Market analysis: Temecula is a regional job center with growth opportunities in industrial and higher‑wage industries

Economic and Planning Systems (EPS) presented an economic baseline for the general plan update, outlining demographics, housing and commercial-market findings that will inform land‑use alternatives.

Julie Cooper (EPS) said Temecula’s growth is slowing but the city remains a regional employment center: EPS reported a jobs-to-household ratio well over 1 and about 10,000 more people commuting into the city than leaving. Andrew Williams (EPS) said housing prices in Temecula are about 15% above the project trade area and roughly 35% above county averages but have stabilized since 2022.

EPS identified industry strengths and opportunities: transportation and warehousing, construction, accommodation and health care employ many residents, while the city hosts a disproportionate share of industrial/flex and retail inventory in the trade area. Cooper said EPS sees opportunity to attract higher‑wage industries that employ local residents and to grow industrial/flex space and select office uses, while noting the trade area will be competitive.

Committee members asked about the trade-area definition and whether it captured fast-growing nearby communities such as Hemet and San Jacinto; EPS defended its chosen geography as consistent with prior city studies but acknowledged alternate trade-area boundaries could provide additional perspective. EPS recommended pairing market data with community preferences to define where and what typologies to encourage in the land‑use update.

EPS will provide maps and follow-up material to support the February land‑use conversation.