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Man
<br />cohort is the 20 to 29 age bracket at 14.5% of the population. These are individuals embarking on their careers and
<br />preparing to become more active participants in the workforce. How these two cohorts are strategically managed will
<br />influence the economy of Orange County for many years to come, Orange County, like many other regions, is turning
<br />older. In addition to preparing for the retirement needs of the 45 to 54 age bracket, the 55 and over age group has
<br />immediate needs. This cohort increased from 17.7% of the county population in 2000 to 25.6% in 2015. Over this
<br />same period, the county's working -age population, defined as those aged 25 to 54, decreased from 45.9% to 42.1 %.
<br />These trends are expected to continue; while the Department of Finance predicts that other California counties will
<br />also experience growing older populations by 2060, Orange County is the only county expected to experience a
<br />simultaneous Increase In older populations and decrease in younger and working -age populations.
<br />Education Orange County's workforce tends to be more educated, but has a higher portion of Individuals with less
<br />than a high school education when compared to the overall U,S, population. More than 38% of individuals in Orange
<br />County have a bachelor's or graduate degree, compared to 32% for the U.S. However, 15.9% of individuals over 25
<br />years old have not received a high school diploma, which is significantly higher than 11.6% for the entire U.S. Only
<br />17.3% of Orange County individuals have graduated high school, much lower than the 30% of high school graduates
<br />in the general population. The middle skills segment, however, is on par with the U.S., constituting 28% of the
<br />workforce. Educational attainment correlates directly with median earnings and poverty rates. Individuals in Orange
<br />County with a bachelor's or higher degree have a poverty rate of 5.3% and median earnings of $72,000. Those with
<br />less than a high school diploma have poverty rates that are four times higher at 22.3% and earn less than one -third
<br />of their well- educated counterparts at $21,229,
<br />Income Median household income totaled $78,428 in 2015, nearly $14,000 higher than the state median household
<br />income and over $22,000 higher than the national median household income. What is troublesome is that income
<br />growth in Orange County has slowed, lagging behind both California and the rest of the nation. Over the past year,
<br />the median household Income in Orange County grew by 2.8 %, 1.4 %age points below state -level growth and 1.2
<br />percentage points below nation -wide growth. Since 2010, median household income in the county expanded by
<br />10.6 %, while the state and nation registered growth rates of 11.8% and 11.4 %, respectively,
<br />Income Distribution The largest groups of earners are those in the middle, with 29% of individuals earning
<br />between $50,000 and $99,999 per year. The next largest group are those that are earning more than $150,000 per
<br />year. In Orange County, more than one in five individuals are in the top bracket of earners. Reflecting household
<br />income growth trends, per capita income growth has experienced year- over -year increases since 2010, averaging an
<br />increase of 2.6% annually, Per capita income grew from $31,373 to $35,651 in 2015, an increase of 116 %.
<br />Housing The region is known for one of the highest real estate prices in the country, impacting economic
<br />prospects. in June 2016, the median sales price of existing single- family homes in Orange County was $759,490.
<br />This is more than three times the U.S. median home price of $240,800. According to the California Association of
<br />Realtors, only 22% of households can afford the median priced home in Orange County, compared to 57%
<br />nationwide. Rents have also climbed to unaffordable levels. Average asking rents in the first quarter of 2016 showed
<br />that Orange County ranks among the highest in the nation at $1,753 per month. Increases in cost -of- living, rent, and
<br />home prices have outpaced income growth in some county communities. This has not only served to reduce potential
<br />migration into the region, but in fact has led many 25 to 34 year olds to permanently leave Orange County, thus
<br />limiting the county's ability to attract and retain a talented workforce and contributing to the growing skills gap.
<br />Commute Patterns The cost and lack of housing options in Orange County, combined with a robust network of
<br />transportation corridors and transportation options, results in significant commute patterns into and out of the region.
<br />According to the U.S. Census Bureau Origin- Destination Employment Statistics, in the 2nd quarter of 2002 -2014,
<br />there were:
<br />0 810,174 individuals living and employed in the OC Region
<br />0 592,709 individuals commuting Into Orange County (Inflow) but living out of the OC Region
<br />0 450,241 Orange County residents commuting out of the area (outflow) to work in areas outside of the region
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