s v a c a n c y r a t e o f 7 . 8 % c o m p a r e s t o t h e s u b m a r k e t ' s f i v e - y e a r a v e r a g e o f 5 . 6 % a n d t h e 1 0 - y e a r a v e r a g e o f 4 . 8 % . T h e S a n t a R o s a i n d u s t r i a l s u b m a r k e t h a s r o u g h l y 9 7 0 , 0 0 0 S F o f s p a c e l i s t e d a s a v a i l a b l e , f o r a n a v a i l a b i l i t y r a t e o f 7 . 9 % . A s o f t h e f o u r t h q u a r t e r o f 2 0 2 5 , t h e r e i s 2 2 , 0 0 0 S F o f i n d u s t r i a l s p a c e u n d e r c o n s t r u c t i o n i n S a n t a R o s a
T R E N D I N G V A C A N C Y R A T E S - I N D U S T R I A L T h e S a n t a R o s a o f f i c e s u b m a r k e t h a s a v a c a n c y r a t e o f 7 . 2 % a s o f t h e f o u r t h q u a r t e r o f 2 0 2 5 . S a n t a R o s a ' s v a c a n c y r a t e o f 7 . 2 % c o m p a r e s t o t h e s u b m a r k e t ' s f i v e - y e a r a v e r a g e o f 7 . 3 % a n d t h e 1 0 - y e a r a v e r a g e o f 5 . 9 % . T h e S a n t a R o s a o f f i c e s u b m a r k e t h a s r o u g h l y 7 9 0 , 0 0 0 S F o f s p a c e l i s t e d a s a v a i l a b l e , f o r a n a v a i l a b i l i t y r a t e o f 8 . 2 % . A s o f t h e f o u r t h q u a r t e r o f 2 0 2 5 , t h e r e i s n o o f f i c e s p a c e u n d e r c o n s t r u c t i o n i n S a n t a R o s a . I n c o m p a r i s o n , t h e s u b m a r k e t h a s a v e r a g e d 9 5 0 S F o f u n d e r c o n s t r u c t i o n i n v e n t o r y o v e r t h e p a s t 1 0 y e a r s .
T R E N D I N G V A C A N C Y R A T E S - O F F I C E R e t a i l
S o u r c e : C o S t a r
COMMERCIAL REAL
ESTATE INDICATORS
M A R K E T R A T E S - O F F I C E
A v e r a g e r e n t s i n S a n t a R o s a a r e r o u g h l y $ 2 6 . 0 0 / S F , c o m p a r e d t o t h e w i d e r S a n t a R o s a m a r k e t a v e r a g e o f $ 2 6 . 0 0 / S F .
E s t i m a t e d o f f i c e m a r k e t p r i c i n g i n S a n t a R o s a i s $ 2 1 1 / S F c o m p a r e d t o t h e m a r k e t a v e r a g e o f $ 2 1 3 / S F . A v e r a g e m a r k e t p r i c i n g f o r S a n t a R o s a i s e s t i m a t e d a t $ 2 2 0 / S F f o r 4 & 5 S t a r p r o p e r t i e s , $ 2 0 4 / S F f o r 3 S t a r a s s e t s , a n d $ 2 1 8 / S F f o r 1 & 2 S t a r b u i l d i n g s .
M A R K E T R A T E S - R E T A I L
9 M a r k e t r e n t s i n S a n t a R o s a a r e $ 3 0 . 0 0 / S F . R e n t s h a v e c h a n g e d b y 2 . 6 % y e a r - o v e r - y e a r i n S a n t a R o s a , c o m p a r e d t o a c h a n g e o f 1 . 8 % a c r o s s S a n t a R o s a a s a w h o l e . E s t i m a t e d r e t a i l m a r k e t p r i c i n g i n S a n t a R o s a i s $ 2 8 4 / S F ( b l u e l i n e ) c o m p a r e d t o t h e m a r k e t a v e r a g e o f $ 2 9 2 / S F ( g r e e n l i n e ) . A v e r a g e m a r k e t p r i c i n g f o r S a n t a R o s a i s e s t i m a t e d a t $ 2 6 0 / S F f o r n e i g h b o r h o o d c e n t e r p r o p e r t i e s , $ 2 6 4 / S F f o r p o w e r c e n t e r p r o p e r t i e s , $ 2 8 0 / S F f o r s t r i p c e n t e r p r o p e r t i e s , $ 2 5 0 / S F f o r m a l l p r o p e r t i e s , a n d $ 3 1 0 / S F f o r g e n e r a l r e t a i l p r o p e r t i e s .
