2016 Sebastopol: Local Economic Profile

2016S O N O M AC O U N T Y

Table of Contents

1. Letter and Highlights

2. Population and Demographics

3. Population and Income Projection

4. Employment

5. Residential Real Estate

6. Real Estate and Construction

7. Consumer Spending and Taxable Sales

8. Education

9. City Data Snapshot

Sebastopol: Local Economic Profile

The Sonoma County Economic Development Board (EDB), in partnership with the Sonoma County Workforce Investment Board (WIB), the City of Sebastopol, and the Sebastopol Cham-ber of Commerce is pleased to present the 2016 Sebastopol Local Economic Profile.

Highlights from this Local Economic Profile include:

■ Sebastopol’s seasonally unadjusted unemployment rate was 3.7% in June 2015, lower than Sonoma County (4.3%), California (6.2%) and the nation (5.5%) for the same month.

■ Between 2000 and 2015, the median household income in Sebastopol grew by 23% to $57,607. Looking into 2020, this growth is expected to continue, with median income rising to $69,252, an increase of 20% from 2015.

■ Median home prices in Sebastopol rose 10% from 2013 to 2014, continuing the upward trend in home prices since 2012. The median home price was $639,000 in 2014, still below the high of $725,000 in 2005 but significantly increased from 2011 and 2012.

■ The average SAT score for a student from the West Sonoma County Union High School in

the 2013-14 school year was 1663. This places the West Sonoma County Union High School district above the county average of 1578, as well as the state average of 1487.

While every effort was made to ensure this report contained up-to-date information, certain data was unavailable at the time this report was released; thus, some figures may reflect years previous to 2015.

Thank you for your interest in the Economic Development Board’s research. For additional information, questions, comments, or suggestions please contact us at (707) 565-7170 or visit www.sonomaedb.org. For other city-specific questions, please visit www.ci.sebastopol.ca.usand/or www.sebastopol.org.

Pamela Chanter Pamela Chanter Chair Economic Development Board

Ben Stone Ben Stone Executive Director Economic Development Board

Board of Directors Pamela Chanter, Chair Richard Carvolth Nick Papdopoulos Michael Nicholls Linda Kachiu Jorge Alcazar Tara Jasper

Michael Tomasini Wayne Leach Terry Garrett

©2015 Sonoma County Economic Development Board. The Economic Development Board (EDB) believes all data contained within this report to be accurate and the most current available, but does not guarantee its accuracy or completeness. Use of data from an outside source does not represent an endorsement of any product or service by the EDB, its members or affiliates. This publication can be made available in alternative formats such as Braille, large print, audiotape, or computer disk. Please direct requests to (707) 565-7170 and allow 72 hours for your request to be processed. This report was prepared by Brian Marland.

www.sonomaedb.org

2

Population and Demographics

The population of Sebastopol in 2015 was 7,490, and according to Environmental Systems Research Institute (ESRI) projections, it is expected to rise 2.5% to 7,680 by 2020. This is on par with the projected population increase of 2.7% for Sonoma County over the same period. From 2000 to 2015, Sebastopol’s population declined 3%.

In 2015, in the population of those 25 and older, 19% of residents had obtained a High School Diploma. This is on track with Sonoma County in the same year with 20% of residents obtaining diplomas. The category of Some College, this consists of individuals who have taken college courses but who have never received their degree. In 2015, about 25% of residents had obtained a Bachelor’s Degree and around 17% had received a Graduate or Professional Degree.

The demographics of Sebastopol by race/ethnicity will barely change between 2010 and 2020, unlike the rest of Sonoma County which will see a 4 percentage point increase in the Hispanic population over this period.

2000 2010 20202015

Total Population,Sebastopol

Thou

sand

s of

Res

iden

ts

2.00

2.75

3.50

4.25

5.00

5.75

6.50

7.25

8.00

2015 Population 25+ by Educational AttainmentSebastopol

25%

24%19%

17%

10%

HS Graduate/GED

Some College

Bachelor’s Degree

Less than 9th Grade

High School, No Diploma

Associate Degree

Graduate/Professional Degree

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

White Hispanic Some Other RaceAlone

American IndianAsian African American

Sebastopol Population byRace/Ethnicity

2010

2015

2020

Population & Income Projection

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The population by age in Sebastopol in 2015 and 2020 followed a wide distribution, and according to Environ-mental Systems Research Institute (ESRI) projections, the 65 and older population is expected to increase the great-est amount by 2020. This is creating a decrease in individuals 10-24 and 45-64 between 2015 and 2020.

