Santa Ana Economic Indicators 2025: Growth Opportunities for Local Businesses

At yesterday's Santa Ana GROW Conference, Dr. Wallace Walrod presented his 2025 Economic Indicators report which offers valuable insights into Santa Ana's economic landscape and reveals promising trends and strategic opportunities for businesses across sectors. The conference featured key presentations from Wendy Haase-Roberts, President and CEO of Travel Santa Ana, and Alvaro Nuñez, Santa Ana City Manager, who provided additional context on tourism initiatives and development projects reshaping the city. This comprehensive analysis examines everything from demographic shifts to industry growth patterns, providing a roadmap for business planning in our community.

Strong Income and Population Growth

Perhaps the most encouraging trend is Santa Ana's remarkable income growth. The inflation-adjusted median household income has grown by 34.9% between 2013-2023, significantly outpacing Orange County's 12.7% growth during the same period. While the 2023 median household income in Santa Ana ($85,914) remains below the county average ($110,042), this rapid growth rate indicates our community is making substantial economic progress.

The city's household density continues to increase, reaching 3,042 households per square mile in 2024, more than double Orange County's average density. This population concentration creates natural customer bases for retail, service, and hospitality businesses.

Santa Ana's Youthful Advantage

Dr. Walrod's demographic analysis reveals that Santa Ana possesses a significant competitive advantage through its younger population compared to the rest of Orange County. The age distribution data shows Santa Ana has substantially higher percentages of residents in the 25-34 age bracket (nearly 10% compared to county averages) and stronger representation in the 15-24 age groups. This demographic reality positions Santa Ana as home to Orange County's future workforce, with younger residents who will be entering or advancing in their careers over the next decade. This youthful population creates substantial opportunities for businesses to develop targeted workforce initiatives, including specialized training programs, educational partnerships with local schools and colleges, structured internship pipelines, and mentorship programs that connect experienced professionals with emerging talent. Companies that invest in these workforce development strategies can cultivate skilled employees specifically tailored to their industry needs while building community goodwill. As Dr. Walrod emphasized, Santa Ana's demographic profile represents not just current economic strength but long-term potential for sustainable growth as these younger residents build careers, form households, and increase their purchasing power—particularly when supported by strategic workforce development programs that align with the city's industry strengths.

Business Size and Employment Trends

Santa Ana's business landscape closely mirrors Orange County's, with approximately 86% of businesses employing fewer than 20 workers. Small businesses remain the backbone of our local economy, with notable strength in key industries:

• Manufacturing: Represents the largest sector of Santa Ana's economy with $4.03 billion in gross regional product
• Professional, Scientific, and Technical Services: Showing strong growth at 4.0% (2023-2024)
• Health Care: Growing at 2.9% and expected to be one of the fastest-growing sectors in the coming years

Overall employment in Santa Ana has shown a solid pattern of growth (11.2% from 2013-2023), with total employment reaching 164,936 jobs in 2023. Average annual wages have also increased, though more modestly at 6.6% over the same period.

Sector-Specific Opportunities

Manufacturing Businesses

With manufacturing representing the largest sector of Santa Ana's economy and several specialized manufacturing clusters showing extraordinary strength:

• Medical Device Manufacturers: With an extraordinary location quotient of 54.01 for electromedical apparatus manufacturing, companies should invest in talent development partnerships with local schools.
• Component Suppliers: The high concentration of fluid power equipment (LQ: 75.91) and computer storage manufacturing (LQ: 41.39) creates opportunities for suppliers to establish local operations, reducing supply chain distances.
• Manufacturing Technology Providers: As manufacturing wages show modest growth, businesses offering automation and productivity solutions can target Santa Ana manufacturers looking to optimize operations.

Retail and Food Service

The retail and tourism sectors show impressive post-pandemic recovery. Retail outlets in Santa Ana have increased from 7,433 in 2015 to 9,205 in 2024, with total taxable transactions growing from $931 million to $1.21 billion in the same period:

• Multi-channel Retailers: Businesses that blend physical and digital experiences can capitalize on both the growing density and visitor traffic.
• Food and Beverage Establishments: The 13.3% growth in visitor food spending signals opportunity for restaurants to develop offerings that appeal to both local residents and the substantial Mexican visitor base.
• Specialty Retailers: With median household income growing rapidly, specialty and luxury retailers can target emerging affluent segments within the community.