M A R K E T R A T E S - I N D U S T R I A L
M a r k e t r e n t s i n S a n t a R o s a a r e $ 1 6 . 3 0 / S F . R e n t s a v e r a g e a r o u n d $ 1 5 . 7 0 / S F f o r l o g i s t i c s b u i l d i n g s , $ 1 7 . 7 0 / S F f o r f l e x p r o p e r t i e s , a n d $ 1 6 . 7 0 / S F f o r s p e c i a l i z e d a s s e t s . E s t i m a t e d i n d u s t r i a l m a r k e t p r i c i n g i n S a n t a R o s a i s $ 2 2 0 / S F c o m p a r e d t o t h e m a r k e t a v e r a g e o f $ 2 1 6 / S F . A v e r a g e m a r k e t p r i c i n g f o r S a n t a R o s a i s e s t i m a t e d a t $ 2 1 0 / S F f o r l o g i s t i c s p r o p e r t i e s , $ 2 5 0 / S F f o r f l e x a s s e t s , a n d $ 2 1 0 / S F f o r s p e c i a l i z e d b u i l d i n g s .
S o u r c e : C o S t a r
S T O R E F R O N T S P A C E -
D O W N T O W N
S A N T A R O S A
S o u r c e : C o S t a r
R e t a i l S p a c e - 1 1 v a c a n t r e t a i l p r o p e r t i e s f o r l e a s e i n t h e
d o w n t o w n a r e a . T h i s a c c o u n t s f o r l e s s t h a n 5 % o f a l l p r o p e r t i e s w i t h i n t h e b o u n d a r i e s o f t h e D o w n t o w n A c t i o n O r g a n i z a t i o n a n d t h e
R a i l r o a d S q u a r e A s s o c i a t i o n .
T h e S a n t a R o s a P l a z a M a l l a c c o u n t s f o r 1 8 % o f t h e d o w n t o w n r e t a i l
s p a c e i n t e r m s o f s q u a r e f o o t a g e .
COMMERCIAL REAL
ESTATE INDICATORS
10 R E T A I L S P A C E -
S A N T A R O S A
T h e r e a r e c u r r e n t l y 1 0 9 1 v a c a n c i e s i n a l l o f S a n t a R o s a . T h i s i n c l u d e s o v e r 6 2 7 , 0 0 0 s q u a r e f e e t o f v a c a n t r e t a i l s p a c e w i t h i n t h e C i t y .
T h e r e a r e 7 3 7 v a c a n t i n d u s t r i a l p r o p e r t i e s a n d 9 4 1 o f f i c e p r o p e r t i e s .
S o u r c e : C a lif o r n ia B u s in e s s a n d E c o n o m ic D e v e lo p m e n t
H O U S I N G D A T A
New building permits (residential): 78
H O U S I N G C O N S T R U C T I O N
11 S o u r c e : Z illo w
H O U S I N G D A T A
New building permits (non-residential): 5
H O U S I N G C O N S T R U C T I O N
12 C O M M U N I T Y P R O F I L E
M E T R I C S
H o u s e h o l d s i n S a n t a R o s a e a r n a m e d i a n y e a r l y i n c o m e o f $ 9 4 , 4 6 2 . 4 7 . 3 % o f t h e h o u s e h o l d s e a r n m o r e t h a n t h e n a t i o n a l a v e r a g e e a c h y e a r . H o u s e h o l d e x p e n d i t u r e s a v e r a g e $ 1 1 4 , 4 9 7 p e r y e a r . T h e m a j o r i t y o f e a r n i n g s g e t s p e n t o n T a x a n d R e t i r e m e n t , S h e l t e r , T r a n s p o r t a t i o n , G r o c e r y , a n d H e a l t h C a r e .
