The Riverside-San Bernardino-Ontario metro area has an overall grade of C+ with a composite score ranking it 40.4th percentile out of 50 US metros. This city's economic character is most defined by its labor demand, which is near median, and its wage growth, which is above average at 5.74% year-over-year. The combination of these metrics, along with a below-average unemployment rate of 4.60%, suggests a mixed economic environment.
Labor Demand
The employment growth rate in Riverside-San Bernardino-Ontario is -0.12% year-over-year, and weekly hours are deviating -1.210% from the city's own 12-month baseline. This combination signals a contraction in labor demand, indicating that the city is not adding jobs at a significant rate and hours are below trend. This suggests a lack of genuine demand expansion in the labor market.
Unemployment
The unemployment rate in Riverside-San Bernardino-Ontario is 4.60%, which is below average and corresponds to a percentile rank of 39th. This indicates a relatively tight labor market with some slack, making it moderately challenging for businesses to hire in this city. As a result, businesses may face some wage pressure when trying to attract and retain talent.
Wage Growth
The year-over-year wage growth in Riverside-San Bernardino-Ontario is 5.74%, which is above average and ranks in the 74th percentile. This fast wage growth rate implies rising labor costs for employers, but it also means good news for worker purchasing power. As wages continue to rise, businesses may need to adjust their compensation packages to remain competitive.
Cost of Living
Riverside-San Bernardino-Ontario has a cost of living score that ranks near median, with a PSF of $335/sqft and average hourly earnings of $35.50/hr, resulting in a ratio of 9.44. The PSF is falling by -2.3% year-over-year, which is a key driver of the city's affordability. With a percentile rank of 42nd, the city is neither extremely affordable nor expensive, making it a moderately attractive location for talent without requiring significant wage premiums.
Labor Force Growth
The civilian labor force in Riverside-San Bernardino-Ontario is contracting at a rate of -2.31% year-over-year, which is in the bottom tier and corresponds to a percentile rank of 6th. This decline in labor force supply implies a structural headwind for hiring, making it challenging for businesses to find and attract new talent.
Building Permits
The number of residential building permits in Riverside-San Bernardino-Ontario is decreasing by -9.55% year-over-year, which is below average and ranks in the 33rd percentile. This decline in building permits suggests that housing supply is tightening, which may lead to future affordability issues and challenges in accommodating a growing workforce.
Days on Market
The median days on market for homes in Riverside-San Bernardino-Ontario is 59 days, with a year-over-year increase of 1.7%. This indicates a moderately competitive market for relocating workers, as homes are sitting on the market for a relatively average amount of time. However, the rising trend may signal a normalization of the market, making it slightly more accessible for workers to find housing.
Office Economy
Riverside-San Bernardino-Ontario has a very shallow professional talent pool, with an office/professional worker share that ranks in the bottom tier and corresponds to a percentile rank of 0th. This makes the city less suited for businesses that require a deep knowledge-economy talent pool, such as tech, finance, or consulting firms, but may be more suitable for industrial or logistics-dominant businesses.
The Riverside-San Bernardino-Ontario metro area offers a mixed economic environment with above-average wage growth, but also faces challenges such as a contracting labor force and tightening housing supply. The single biggest risk or constraint for businesses considering this location is the declining labor force supply, which may limit their ability to find and attract new talent, making it essential to factor this into their location decision.