Between 2000 and 2015, the median household income in Sebastopol grew by 23% to $57,607. Looking into 2020, this growth is expected to continue, with median income rising to $69,252, an increase of 20% from 2015.

As income in Sebastopol rose between 2000 and 2015, the percentage of households earning less than $35,000 was reduced by 7 percentage points. The fastest growing income range was $75,000-$99,000, and this was followed by gains in the $150,000-$199,999 range.

A trend that remains consistent into 2020 is the shrinking percentage of households earning less than $35,000. The percentage of Sebastopol households in this range will decrease by 6 percentage points from 2015 to 2020. This trend, coupled with the increasing proportion of Sebastopol earning over $75,000, will result in further concentration of households in higher-income tiers.

0%

30%

10%

20%

Population by Age,Sebastopol

0-4 5-9 10-24 25-44 45-64 65+

Age

Per

cent

of P

opul

atio

n

2015

2020

2000 2011 20202015

Median Household Income,Sebastopol

Thou

sand

s of

Dol

lars

0

10

20

30

40

50

60

70

80

Source all: U.S. Census Bureau 2000, 2010; ESRI Business Analyst (www.esri.com)

Households by Income, Sebastopol

2020

20152000

$200

,000+

$150

,000-$

199,9

99

$100

,000-$

149,9

99

$75,0

00-$9

9,999

$50,0

00-$7

4,999

$35,0

00-$4

9,999

$25,0

00-$3

4,999

$15,0

00-$2

4,999

<$15

,000

Per

cent

age

of H

ouse

hold

s

0%

10%

20%

30%

Employment

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Sebastopol’s seasonally unadjusted unemployment rate was 3.7% in June 2015, lower than Sonoma County (4.3%) for the same month. Compared to June of the previous year, Sebastopol’s unemployment rate is down 1 percent-age point from 4.7%. Unemployment remains significantly lower in Sebastopol compared to its five year high of 9.9% in March of 2010. Sebastopol’s unemployment rate is below the state (6.2%), and the nation (5.5%).

Total employment in Sebastopol was 4,400 in June 2015, which is up 2.3% from a year earlier. Sebastopol’s total employment is following an increasing trend and reached its high from September 2008.

The total number of business establishments in 2015 in Sebastopol is 859. Sonoma County has about 25,800 business establishments.

About 55% of Sebastopol’s employed population is in the category of Services, which includes education, health care, tourism and legal services. The second largest sector is Retail Trade, followed by Manufacturing.

Sebastopol Seasonally UnadjustedUnemployment Rate, 2008 - July 2014

2%

4%

6%

8%

10%

'15'14'13'12'11'10'09'08

Source: California Employment Development Department (www.edd.ca.gov)

Sebastopol Seasonally UnadjustedEmployment, 2008 - June 2015

Source: California Employment Development Department (www.edd.ca.gov)

Thou

sand

s of

Em

ploy

ees

3.0

3.3

3.6

3.9

4.2

4.5

'15'14'13'12'11'10'09'08

0 2000 4000 6000 8000 10000

Total Business Establishments2015

Santa Rosa

Petaluma

Rohnert Park

Windsor

City of Sonoma

Healdsburg

Sebastopol

Cotati

Cloverdale

Number of Businesses

0 2000 4000 6000 8000 10000

Total Business Establishments2015

Santa Rosa

Petaluma

Rohnert Park

Windsor

City of Sonoma

Healdsburg

Sebastopol

Cotati

Cloverdale

Number of BusinessesSource: ESRI Business Analyst projections (www.esri.com)

Sebastopol Employed Population 16+ by Industry,2015

55%

13%

10%

6%

Services

Retail Trade

Manufacturing

Information

Finance, Insurance, and Real Estate

Agriculture and Mining

Transportation and Utilities

Construction

Public Administration

Wholesale Trade

6%

4%

Residential Real Estate

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Median home prices in Sebastopol rose 10% from 2013 to 2014, continuing the upward trend in home prices since 2012. The median home price was $639,000 in 2014, still below the high of $725,000 in 2005 but significantly increased from 2011 and 2012.

