NABE Silicon Valley RoundTable

NABE Silicon Valley RoundTable

The San Francisco Bay Area Economic Outlook:  Profits Up, Job Growth Sideways -- When will the good times return for Bay Area Workers?


Anne Ramstetter Wenzel, Econosystems

Meeting date:  June 14, 2005

Anne Ramstetter Wenzel is founder of Econosystems, a Menlo Park based economics and market research firm serving small businesses and independent consultants nationwide.  Prior to founding Econosystems in 1999, Ms. Wenzel worked for 14 years as staff economist for the Chemical Marketing Research Center at SRI International in Menlo Park.  While at SRI, she helped launch The Economic Environment of the Chemical Industry, a quarterly global economic outlook supplement for SRIís Chemical Economics Handbook.  Ms. Wenzel has a B.A. and an M.A. in economics from San Francisco State University, last year served on the Home-based Business Roundtable for the Small Business Administration in Washington, D.C., and received the 2002 Forecasting Accuracy Award from Arizona State Universityís Bank One Economic Outlook Center in July 2003.  In December 2004, she officially launched The San Francisco Bay Area Economic Outlook as a paid subscription service for investors, financial professionals and business leaders.

Lofty Housing Prices

Housing for employees in Silicon Valley and the Bay Area in general expanded over recent years to areas that are remote from the bay, including Santa Cruz and beyond on the coast, Modesto to the southeast, Livermore and beyond to the east, and Cordelia, Fairfield and beyond to the northeast. These locations should feel the downturn before the Bay Area because they are less desirable in terms of transportation and they were developed later.
This hypothesis may explain a part of the seeming resistance of Bay Area housing prices to the employment downturn. I hope someone has some data to support or refute the conjecture.

-- Al Moon, July 1, 2005  Reply
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