Sales Tax

A key barometer of the Morgan Hill economy is sales tax receipts.  Many local businesses report sales tax receipts on a monthly basis to the State of California.  The City share of sales tax (1%) is received on a quarterly basis from the State of California.  Comparing 2018 to 2019, the City showed a 3% decline in taxable receipts.

Industries that saw the largest declines:

• Auto and Transportation sector (largest sales tax segment for Morgan Hill)

• Fuel and Service Stations

• State and County Pools

Some bright spots for Morgan Hill included:

• Food and Drugs

• Building and Construction

Interestingly enough, the County of Santa Clara as a whole showed a growth of 5.7% over the same period.

Unemployment Rate in Morgan is under 2.5%

The City of Morgan Hill continues to have a tight labor market.  The current unemployment rate for Morgan Hill is 2.4% which translates into approximately 600 individual that are able and willing to work who are unable to secure employment.  The low unemployment rate continues to be mismatched with the local job market in which there are hundreds of job openings.

Using online search platforms including Indeed, Monster, Linkedin and Craigslist, the number of job openings at Morgan Hill establishments exceeds 300 openings upwards of 500 for the respective platforms.

Morgan Hill Housing Market

While the number of single family homes sold in Morgan Hill in 2019 was flat, the average sales price increased by 2% or $22,000. Both number of new listings and number of days on the market trended up.

For condominiums and townhouses the story was a little different.  The number of homes sold increased by only 5, the average sales price decreased 1% or $7,000.  The number of days on the market rose from 22 to 45.

Relative to the rest of Santa Clara County, Morgan Hill single family homes remain about 20% less expensive than many other Silicon Valley cities.

Sources: Santa Clara County Association of Realtors, HdLCompanies/CDFTA, State of California Employment Development Department (EDD)