The total number of houses sold in Sebastopol dropped in 2014, reversing a steady increase from 2007. Home sales are down by 51 for a total of 291, a loss of 17.5% over the past year. This decrease in number of houses sold can be attributed to the rising home prices and lack of inventory.

The average sales price of a home in Sebastopol for 2014 was $742,854. This puts Sebastopol at the higher end of the price spectrum for homes in the area. A home in Sebas-topol costs $170,926 more than the County average.

*All residential real estate data includes the incorporated city limits of Sebastopol as well as the surrounding areas.

Median Price of an Existing Home in Sebastopol, 2003-2014

$0

$100

$200

$300

$400

$500

$600

$700

$800

'14'13'12'11'10'09'08'07'06'05'04'03

Thou

sand

s of

Dol

lars

Total Number of Houses Sold in Sebastopol, 2003-2014

150

200

250

300

350

400

'14'13'12'11'10'09'08'07'06'05'04'03

Source all: Bay Area Real Estate Information Services (www.bareis.com)

Average Sales Price ($ Thousands) by Sub-County Area, 2014County Average Price ($ Thousands)

WindsorCotatiCloverdale$0

$200

$400

$600

$800

$1000

Average Sales Price ($ Thousands)

SonomaSebastopolSanta RosaRohnert ParkPetalumaHealdsburg

Real Estate & Construction

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From 2000 to 2015, Sebastopol’s residential housing vacancy rate increased 4.2 percentage points, compared to 3.4 percentage points gain across the county. Sebastopol’s residential housing vacancy rate is expected to increase from 6.2% in 2015 to 6.6% in 2020.

The values of residential and non-residential building permits in Sebastopol in July 2015 were $1,527,500 and $2,731,970, respectively. Building permit values reflect trends in construction activity and, while residential permit values are low in 2014 and 2015, non-residential permit values have increased.

Sebastopol and Sonoma County,Residential Housing Vacancy*

0%

2%

4%

6%

8%

10%

'20'15'10'00

SebastopolSonoma County

*Vacancy includes both owner and rental units. Source: ESRI Business Analyst (www.esri.com)

Value of Residential & Non-Residential Building Permits in Sebastopol, 2000 - 2015

Source: California Homebuilding Foundation

In M

illio

ns o

f Dol

lars

$0

$3

$6

$9

$12

$15 Non-residential

Residential

'15'14'13'12'11'10'09'08'07'06'05'04'03'02'01'00

Consumer Spending & Taxable Sales

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Sebastopol’s taxable sales showed signs of rebounding with a gain of 6.5% in 2013. Taxable sales reached $142 million dollars in 2013, nearing the peaks of 2001 and 2004, and continuing the growth since they bottomed out in 2009.

Compared to the national average, residents of Sebasto-pol spend more on education, travel and housing. More than 70% of Sebastopol residents’ spending falls under the categories of housing, transportation, other, and food.

Total Taxable Sales in Sebastopol,1997-2013

Source: California Board of Equalization (www.boe.ca.gov)

$90

$120

$150

'13'12'11'10'09'08'07'06'05'04'03'02'01'00'99'98'97

In M

illio

ns o

f Dol

lars

Source: ESRI Business Analyst Online (bao.esri.com)

Consumer Spending by Commodity in Sebastopol, 2015

25%

32%

15%12%

10%

Pensions and Social Security$23,797,167

Cash Contributions/Gifts$8,368,472

Travel$6,765,399

Education$5,391,560

Other*$33,599,129

Transportation$34,029,172

Housing$72,962,597

Entertainment and Recreation$11,002,230

Food$27,917,197

Healthcare$15,705,514

*The Other category includes Apparel and Services, Alcoholic Beverages, Household Operations, Housekeeping Supplies, Household furnishings and equipment, Life/Other Insurance, Miscellaneous, Personal Care Product and Services, and Smoking Products.

30.5%

14.2%14%

11.7%

9.9%

EducaEducationtion

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The percentage of English learners in the Sebastopol Union School District is 13.4%. This includes both the Sebastopol Union Elementary and the West Sonoma County High districts. The ratio of English learners in the Sebastopol Union School District is far below the county average of 23.2%, as well as the state average of 22.3%.

The average SAT score for a student from the West Sonoma County Union High School in the 2013-14 school year was 1663. This places the West Sonoma County Union High School district above the county average of 1578, as well as the state average of 1487.