S o u r c e : C a l i f o r n i a B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t
I N C O M E A N D S P E N D I N G
13 L O C A L R E C A P
When considering commercial real estate markets, we are looking for two critical issues in Santa Rosa with respect to the City’s history:
Vacancies in downtown areas as an indicator of foot traffic and revenues where a population of workers and residents exists; and
The city overall is a location for business across many submarkets.
Retail has been somewhat resilient, as our mall spaces continue their gradual transformation amid rising competition.
The “neighborhood” centers — smaller strip malls around Santa Rosa — have seen more vacancies since 2024, along with our mall spaces. Forecasts to 2029 suggest stability, except for neighborhood centers, which still face pressure from rising vacancy rates. Some of this pressure can be generalized to smaller businesses: the combination of rising wages, slower increases (if not downward pressure) in the local labor force, rising business costs, and increasing competition is hurting them. Rising industrial space vacancies suggest concern about the need for inventory storage, perhaps related to the wine industry. Napa County, for example, has had rising vacancy rates at its airport business-park locations with respect to its warehousing facilities.
Office vacancy is a persistent problem in many North Bay markets, where stability is strong, but a large share of office space remains vacant—a trend from the early 2010s. Santa Rosa, as a business hub in the North Bay, has seen elevated vacancies, but pricing remains stable, mirroring regional trends. Retail spaces may gain in pricing over time if tourism spending returns toward 2030; the forecast shows more demand than supply; however, there is likely to be little new retail space built versus renovated.
Housing data are provided by ownership status (owner-occupied versus renter-occupied). The Census Bureau estimates the number of owner- and renter-occupied housing units annually as part of its American Community Survey (ACS). Like much of suburban northern California, Santa Rosa leans toward homeownership over rental, though less than in Sonoma County overall (as of the latest data from 2023, 64.9 percent of Sonoma County’s occupied housing units were owner-occupied). California is 55.8 percent on average, closer to Santa Rosa. The growth of both permitted home renovation, tenant improvement work and housing units can act as a forecasting tool for construction and the regional economy overall.
Looking back one year from September 30, 2025, housing prices in Santa Rosa have decreased by 3.7 percent but have increased by 17.6 percent since September 2019 (pre-pandemic). On average, Sonoma County has seen prices fall by 3.45 percent since September 2024, but prices have increased by 18.6 percent from September 2019 to September 2025. California overall saw prices slip by close to two percent, but have increased by an average of 41.6 percent since September 2019 statewide. This home value surge has been driven by housing markets in California’s southern Central Valley (Kern, Riverside, and San Bernardino counties stand out) and its southern coastlines (Santa Barbara, Orange and San Diego counties stand out). Lower interest rates may help support current prices, but do not expect a surge in housing prices before the end of the 2020s here in the North Bay.
S o u r c e : C a l i f o r n i a B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t NOVEMBER 2025
PROVIDED BY DR. ROBERT EYLER
14 L O C A L R E C A P
Household incomes are just one part of supporting local retailers, rental owners, healthcare providers, and restaurants. Visitors to Santa Rosa also contribute to spending that leads to additional seasonal gains. Taxable sales in Santa Rosa, as reported by the California Department of Tax and Fee Administration, fell by 2.8 percent from fiscal year 2024 to fiscal year 2025; these are the latest data available as of September 30, 2025 (data are through June 30, 2025 for taxable sales). Overall, Sonoma County is down 1.7 percent, and California is down 0.7 percent over the same timeframe. Rising inflation, rising deportations and threats of such changes, and general economic uncertainty and reduced travel spending all blend to change taxable sales and those effects are difficult to decompose. When all are happening simultaneously, we have to expect more pressure on maintaining taxable sales growth.
Business License counts provide a way to monitor progress on economic development attraction and retention activities. The data suggest most new openings are retail or restaurants in downtown areas or shopping centers such as Montgomery Village. In some cases, not renewing a business license could be as simple as a service provider in Santa Rosa having a temporary assignment end. Reinstated license growth is good, especially in “Group 3” (Contractors, Land Developers, Recreation, and Entertainment). As we discussed above, healthcare employers stand out for continued jobs growth.
Things to Watch
In Santa Rosa’s economy, we will watch how both residents and visitors spend and stay over the holidays; holiday-season retail activity helps support many local businesses. Still, some themes are emerging to watch, and also shifting national and state economic and political forecasts to consider as context as we get closer to 2026:
Taxable sales across the city economy will be a focus not only for city officials in terms of local tax revenue but also as a gauge for resident spending power and tracking tourism revenues that land in Santa Rosa.
