Report authors say San Diego would have been ranked higher had it not been for two issues: unaffordable housing and lackluster basic education offset growth in patent development, venture capital spending, superior water quality and infrastructure investment, putting the county the 9th spot among the 21 major U.S. metropolitan areas evaluated.

The Sustainable Competitiveness Index found Austin, Texas, the most competitive in the nation, followed by Raleigh, Minneapolis andDenver.

The regional growth agency will update the index and ranking every January. SANDAG officials point out that the report indicates that lack of affordable housing does harm a region's economic attractiveness.