Beacon Economics: San Francisco Is California’s Strongest Economy

In a 113 page report issued today Beacon Economics, a research firm with offices San Rafael and Los Angeles, said that the three Bay Area counties of San Francisco, Marin and San Mateo are the strongest economies in California, even though the state and these ares are not immune from the economic downturn.

The forecast tries to predict economic conditions in the three-county zone through the first quarter of 2010 and suggests that:

— Home prices will fall roughly 25 percent from their peak.

— Taxable sales will drop by 10 percent across the region.

— Payrolls will shrink by 2.5 percent over the next two years.

— Rental rates are likely to continue to rise, particularly in San Francisco, where 60 percent of households are renters.