Business growth needs to be more diverse in terms of providing long-term support to the city economy (not just new retail or restaurant businesses).
At the national and state levels, there is no rising expectation of recession, but clouds are forming:
Growth in labor markets has slowed;
The inflationary effects of continued jobs growth, tariffs, and income growth are generally likely to slow the American economy in 2026;
Lower interest rates will provide some relief, but we should expect regional housing markets to remain somewhat flat in 2026, if not a small amount of continued downward pressure.
State employment levels are slowing down, with much of California’s budget fate for the next fiscal year contingent upon equity markets' stability or growth, another vector of macroeconomic risk for Santa Rosa, especially as affects regional housing and tourism markets.
S o u r c e : C a l i f o r n i a B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t 15 NOVEMBER 2025
PROVIDED BY DR. ROBERT EYLER
B U S I N E S S A N D
D E V E L O P M E N T
I N D I C A T O R S
B U S I N E S S L I C E N S E S
16 Trade, Transportation &
Utilities
Healthcare & Social
Assistance
Retail Trade
Leisure & Hospitality
Manufacturing
Accommodation & Food
Services
Construction
Nurse Practitioners
Physician Assistants
Solar Photovoltaic Installers
Medical & Health Services Managers
Home Health & Personal Care Aides
Data Scientists
Information Security Analysts
Mental & Behavioral Health Occupations
Professional & Business Services
Scientific & Technical Services
Management of Companies & Enterprises
Administrative & Support Services
Waste Management & Remediation (Administrative &
Support category)
Healthcare & Health Services
Advanced & Sustainable Manufacturing
Clean Energy & Climate Tech
Information Security, Software & Data Science
Behavioral & Community Health Services
Childcare & Early Childhood Education
Tourism, Culinary Arts & Experience Economy
Professional & Financial Services
Entertainment-Focused Retail
Food & Beverage Production
S o u r c e : B u s i n e s s R e c r u i t m e n t P l a n - T a r g e t I n d u s t r i e s R e p o r t
B U S I N E S S A N D
D E V E L O P M E N T
I N D I C A T O R S
T O P E M P L O Y M E N T
S E C T O R S
H I G H G R O W T H
O C C U P A T I O N S
17 I N D U S T R Y S E C T O R S W I T H
A B O V E - A V E R A G E
U N E M P L O Y M E N T ( > 4 % )
S A N T A R O S A ’ S R E C O M M E N D E D
T A R G E T I N D U S T R I E S F O R
R E C R U I T M E N T
B U S I N E S S &
D E V E L O P M E N T
I N D I C A T O R S
N E W B U S I N E S S H I G H L I G H T S
B U S I N E S S E S C L O S E D
C o u n t y - w i d e
D a t e R a n g e : J u l y 2 0 2 5 - O c t o b e r 2 0 2 5 18 S a n t a R o s a
D a t e R a n g e : J u l y 2 0 2 5 - O c t o b e r 2 0 2 5
P R O G R A M M E T R I C S
E C O N O M I C C O N D I T I O N S - U N I T E D S T A T E S 19 Compared to the first quarter, the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.
Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 1.2 percent in the second quarter, compared with an increase of 1.9 percent in the first quarter.
The price index for gross domestic purchases increased 1.9 percent in the second quarter, compared with an increase of 3.4 percent in the first quarter. The personal consumption expenditures (PCE) price index increased 2.1 percent, compared with an increase of 3.7 percent. Excluding food and energy prices, the PCE price index increased 2.5 percent, compared with an increase of 3.5 percent.
P R O G R A M M E T R I C S
R E G I O N A L E C O N O M I C C O N D I T I O N S - S O N O M A C O U N T Y 20 E C O N O M I C C O N D I T I O N S - C A L I F O R N I A In Q1 2025, California’s economy showed modest improvement. Real GDP held steady at $3.39T, slightly above the 2024 average. Payroll jobs remained flat at 18.0 million, while the unemployment rate ticked up to 5.4%. Personal income grew strongly, up 5.2% annualized from 2024. Housing starts rebounded sharply to 115,100 units, and home prices rose 1.5% year-over-year.
