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Is it good for San Diego's population growth to be fueled largely by immigration?

Phillip Molnar, The San Diego Union-Tribune on

Published in Business News

San Diego County’s population grew by 0.4% last year, bringing the total to 3,298,799, said the latest U.S. Census Bureau data.

While the county’s natural growth from more babies being born yielded a net 12,600 new residents, it wasn’t nearly enough to make up for the almost 24,000 more people who left the county than moved in between July 2023 and July 2024.

Making up for that loss — and a little more — was the county’s net gain of 24,226 immigrants, who came into the country both legally and illegally.

Despite one of the highest costs of living in the U.S., San Diego County keeps seeing people move here. Immigration is one way some nations, such as Canada, have been able to sustain their population.

Q: Is it good for San Diego that its population growth is being fueled largely by immigration?

Economists

James Hamilton, UC San Diego

No: An influx of new residents does not make the people who are already here better off. Added population puts more pressure on house prices and makes the roads more crowded. The focus should be on importing jobs, not people. Higher paying jobs may attract new high-skilled people to move in. To the extent that happens, it will boost the tax base and can benefit everybody who is already here. But increasing the population should not be a goal by itself.

Norm Miller, University of San Diego

No: Net losses among our existing population base are a negative long-term economic signal. Immigration, per se, might be good or bad depending on the arrival skill set. While generally hardworking, many immigrants arrive here with low skill sets and they will not be able to afford housing nor support the higher wage industries such as life science, health and defense industries. The current population trends will only exacerbate the housing crisis.

David Ely, San Diego State University

No: The greatest concern in the latest population numbers is that more residents are choosing to leave the county than people living elsewhere in the U.S. are moving here. This is a continuation of a troubling pattern. The cost of living in San Diego, most notably housing costs, is causing too many residents to leave. Immigration benefits the county’s economy by offsetting domestic out-migration and bringing more working-age individuals into the local labor force.

Caroline Freund, UC San Diego School of Global Policy and Strategy

No: While foreign immigration is good, it is risky to rely on it as the main source of population growth. A balance between births, domestic migration and foreign migration would be better. Of special concern is outward domestic migration and the growing reluctance of U.S. residents to move here because of the high cost of living. It has become a huge challenge to lure talent and maintain talent, which is also critical to regional growth.

Kelly Cunningham, San Diego Institute for Economic Research

 

Yes: Positive immigration growth is better than population decline that is otherwise happening. Population reduction is not economically desirable as the workforce decreases from people moving away, birth rate decline and the baby boomer generation retiring. Although challenging to assimilate, integrate and acculturate differing immigrant cultures and lifestyles, when people are able to freely associate, trade and move about, they almost always improve their own and each other’s lives by mutually beneficial actions and relationships in other productive activities.

Executives

Bob Rauch, R.A. Rauch & Associates

No: While immigration has shaped cities like San Diego and brings new and diverse skills and cultural enrichment, illegal immigration is not the way to grow. If not managed well, the strain on resources will stress housing, health care and education systems. Affordability challenges, job training needs and social support systems will create more challenges than opportunities. We need reduced regulation and business growth to fuel population growth and legal immigrants who are vetted and welcomed.

Austin Neudecker, Weave Growth

No: Immigrants’ economic and cultural contributions are cornerstones of what makes San Diego great. That said, relying heavily on immigration for population growth is risky amidst shifting federal policies. Current and future restrictions could disrupt labor supply, housing demand and consumption. A more balanced growth strategy that retains locals and attracts domestic migration in combination with foreign immigration could increase our resilience against external volatility.

Jamie Moraga, Franklin Revere

No: While immigration helps fill workforce gaps, the reality is birth rates are falling, and residents are leaving due to the high cost of living for housing, gas and utilities. California’s unfriendly business environment, stifling regulations and high taxes compound the issue. This population decline has been ongoing for years, with census data confirming the trend. Many are reconsidering if the “Sunshine Tax” is worth it or if lower-cost states offer better quality of life.

Phil Blair, Manpower

No: To grow a dynamic and innovative community we need highly educated residents and venture funds to support their exciting new ideas. Unfortunately, new immigrants typically do not meet these criteria. They are able to fill entry-level jobs that need to be done, but it will be years before they add the needed dynamics to our community.

Gary London, London Moeder Advisors

No: Our region needs foreign immigration, but we critically must plug up domestic outmigration. We are mostly losing family-aged, middle-income households due to high housing costs triggered by shortages. I would also caution that international immigration is likely to trend significantly downward due to the hardening of the border. Soon we may be in negative growth territory. And that is a problem particularly for the tourism and construction sectors, while jeopardizing our regional economy.

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