San Diego is the best geographic location in the United States for business and career growth according to Forbes magazine and the Milken Institute in Santa Monica. San Diego has previously been ranked in the top ten.

The survey based on job strength and wage growth found that companies in the region were able to add workers and increase salaries even when other regions struggled with a recession.

San Diego's success is the result of a diverse economy with a mixture of technology, tourism- and defense-related industries, according to Ross DeVol, a Milken Institute economist.

Local leaders say it's proof of a regional renaissance where high-paying tech jobs are replacing the defense-related jobs that disappeared in the early 90s.

The region has a 3.8 percent unemployment rate compared with a national rate of 6.1 percent.

"San Diego's success shows its diversity and not just tech diversity," said DeVol. "San Diego's just been consistently adding jobs even during a recession."

Although businesses have traditionally sought out low cost locations with low pay scales, many technology companies seek locations that are attractive to highly skilled workers. Areas with technology-based business tend to do well because they bring money into the region and pull the rest of the economy along with them, he said.

This kind of survey isn't just about bragging rights. It can have tangible benefits for the region, said Julie Meier Wright, president of the San Diego Regional Economic Corp. It also attracts leading world-class companies to take a look at San Diego and helps local companies recruit scarce talent.

Nationwide perception of San Diego as a business center has helped the region attract companies such as Novartis, Pfizer and Marck to have research facilities in the region.

This report adds continuing confidence to real estate investors as they buy up existing residential properties at a faster rate. Owners that have small residential rental properties in well-located neighborhoods throughout San Diego should be able to plan on steady value appreciation for the next two-to three years.

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Some information provided courtesy of the San Diego Union Tribune, "County tops for business and careers, survey finds" by Thomas Kupper, May 10, 2002.