Sonoma County is home to approximately 26,686 businesses, supporting an estimated 208,094 employees. The county generates an estimated $39.9 billion in annual revenue, reflecting a strong regional economy. As of the fourth quarter of 2024, the average weekly wage in the Santa Rosa metro area was $1,452—slightly below the national average of $1,507.
P R O G R A M M E T R I C S
A N N U A L S U R V E Y
21 The Annual, District-based survey was released on July 14, and will remain open until August 15. There were 251 responses, and a snapshot of two of the question responses are below. The data show that respondents rate the economic growth in their neighborhood as staying the same, and that the City can support small businesses by improving permitting processes, improving infrastructure, providing grants, loans, and incentives, and creating programs to support entrepreneurs.
The results of the survey can be found here under the October 13 agenda.
T R A N S P O R T A T I O N
S o u r c e : C a l i f o r n i a B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t 22 S o u r c e : U S N e w s - R e a l E s t a t e N e w s Santa Rosa residents enjoy a relatively short average commute time of 17.8 minutes—4.2 minutes less than the national average. The majority of commuters (79%) drive to work, with smaller percentages using public transit (3.7%), walking (2.4%), or biking (0.5%). Santa Rosa area is served by 12 airports within 50 miles, has freight rail access, and is located 12 miles from the nearest interstate.
A R T S R O U N D T A B L E
A R T S , C U L T U R E , & E V E N T S
23 In October 2025, the City launched the Arts
Roundtable, fulfilling the strategic plan’s directive
to establish a non-governmental advisory
framework that encourages open community
dialogue around arts and cultural development.
The Roundtable plans to continue quarterly into
2026 in various districts.
Topics included: Creative Mapping & Activations,
placemaking initiatives, marketing & visibility.
A R T W A L K
On November 1, the City of Santa Rosa officially
launched the 2025–2027 Santa Rosa Art Walk, a two-
year temporary exhibition designed to activate the city’s core with public art. The Art Walk showcases nine
artworks, selected from 109 national submission,
representing a mix of sculpture, kinetic works, light-
based art, and interactive installations created by both local and national artists. Stretching from Historic
Railroad Square through Downtown and to the Museum
of Sonoma County, the exhibition creates an immersive,
open-air cultural corridor that centers creativity,
sustainability, and community connection. The project
supports ongoing efforts to enhance public space,
increase access to the arts, and elevate Santa Rosa as an arts destination.
Maps available in English and Spanish at SRCity.org/Arts
S O C I A L M E D I A - S R A R T S & C U L T U R E
A R T S , C U L T U R E , & E V E N T S
24 Instagram saw major overall growth—especially in views, engagement, and follows driven by strong performance in July—while Facebook had fewer views but improved engagement, visits, and follower growth, showing a smaller but more active audience.
W E B S I T E A N A L Y T I C S
Views increased 189%
Users increased 204% The number of unique visitors who accessed the Arts & Culture homepage.
Event Count increased 196% : The total number of tracked interactions such as link clicks, downloads, or embedded media plays which indicate user engagement with content.
A R T S , C U L T U R E , & E V E N T S
25 L I V E A T J U I L L I A R D
S E C O N D S U N D A Y S
The 2025 season marked the 30th
anniversary of Live at Juilliard, and the
milestone year drew exceptional
attendance, with crowds packing
Juilliard Park every Sunday. Audiences
came out strong to enjoy a diverse
lineup featuring LA GENTE SF, Dgiin,
Dirty Cello, Onye & The Messengers, The
Sorentinos, and Ellie James & The
Electric Dreams. The consistently high
turnout reflected just how beloved this
long-running summer concert series
continues to be in Santa Rosa.
