The year 2025 has come to a close, and with it comes an opportunity to take stock of Santa Barbara County's economic trajectory. How did our region perform compared to California and the United States? What trends accelerated, and which reversed course? This Economic Recap will examine the key economic indicators that defined Santa Barbara County in 2025, from labor markets and demographic shifts to housing and industry trends, providing you with a clear picture of where we stand as we enter 2026.

Key Takeaways for Santa Barbara County:

• Average Earnings Per Job in 2023 was $96,000 (latest data available).
• As of 2025 the region's population declined by 1.1% since 2020, falling by 5,145. Population is expected to increase by 0.2% between 2025 and 2030, adding 1,021.
• From 2020 to 2025, jobs increased by 4.8% in Santa Barbara County, CA from 236,041 to 247,399. This change fell short of the national growth rate of 10.6% by 5.8%. As the number of jobs increased, the labor force participation rate increased from 59.5% to 65.0% between 2020 and 2025.
• Concerning educational attainment, 21.4% of Santa Barbara County, CA residents possess a Bachelor's Degree (0.4% below the national average), and 8.6% hold an Associate's Degree (0.3% below the national average).
• The top three industries in 2025 are Restaurants and Other Eating Places, Crop Production, and Education and Hospitals (Local Government).

Employment

Santa Barbara County's seasonally adjusted unemployment rate stood at 4.8% in December 2025, showing resilience amid broader economic shifts. The county has maintained a consistently moderate unemployment level throughout 2024 and 2025, fluctuating between 4.3% and 5.0%. This places Santa Barbara County between the national rate (4.4%) and California's statewide rate (5.3%). After reaching historic lows around 3.4% in mid-2022, the county has experienced a gradual uptick in unemployment, mirroring statewide trends but remaining below California's overall rate—a pattern that has held steady since the pandemic recovery period.

Employment by Industry

In 2025, the industries that employed the most people in Santa Barbara County were Government (41,022 at 16.6% of total employment), Agriculture, Forestry, Fishing and Hunting (31,918 at 12.9%), Health Care and Social Assistance (30,614 at 12.4%), Accommodation and Food Services (24,831 at 10%), and Retail Trade (19,049 at 7.7%).

In Santa Barbara County, the industries with the largest percent changes in employment from 2024 to 2025 were Mining, Quarrying, and Oil and Gas Extraction (+12.2%), Administrative and Support and Waste Management and Remediation Services (-7%), Management of Companies and Enterprises (-5.3%), Finance and Insurance (-4.7%), and Utilities (+2.8%). You can explore the California and United States Industries by clicking on their respective tabs.

Housing

Santa Barbara County's Zillow Home Value Index stayed relatively constant between December 2024 and December 2025 at roughly $965,000. This represents a 261% increase from January 2000, when the home value was $267,000. Throughout the 25-year period, Santa Barbara County home values have consistently exceeded both California and national averages, currently 28% higher than California prices ($755,000 in December 2025) and 28% higher than the national prices ($357,000 in December 2025).

Santa Barbara County's typical rent (as defined by ZORI) reached $3,431 in December 2025, up from $3,347 in December 2024, representing a 2.5% year-over-year increase. Since January 2015, when the rent index stood at $1,738, Santa Barbara County rents have increased 97%, nearly doubling over the decade. Santa Barbara County rents significantly exceed both state and national levels, trading at 149% of the California index ($2,304 in December 2025) and 181% of the national index ($1,901 in December 2025). While California rents have declined 1.7% from their December 2024 peak, Santa Barbara County has maintained upward momentum.

Demographics

The most common Race/Ethnicity in the Santa Barbara County in 2025 was “White, Hispanic,” which comprised 45% of the county’s population. This group also represents 36% of Californians and 17% of US residents. In Santa Barbara County, there was a 2% decrease in the number of people who reported being White, Non-Hispanics between 2024 and 2025. There was also a 2% decrease for this group for the state of California. The US saw a negligible change in this age group. See the tables below to explore more demographic changes.

