The Northern California Megaregion consists of 21 counties divided into two coastal and two inland regions. Unlike other megaregions, the Northern California Megaregion saw higher employment growth than population growth from 2008 to 2017. The four regions have different industry mixes. In San Francisco and Silicon Valley, job growth has far outpaced the permitting of new housing units. Home prices have risen substantially across the megaregion but are much higher in the core areas than outlying counties. The Bay Area has experienced net domestic out-migration in the last three years while Sacramento and the Northern San Joaquin Valley have seen migration increases. Many workers in the megaregion now commute long distances.

1. www.bayareaeconomy.org
The 21-county Northern California Megaregion includes two coastal regions
and two inland regions.
EXHIBIT 29
Source: Bay Area Council Economic Institute

2. www.bayareaeconomy.org
Unlike the Texas Triangle and Cascadia megaregions, the Northern California
Megaregion’s employment growth rate was higher than its population
growth rate between 2008 and 2017.
EXHIBIT 30
Note: GRP=Gross Regional Product
Source: Moody’s Analytics Analysis: Bay Area Council Economic Institute

3. www.bayareaeconomy.org
The four regions within the Northern California Megaregion differ in their
industry mixes.
EXHIBIT 31
Source: California Employment Development Department Analysis: Bay Area Council Economic Institute

4. www.bayareaeconomy.org
In San Francisco and Silicon Valley, growth in the number of housing units
lags far behind job growth.
0 50,000 100,000 150,000 200,000
Jobs AddedHousing Units Permitted
Yolo County
Sacramento County
San Joaquin Valley
Placer County
San Francisco
Silicon Valley
200,364
Jobs Added Compared to Housing Units Permitted, 2007–2017
72,887
28,813
146,787
19,902
18,500
14,118
14,268
26,895
13,800
4,994
4,600
EXHIBIT 32
Sources: Association of Bay Area Governments Regional Housing Need Allocation Progress Reports; U.S. Department of Housing and Urban
Development State of the Cities Data Systems; BLS Quarterly Census of Employment and Wages; California Employment Development Department;
U.S. Census Bureau Building Permits Survey Analysis: Bay Area Council Economic Institute

5. www.bayareaeconomy.org
Home prices have increased substantially across Northern California
Megaregion counties, but wide gaps exist between the core and
outlying areas.
730
525
636
853
1,121
2017
Santa Clara
20142005
+31%
20122009
374
178 177
268
333
Sacramento
484
298 284
378 452 +20%
Placer
866
742 771
1,081
1,433
San Francisco
+33%
656
381 430
650
855 +32%
Alameda
389
159 169
254 343 +35%
San Joaquin
Median Home Prices in Key Northern California Megaregion Counties, $ Thousands
2009 2017201420122005
2009 20172014201220052009 20172014201220052009 2017201420122005
+24%
EXHIBIT 33
Note: Data represents annual average median home price estimate in 2013 dollars.
Data Source: National Association of Realtors, Moody’s Analytics Analysis: Bay Area Council Economic Institute and McKinsey & Company

6. www.bayareaeconomy.org
The Bay Area’s domestic migration has turned negative in the last three years.
EXHIBIT 34
Source: California Department of Finance Demographic Research Unit Analysis: Bay Area Council Economic Institute

7. www.bayareaeconomy.org
In contrast to and partially as a result of out-migration from the Bay Area, the
Sacramento Area and the Northern San Joaquin Valley have experienced net
domestic migration increases in the past few years.
EXHIBIT 35
Source: California Department of Finance Demographic Research Unit Analysis: Bay Area Council Economic Institute

8. www.bayareaeconomy.org
A growing number of workers in the Northern California Megaregion are
commuting long distances.
EXHIBIT 36
Source: U.S. Census Bureau American Community Survey 2016 One-Year Estimates Analysis: Bay Area Council Economic Institute