Attendance:
July 27: 1300
Aug 3: 1200
August 10: 1000
August 17: 750
August 24: 1000
August 31: 800
The Second Sundays Summer 2025
series brought strong community
participation to Courthouse Square,
drawing 795 attendees in June, 1,200 in
July, 300 in August, and 468 in
September. Across the season, 29
partner organizations, multiple City
departments, live music each month, and
popular additions like Rosie the Trolley
and the Sensory Regulation Station
helped make the inaugural year a
welcoming, family-friendly success. For
the full report and additional program
details, you can view it here: Second
Sundays
A R T S , C U L T U R E , & E V E N T S
26 S P E C I A L E V E N T S
July 2025 - November 2025
38 permitted events City-wide
1 Prince Memorial Greenway, 2 Railroad Square,
3 Races/Marathons, 32 Courthouse Square
Approximate attendees: 144780
Over the quarter, Santa Rosa saw an especially
active and varied slate of events that highlighted
the community’s cultural, recreational, and civic
energy. Signature gatherings like the Wednesday
Night Market, Farmers Market, Historic Railroad
Square Horse & Carriage Rides, and the Winter
Lights Tree Lighting drew consistent community
participation.
Cultural celebrations—including Día de los Muertos, Guelaguetza, El Grito Fest, Viva SoCo, and the Sueños Markets— added vibrancy and showcased the region’s diverse heritage. The quarter also featured numerous athletic and wellness events such as the Santa Rosa Marathon, Turkey Trot, Bike MS Waves to Wine, the Team DJFE Triathlon Series, and the Tunnels to Towers 5K. Additional activities—including festivals, block parties, Creek Week tours and cleanups, music events, rallies, film screenings, and resource fairs—rounded out the calendar. Altogether, the quarter reflected a dynamic mix of traditions, community connection, and citywide engagement.
BUSINESS SUPPORT
27 B U S I N E S S C O N C I E R G E P R O G R A M
Launching, relocating, or expanding a business can be a daunting process for small businesses, entrepreneurs, and even experienced professionals. The City of Santa Rosa Business Concierge Program provides business owners with the expertise and support they need to succeed. Administered by the Small Business Ombudsman and overseen by the Chief Economic Development Officer and the Planning and Economic Development Director, this program offers assistance in areas such as location selection, business planning, technical support, securing financing, obtaining the necessary permits and licenses to open your doors, and facilitating the resolution of any issues that arise during the construction process. More information: srcity.org/starting-a-business You can view a report of the success of the first six months of the program online here: srcity.org/Initiatives#EconDev
O N E S T O P S H O P & B U S I N E S S L O U N G E What is the One-Stop Shop?
The One-Stop Shop Business Center serves as a resource hub where local businesses and entrepreneurs can schedule time with advisors, consultants, or city staff. Whether seeking financing options, navigating permitting and licensing, or receiving technical assistance with planning, this space is designed to provide hands-on business support in a comfortable, welcoming setting.
You can now schedule in person appointments with our Small Business Ombudsman online at srcity.org/EconDevBCP
A complementary online business portal will also feature:
Key performance indicators and econometric data on Santa Rosa’s economy Virtual tools and resources for new and expanding businesses Guides to city services and business development opportunities
A Welcoming Space for Businesses & Community
Designed in a work café style, the new space features lounge seating and tables to foster collaboration and conversation. To enhance the atmosphere, the space includes plants—creating a healthier, oxygenated environment— and a rotating digital and physical display of public art from the city’s collection.
Located at City Hall, 100 Santa Rosa Avenue, Room 6, By Appointment Only.
S O U R C E S & D I S C L A I M E R
28 State of California Department of Finance
Bureau of Economic Analysis
City of Santa Rosa Insights
Bureau of Labor Statistics
Employment Development Department
OEWS Employment and Wage Statistics
Keegan & Coppin
CoStar
Zoom Prospector
ZipRecruiter
Zillow
Comercia
Real Estate News
Italicized interpretation provided by Dr. Robert Eyler, Economist of Sonoma State University
R E S O U R C E S
D I S C L A I M E R
This report is provided by the City of Santa Rosa Economic Development Division as a compilation of general market and economic data, along with key local performance indicators, gathered from a variety of public and private sources. While City staff review and vet the information for relevance and consistency, the City of Santa Rosa does not independently produce the underlying data and therefore cannot attest to the methodologies used, nor guarantee the accuracy, completeness, or timeliness of the information presented.
Data contained in this report is subject to revision or update by the original sources at any time, and figures may differ from other publications or subsequent releases. Most data is historical in nature and reflects past conditions; it should not be relied upon as a forecast or guarantee of future economic performance. Users of this report are encouraged to consult the original sources for additional context, methodology, and the most current information available.