In 2025, Santa Barbara County had a larger share of its population in the ages between 15 and 24, compared to California and the country. This is unsurprising given the presence of the universities and colleges in the county. Almost 600 Santa Barbara County residents aged 30-39 left the county between from 2024 to 2025 and over 65,500 left the state of California. See the tables below for more details.

Santa Barbara County's population remained essentially flat in 2025, declining by just 1,562 residents to reach 442,938—a change of less than 1%. This stability stands in contrast to broader California trends, where the state lost over 242,000 residents during the same period, a 1% decline. Nationally, population grew modestly, adding 1.5 million people.

The gender balance in the county remained nearly even, with females comprising 50.07% of the 2025 population (221,771) and males 49.93% (221,167). Both groups saw slight declines from 2024 levels.

The county's racial and ethnic composition continues to evolve. The Hispanic population grew across most categories, with White, Hispanic residents increasing by 1,617 people to reach 199,141—now representing 44.96% of the county's population. Meanwhile, the White, Non-Hispanic population declined by 2,901 residents to 176,104, dropping from 40.3% to 39.76% of the total population.

Several smaller demographic groups experienced modest declines of about 2% from 2024 to 2025, including Black, Non-Hispanic residents (down 155 to 7,065), American Indian or Alaskan Native populations (both Hispanic and Non-Hispanic), and Native Hawaiian or Pacific Islander groups. The Asian, Non-Hispanic population remained stable at 25,565, representing 5.77% of county residents.

Perhaps the most significant demographic shift is the county's aging population. The youngest cohorts are shrinking—the 5 to 9 years age group declined by 682 children (3%), while the 15 to 19 years cohort dropped by 739 teens (2%). In contrast, senior populations are growing robustly. Residents aged 75 to 79 increased by 665 people (4%), those 80 to 84 grew by 405 (4%), and those 85 and over expanded by 288 (3%).

The 20 to 24 age group, likely influenced by the county's university population, showed modest growth of 290 residents. However, working-age populations in their 30s, 40s, and 50s generally declined or remained flat, suggesting potential challenges for workforce development and economic growth in the coming years.

These demographic shifts—a stable overall population masking significant changes in age structure and ethnic composition—will have important implications for housing demand, workforce availability, healthcare needs, and public services in Santa Barbara County for years to come.

Santa Barbara County Inbound and Outbound Migration:

The table below analyzes past and current residents of Santa Barbara County, CA. The left column shows residents of other counties migrating to Santa Barbara County, CA. The right column shows residents migrating from Santa Barbara County, CA to other counties.

As of 2022, 1,497 people have migrated from Los Angeles County, CA to Santa Barbara County, CA. In the same year, 1,382 people left Santa Barbara County, CA migrating to Ventura County, CA. The total Net Migration for Santa Barbara County, CA in 2022 was -4,396.

An EFP Update

2025 was a landmark year for the UCSB Economic Forecast Project, marked by expanded research, deepened community engagement, and record-breaking attendance at our flagship event.

Our team grew and evolved throughout the year. We had 11 talented undergraduate interns throughout the year, five of whom have continued to help with our ongoing research efforts. We also proudly watched two graduate student researchers cross the finish line of their Economics PhD programs, ready to take their expertise into the wider world, and then welcomed two new graduate students ready to dive in.

The research kept flowing. Our team produced five in-depth Community Policy Reports tackling pressing regional issues like rent control, three IMPLAN economic impact studies quantifying the effects of local developments, and two comprehensive Fair Market Rent Surveys that are helping California Housing Authorities make data-driven decisions about rental assistance programs.

Executive Director Peter Rupert is still a familiar face across Santa Barbara County, delivering 16 presentations to civic groups, business associations, and community organizations eager to understand local economic trends. But perhaps the highlight of our year came on May 21st, 2025, when we filled the Granada Theatre with nearly 1,200 attendees for our annual Economic Summit—the largest gathering in the project's history, bringing together the region's most influential decision-makers for crucial conversations about our economic future.