Healthcare Providers

Healthcare shows consistent strength, with 2.9% recent growth and a projected 3.4% growth rate for 2023-2025:

• Mental Health Services: The extraordinarily high location quotient (11.40) for outpatient mental health centers indicates both existing strength and continued opportunity.
• Preventive Care Providers: As median household incomes grow faster than the county average, services focused on preventive care and wellness have increasing market potential.
• Healthcare Technology: With healthcare employment growing steadily, businesses providing productivity solutions and patient management systems have expanding market opportunities.

Professional Services

Professional, Scientific, and Technical Services saw 4.0% growth (2023-2024) and contribute $2.8 billion to Santa Ana's economy:

• Business Consultants: The increasing educational attainment (bachelor's degree holders growing from 9.1% to 12.3%) creates opportunities for specialized business services.
• Technical Service Providers: Supporting the specialized manufacturing base with engineering, design, and technical services represents a significant opportunity area.
• Financial Services: Despite the sector's minor contraction, the rapidly rising home values create opportunities for mortgage services, financial planning, and wealth management.

Santa Ana on the Map: Tourism Growth and Hospitality Opportunities

Santa Ana’s tourism economy is experiencing a strong resurgence, creating new opportunities for local businesses in hospitality, entertainment, and services. This trend was underscored during the 2025 Santa Ana GROW Conference by Wendy Haase-Roberts, President and CEO of Travel Santa Ana, whose presentation showcased Santa Ana’s rising profile as a regional destination for both domestic and international travelers.

According to the data presented, visitor spending in Santa Ana increased by 9.2% from 2022 to 2023, reaching $414.7 million. Employment in the tourism sector has also rebounded, with 2,980 tourism-related jobs in 2023, closing in on the pre-pandemic high of 3,530. Santa Ana’s walkability, proximity to cultural landmarks, and growing events calendar continue to drive traffic to local businesses.

Some of the most notable opportunities within the tourism and hospitality sector include:

• International Tourism Services: The Anaheim–Santa Ana area is now the third most visited destination for Mexican air travelers to the U.S., capturing nearly 20% of this market. Businesses can benefit by offering culturally tailored experiences, bilingual services, and products that appeal to this high-spending visitor base from regions like Baja California, Jalisco, Michoacán, Guanajuato, and Mexico City.
• Accommodation Providers: Visitor spending on lodging increased by 10.6% from 2022 to 2023. This suggests a continuing demand for hotels, boutique stays, and alternative lodging options, especially those that offer authentic experiences and walkable access to attractions.
• Tour Operators and Event Planners: With the arts and entertainment segment of tourism spending growing by 11.5%, there is rising demand for curated experiences, cultural tours, nightlife events, and family-friendly attractions that go beyond traditional tourism models.

Santa Ana’s tourism strategy is focused not just on attracting more visitors, but on creating economic ripple effects for local entrepreneurs, artists, and service providers. With the city's unique blend of culture, history, and community-driven initiatives, the hospitality sector is positioned for strong, sustained growth in the years ahead.

Building Santa Ana's Future Economic Development Momentum Backed by City Leadership

At the 2025 Santa Ana GROW Conference, City Manager Alvaro Nuñez delivered a compelling presentation highlighting how the City of Santa Ana is actively driving economic growth through an ambitious slate of commercial and residential development projects. His message was clear: Santa Ana is open for business, and the City is committed to accelerating smart, inclusive growth.

With more than 22,000 businesses across its 27 square miles, and situated just 32 miles from Los Angeles, Santa Ana’s strategic location at the heart of Orange County makes it a natural hub for investment. To support this growth, the City has implemented tools like the Planning & Building Express initiative and a recently adopted General Plan (2022)—both of which streamline the development process and provide a clear, forward-thinking framework for land use, zoning, and community investment.

During his presentation, Nuñez outlined a dynamic mix of current and upcoming projects shaping the city's economic future. These include:

🏙️ Mixed-Use and Master-Planned Projects

• Related Bristol (3600 S. Bristol Street) – A major mixed-use development that will introduce new housing, retail, and pedestrian-friendly spaces to South Santa Ana.
• The Village Specific Plan (1561 W. Sunflower Ave.) – A transformational project redefining how residential, retail, and public space interact in one of the city’s key corridors.
• 3rd & Broadway Mixed-Use (201 W. 3rd Street) – Enhancing downtown Santa Ana’s vitality with new housing and ground-floor retail space.

🏘️ Residential Developments

• City Ventures – 125 & 205 S. Harbor Blvd.
• Santa Ana-8 Townhomes – 510 & 520 N. Harbor Blvd.
• Meritage Homes – 2020 E. First Street
• 1st & Harbor – 101 N. Harbor Blvd.