For a complete listing of the particular schools located in each district, please visit the Sonoma County Office of Education’s website at: http://www.scoe.org/pub/htdocs/finddistrict.html

English Learners by School District,2014-15

Percent of Total Students

Source All: California Department of Education (www.cde.ca.gov)

0% 5% 10% 15% 20% 25% 30% 35% 40%

Healdsburg Unified School District

Sonoma Valley Unified School District

Cloverdale Unified School District

Santa Rosa City Schools

Sonoma County

California

Windsor Unified School District

Cotati-Rohnert Park Unified School District

Sebastopol Union School District

Petaluma City Schools

Cloverd

ale U

nified

Schoo

l Dist

rict

Cotati-R

ohne

rt Park

Unified

Sch

ool D

istric

t

Califor

nia

Healds

burg

Unified

Sch

ool D

istric

t

Sonom

a Vall

ey U

nified

Sch

ool D

istric

t

Wind

sor U

nified

Sch

ool D

istric

t

1300

1390

1480

1570

1660

1750

Sonom

a Cou

nty

Petalum

a Join

t

Union H

igh S

choo

l

Santa

Rosa

High S

choo

l

West S

onoma County

Union High Sch

ool

(Seb

astopol)

Average Total SAT Scores by School District

2013-14 School Year

3-Year Average: 2011-14

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City Data Snapshot

Cloverdale

TotalPopulation

2015

8,858

UnemploymentRate

June 2015

3.7%

MedianHousehold

Income2015

$57,643

AverageSales Priceof a Home

2014

$407,515

Percentageof EnglishLearners2014-15

33.2%

AverageTotal

SAT Scores2013-14

1433

Cotati 7,399 5.7% $62,498 $383,993 19.3% 1551

Healdsburg 11,681 3.7% $61,950 $963,632 38.1% 1512

Petaluma 59,322 3.3% $75,655 $594,029 13.1% 1608

Rohnert Park 41,967 4.5% $58,719 $383,993 19.3% 1551

Santa Rosa 171,827 4.8% $57,602 $508,331 24.4% 1632

Sebastopol

City of Sonoma

7,490

11,202

3.7%

3.9%

$57,607

$59,596

$742,854

$835,899

13.4%

33.5%

1663

1466

Windsor 27,221 3.7% $77,205 $507,146 20.7% 1553

SonomaCounty* 494,431 4.3% $61,807 $571,928 23.2% 1578

Sources and Notes

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Note on Data Sources

The 2016 Sebastopol Local Economic Profile is a brief summary on various demographic, economic and social aspects of Sebastopol. Economic Development Board (EDB) research originates from information available from outside resources and previously published material. The 2016 Sebastopol Local Economic Profile offers partial or compos-ite representations of raw data and cites respective source data sets. For more information, please see the listed sources.

The Local Economic Profile does not provide complete in- depth analyses of all facets of the incorporated cities or the county. The EDB believes all data contained within this report to be accurate and the most current available, but does not guarantee its accuracy or completeness. Use of data from an outside source does not represent an endorsement of any product or service by the EDB, its members or affiliates.

The 2016 Sebastopol Local Economic Profile was developed from national and local data sources. Interested readers are encouraged to contact data source agencies or organizations for further research. Readers are also invited to suggest for future reports by calling (707) 565-7170 or e-mailing edb@sonoma-county.org.

Sources

Bay Area Real Estate Information Services

California Board of Equalization

California Department of Education

California Employment Development Department

California Homebuilding Foundation

ESRI Business Analyst

Keegan and Coppin Company

U.S. Census Bureau

The EDB is pleased to thank the following Signature Sponsors for their support of our important programs.

Economic Development Board141 Stony Circle, Ste. 110Santa Rosa, CA 95401(707)565-7170www.SonomaEDB.org

PRESENTING LEVEL

FOUNDATION LEVEL

PREMIER LEVEL

EXECUTIVE LEVEL

MEDIA LEVEL

Sonoma County Board of Supervisors

EDBECONOMIC DEVELOPMENT BOARD

SONOMA COUNTY

American AgCreditAmerican River BankCity of Santa RosaComcastGeorge Petersen InsuranceKeegan & Coppin Co.

Midstate ConstructionNorBARSonoma County AllianceSummit State BankVantreo InsuranceZainer Rinehart Clarke