Los Angeles County is expected to gain nearly 133,000 jobs between 2016 and 2021, according to a report released Thursday, but it also shows that inflation-adjusted household incomes are 4.5 percent below where they were in 1990.

Those conflicting revelations are included in an economic update prepared by the Los Angeles County Economic Development Corp.’s Institute for Applied Economics. The report will be included as part of an economic summit that’s being held Thursday at the L.A. Downtown Hotel. Presented by the Southern California Association of Governments, the theme of the event is “The Cost of Not Housing.”

High housing costs

It’s aptly named because high housing and rental costs and a shortage of available homes have long hampered Southern California’s economic momentum. The LAEDC report notes that California has one of the tightest housing markets in the nation — and L.A. County is no exception.

In 2016, the median price for a new home in L.A. County was s $583,807, considerably more than the 2007 pre-recession peak of $537,011. The number of new residential units permitted hit its lowest level in 2009, dropping to 5,600 new units. Market activity has since picked up, reaching 19,940 units in 2016. But the number of permits for new home construction still remains below pre-recession peak levels in 2004 to 2006.

The California Association of Realtors‘ housing affordability index shows that a significantly larger portion of L.A. County households can now afford homes than before. In 2006 and 2007, only 11 percent of the county’s households could afford a new home. Since 2013, that has averaged 30 percent.

But while some homes might be considered “affordable” by pre-recession standards, they are considerably less so when compared with the nation as a whole.

“California is definitely more expensive than the rest of the nation,” said Jordan Levine, a senior economist with CAR. “Home prices continue to outstrip incomes. We’re not at an all-time low right now, but housing prices are still high, and you see that reflected in the homeownership numbers.”

Inflation steals purchasing power

The LAEDC report shows that household incomes have actually risen steadily for the past 25 years, from $34,965 in 1990 to $61,338 in 2016. But when inflation is factored in they’re down 4.5 percent below the 1990 level. That has eroded the purchasing power of L.A. County residents for two decades.

That’s clearly evidenced during the holiday season, when shoppers pull back on their spending for gifts, decorations, travel and other expenses.

Economist Somjita Mitra, director of the LAEDC’s Institute of Applied Economics, said consumers in Southern California are grappling with rising costs in a variety of areas.

“I think we all realize that money doesn’t go as far as it used to,” she said. “Rents and housing prices have increased, many consumer goods are more expensive and health care costs have risen. People have to allocate their money in different ways. You might not be able to save as much or you might not travel as much as you used to.”

Education plays a role

Lower household incomes are directly tied to lower levels of education.

The LAEDC report notes that the median annual income for county residents with just a high school diploma was $27,330 last year, while the median for those with a bachelor’s degree was $52,003. The situation is made worse by the fact that people with lower levels of education often end up in low-paying jobs, such as telemarketing or food service — jobs that are in danger of being replaced through automation.

Still, poverty rates keep falling. The county’s individual poverty rate currently stands at 16.3 percent, down 2.8 percentage points from the peak of 19.1 percent reached in 2012.

The employment picture

L.A. County employment is projected to grow at an average annual rate of 0.7 percent over the next five years, adding 133,000 jobs across a range of industries. Here are some of the biggest drivers:

Health services is expected to grow at 5.9 percent over the next five years, adding nearly 42,000 jobs. Administrative support, which includes temporary employment, is expected to grow 10.9 percent with more than 29,000 new jobs. Accommodation and food services will add nearly 26,000 and education will boost it payrolls by 23,000.