🏢 Commercial and Industrial Investments

• OCERS HQ Building – 1200 N. Tustin Ave.
• South Coast Technology Center – 3100 W. Lake Center Dr.
• OMNI Print – 1540 E. Edinger Ave.
• Harbor Logistics Center – 3100 S. Harbor Blvd.

Together, these projects represent more than just new construction—they are part of a larger strategy to increase housing supply, expand job opportunities, and attract high-quality businesses to Santa Ana. With leadership from Alvaro Núñez and coordination across City departments, Santa Ana is becoming a model for how local governments can facilitate thoughtful, sustainable urban growth.

If you’re a developer, investor, or business owner considering expansion, Santa Ana is ready to partner with you.

Forecasted Growth Areas for 2023-2025

The report identifies the most promising growth industries for Santa Ana over the next three years:

1. Education and Health Services: 3.4% projected growth
2. Leisure and Hospitality: 3.6% projected growth
3. Other Services: 2.3% projected growth
4. Wholesale Trade: 1.9% projected growth
5. Government: 3.2% projected growth

Cross-Sector Strategic Applications

Local businesses can leverage these trends through several strategies:

1. Target growing demographics: Santa Ana's educational attainment is rising, with opportunities to serve an increasingly educated workforce.
2. Leverage international tourism: Develop marketing initiatives targeting Mexican visitors, who show particular interest in the Anaheim-Santa Ana area. The Travel Santa Ana initiatives presented at the conference highlight the top visitor markets from Mexico, including Baja California, Jalisco, Michoacan, Guanajuato, and Mexico City.
3. Support manufacturing clusters: Consider business-to-business services that support our strong manufacturing base, particularly in specialized areas like medical devices and computer hardware.
4. Workforce Development: With unemployment projected to rise slightly (from 56,500 to 69,200 by 2025), businesses that invest in training programs can secure talent advantages.
5. Multilingual Services: Given the significant international visitor base and diverse population, services offered in multiple languages have natural market advantages, as demonstrated by the multilingual website and marketing materials showcased at the GROW Conference.
6. Sustainability Initiatives: As housing density increases, businesses with sustainable practices will appeal to increasingly environmentally conscious consumers.

Industry Clusters: Santa Ana's Extraordinary Competitive Edge

Santa Ana has developed specialized industry concentrations that aren't just above average—they're off the charts. While most cities consider a location quotient of 2.0 to be specialized, Santa Ana boasts truly extraordinary numbers:

• Medical Device Manufacturing: With a staggering 54 times the national concentration, Santa Ana has become a powerhouse in electromedical apparatus manufacturing (LQ: 54.01). This extreme density has created a self-reinforcing ecosystem where specialized suppliers, engineering talent, and distribution channels converge to create unmatched competitive advantages.
• Fluid Power Equipment: Featuring the highest concentration in the city at nearly 76 times the national average (LQ: 75.91), this pump and motor manufacturing cluster represents an unprecedented opportunity for businesses throughout the supply chain—from raw materials to components to specialized services.
• Computer Hardware: Santa Ana's storage device manufacturing sector operates at 41 times the national concentration (LQ: 41.39), powering a technology manufacturing hub that creates opportunities for everything from precision tooling to specialized engineering services.
• Mental Health Services: With outpatient centers at 11 times the national average (LQ: 11.40), Santa Ana has established itself as a healthcare leader with streamlined regulatory pathways, established referral networks, and concentrated expertise.

For businesses, these remarkable concentrations create immediate opportunities: tap into established supply chains, access specialized talent pools, leverage shared infrastructure, and benefit from the knowledge spillovers that naturally occur within these intense industry clusters. Whether your business operates directly in these sectors or provides supporting products and services, Santa Ana offers ready-made ecosystems that would take decades and millions of dollars to develop elsewhere.

The message is clear: these aren't just statistics—they're invitations to plug into thriving business ecosystems with built-in advantages that can dramatically accelerate your company's growth and profitability.

The Santa Ana Chamber of Commerce is committed to helping local businesses translate these economic indicators into actionable strategies. For more information or to join the Santa Ana Chamber or assistance interpreting this data for your specific business, please contact  the Santa Ana Chamber of Commerce at (714) 541-5353

Data sources: City of Santa Ana 2025 Economic Indicators report by Dr. Wallace Walrod (March 27, 2025), Santa Ana Real Estate Development Report  by Santa Ana City Manager Alvaro Nuñez and Travel Santa Ana presentation by Wendy Haase-Roberts, President & CEO of Travel Santa Ana.