Building more reasonably priced housing near good-paying jobs could cut California\u2019s long commutes and trim \u2013 not increase \u2013 traffic jams for everybody.<\/p>\n
Let me use geeky differences in employment statistics to demonstrate how the nation\u2019s two oddest job markets \u2013 the Inland Empire and San Jose \u2013 reveal the workplace economics behind long commutes.<\/p>\n
My trusty spreadsheet found the extremes of those metropolitan areas by comparing two federal counts of workers in the nation\u2019s 36 job markets with 1 million or more workers.<\/p>\n
First, consider the number of residents in these metropolitan areas who say they\u2019re employed. That\u2019s based on household survey data.<\/p>\n
Next, there\u2019s the number of workers that bosses employ in these metro areas, data that comes from payroll statistics.<\/p>\n
And gaps between the two job numbers are partly due to highly technical statistical factors. Also, California\u2019s high housing costs mean many households need two jobs to balance their budgets.<\/p>\n
Yet when these employment numbers wildly differ, it\u2019s a good bet there\u2019s a traffic jam involved.<\/p>\n
Outbound workers<\/p>\n
Let\u2019s start with Inland Empire oddness.<\/p>\n
Bosses in Riverside and San Bernardino counties have 1.7 million workers. But the metropolitan area has 2.09 million employed residents.<\/p>\n
That 22% gap \u2013 388,000 people \u2013 is by far the largest job shortfall among the 36 giant U.S. markets.<\/p>\n
You can find much of that gap crowding freeways to and from coastal jobs on workdays. The Inland Empire\u2019s cheaper housing motivates the commutes.<\/p>\n
How huge is the Inland Empire divide? Well, the next-widest gaps are in San Antonio and Portland at 8%, Miami at 7%, and Houston at 6%.<\/p>\n
And the total shortfall of the 36 giant job markets is tiny: 2% or 1.3 million. The Inland Empire accounts for roughly one-third of all gaps.<\/p>\n
Job magnets<\/p>\n
Conversely, consider the San Jose metro as an extreme example of a commuting destination.<\/p>\n
Bosses in this region, comprising Santa Clara and San Benito counties, have 1.17 million workers. Meanwhile, the metro has only 1.02 million employed residents<\/p>\n
That 13% inbound gap, or 144,000, is the widest among the 36 giant job markets.<\/p>\n
It\u2019s a symbol of the magnetic appeal of working in Silicon Valley. It\u2019s also why Bay Area commutes can be as horrible as Southern California drive times.<\/p>\n
The next biggest inbound gaps are modest: Columbus, Ohio, is at 5%. Cincinnati, Indianapolis, and Orlando are at 3%.<\/p>\n
Golden State extras<\/p>\n
California\u2019s four other giant job markets are only mildly imbalanced by this yardstick.<\/p>\n
To the south, the metro area comprising Los Angeles and Orange counties was essentially in balance. San Diego County had a 1% job shortfall.<\/p>\n
To the north, Sacramento had a 3% job shortfall, while the San Francisco market had 2% more jobs than employed people.<\/p>\n
Follow the money<\/p>\n
These workplace misalignments are not simply fodder for traffic chatter, as significant wealth gaps complicate policy debates on a host of civic issues, especially housing.<\/p>\n
Contemplate the gap between average wages, a yardstick of how much local jobs pay, and household incomes, which can be driven by where workers are employed or how many are employed in a household.<\/p>\n
Once again, the Inland Empire and San Jose are at opposite ends of the spectrum.<\/p>\n
In the Inland Empire, the $62,900 average wage paid by local jobs ranks third-lowest of the 36 giant metros. So, this math makes it look poor.<\/p>\n
Meanwhile, the median household income is $91,000, the 17th highest. This way, the Inland Empire looks more like the middle of the pack.<\/p>\n
Either way, that 45% wage shortfall is easily No. 1 nationally.<\/p>\n
Much of Southern California feels the shortfall as Inland Empire commuters jam the region\u2019s freeways and toll roads to chase hefty paychecks in coastal counties. Meanwhile, jobs in the Inland Empire are dominated by its low-paying logistics industry.<\/p>\n
This also creates a housing policy conundrum.<\/p>\n
Yes, Inland Empire real estate developers are as active as any in California. Yet, they often chase coastal paychecks by building housing that looks pricey to locals but is relatively affordable for a typical commuter\u2019s salary.<\/p>\n
Ponder coastal pay.<\/p>\n
San Diego has an average wage of $89,500. It may be 22% below its $109,100 household income, the nation\u2019s No. 4 shortfall, but it\u2019s 42% better than Inland Empire wages.<\/p>\n
L.A.-Orange County\u2019s $87,000 average wage is 11% below its $96,400 household income \u2013 the No. 18 shortfall \u2013 but it\u2019s 38% higher than what Inland Empire bosses.<\/p>\n
Paychecks fuel Southern California\u2019s traffic jams.<\/p>\n
Bay Area blues<\/p>\n
It\u2019s not much better in the north.<\/p>\n
Consider Sacramento\u2019s $81,300 average wage, which is 21% below its $98,800 household income. That\u2019s the nation\u2019s fifth-largest shortfall.<\/p>\n
Blame the gap on gigantic tech paydays moving inland.<\/p>\n
San Jose\u2019s $220,400 average wage is the highest in America, thanks to technology\u2019s wealth machine. That dwarfs local household incomes of $164,800 and is also No. 1. This 25% wage premium is by far the nation\u2019s largest.<\/p>\n
Next, think about San Francisco\u2019s $145,200 wages, No. 2 nationally, topping the $135,600 household incomes, also second-best. That 7% premium is the fourth-largest among the 36 giant markets.<\/p>\n
Traffic twins<\/p>\n
The Inland Empire and Sacramento have oddly similar fates.<\/p>\n
These are twin examples of how nearby high-wage regions export their housing challenges to distant suburbs \u2013 whether through long commutes or remote work. If more homes with attainable price tags were built in Southern California\u2019s coastal communities and the Bay Area, fewer folks might have to drive four hours to find affordability.<\/p>\n
It\u2019s not just housing that\u2019s distorted by these workplace anomalies.<\/p>\n
The wealth that commuters earn elsewhere can drive up the cost of numerous everyday goods and services in the places where these inland workers live. It may also promote the development of higher-end shopping and entertainment options.<\/p>\n
Sadly, these workplace divides make California\u2019s already high cost of living even more financially stressful for those earning typical inland wages.<\/p>\n