Economic summary

ECONOMIC BASE ANALYSIS

This section provides highlights of existing and projected demographic characteristics that influence the economic development potential of Riverside County and its subregions. This summary has been extracted from a more detailed report prepared for the EDSP process (Analysis of Key Datasets for Economic Development Strategic Plan, Appendix E).

Total Population

2,449,909

Riverside County

Median Age

36.7

Riverside County

Percent Bachelor's Degree or Higher

25%

Riverside County

Median Household Income

$89,672

Riverside County

Key Demographic & Socioeconomic Characteristics

Labor Force Efficiency and Commuting Patterns

Patterns in labor force efficiency and commuting behavior point to strategic opportunities for strengthening business development and improving livability across the region. The variation in commute times across subregions presents a strategic opportunity to align business growth with workforce accessibility, particularly in areas with shorter commutes that can support local employment hubs.

  • 46.5% of Riverside County residents work within the county, while 53.5% commute out, creating a significant resource for local job creation.
  • Subregional gaps are evident:
    • Pass Area: 16.6% of residents work locally, with the remainder commuting within the region or beyond.
    • Coachella Valley and Blythe: Highest local employment at 59.7%.
  • Commute times above average:
    • County average: 33.8 minutes, above state (28.98 minutes) and national (26.57 minutes) benchmarks.
    • Southwest Subregion: Highest commute at 38.3 minutes.
    • Coachella Valley and Blythe: Lowest at 22.5 minutes.

INDUSTRY SECTOR EMPLOYMENT

Riverside County benefits from a robust foundation in essential services and trade-related industries, with logistics and warehousing standing out as strategic assets. Meanwhile, professional services and manufacturing are well-positioned for expansion, offering potential to attract investment and elevate the region’s economic profile.

  • Educational Services, Healthcare and Social Assistance dominate employment at 21.1%, with Pass Area (26.6%) and Southwest (22.9%) leading.
  • Construction (9.3%) and Retail Trade (12.1%) are also major employers.
  • Transportation and Logistics (7.7%) is a standout sector, especially in logistics-heavy subregions.
  • Professional Services (10.5%) and Manufacturing (8.1%) show potential for expansion.

HOUSING

High rates of homeownership signal a stable and invested population, which is a key asset for long-term economic development. Low vacancy rates across most subregions reflect strong housing demand, while seasonal patterns in Coachella Valley and Blythe offer unique opportunities for tourism and second-home markets. Tackling affordability challenges will be essential to sustaining livability and workforce retention.

  • Owner-occupied housing is high at 68.9%, the strongest among peer counties.
  • Vacancy rates are low across most subregions, except Coachella Valley and Blythe (26.9%), due to seasonal housing.
  • Housing cost burden (50%+ of income) remains elevated:
    • Countywide: 14.06% of households.
    • Hemet/San Jacinto saw an increase from 14.95% to 15.98% (2019–2023).

EDUCATION & WORKFORCE READINESS

Riverside County’s growing base of college-educated residents, especially in the Southwest Subregion, provides a strong foundation for workforce development. Expanding STEM education and improving rural access to advanced training facilities will help unlock the region’s full innovation potential and support high-growth industries.

  • Bachelor’s degree or higher: 25.1% countywide
    • Southwest Subregion leads at 29.6%.
    • Hemet/San Jacinto lags at 14.7%.
  • STEM degrees are underrepresented:
    • Only 34.4% of bachelor’s holders have Science & Engineering majors—lowest among peer counties.
  • Workforce development gaps:
    • Limited access to advanced labs and training in rural areas.
    • Weak articulation between high school pathways and college-level programs.

AGE & DEMOGRAPHICS

Riverside County’s age diversity, from a young and growing population in the Northwest to a mature community in Coachella Valley and Blythe, offers a unique opportunity to design multi-generational strategies that enhance livability, support workforce development and meet the evolving needs of residents across all stages of life.

  • Median age: 36.7 years, younger than most peer counties.
  • Coachella Valley & Blythe: Highest share of residents aged 65+ (24.2%) and highest median age (44.2).
  • Northwest Subregion: Youngest population, with 36.1% under age 25.

POPULATION & EMPLOYMENT GROWTH FORECASTS (2020 – 2035) 

Riverside County is projected to lead Southern California in population and employment growth through 2035, outpacing neighboring counties and reinforcing its role as a regional economic engine. Subregional trends highlight strong momentum in the Southwest and Northwest, driven by housing, amenities, and transportation access. Moderate growth in the Pass Area and revitalization potential in Hemet/San Jacinto offer room for strategic investment, while Coachella Valley and Blythe benefit from sector-specific drivers like tourism, agriculture, and clean energy.

Countywide Trends

  • Riverside County is projected to experience robust growth in both population and employment over the 15-year projection period.
  • This growth is expected to outpace neighboring counties like Imperial and San Bernardino, positioning Riverside County as a key driver of Southern California’s economic expansion over the next 15+ years.

Subregional Population Growth Highlights

  • Southwest Subregion: Highest projected population growth, driven by housing development and quality-of-life amenities.
  • Northwest Subregion: Strong growth due to proximity to major transportation corridors and urban centers.
  • Pass Area: Moderate growth, with potential for expansion tied to infrastructure upgrades.
  • Hemet/San Jacinto: Slower population growth, but opportunities exist through targeted revitalization and housing affordability.
  • Coachella Valley and Blythe: Growth influenced by tourism, agriculture, and clean energy investments.