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Lathrop is one of California's fastest growing cities. Here's why | Dollars & Sense

It comes as California experienced positive population growth in 2023 for the first time since 2020.

LATHROP, Calif. — A new report shows the fastest-growing city in California is in San Joaquin County. Lathrop ranks #1, according to the state’s finance department.

It comes as California experienced positive population growth in 2023 for the first time since 2020. Growth can mean more jobs, investment and business opportunities.

ABC10 spoke with experts who’ve witnessed the change firsthand and explained what growth can mean for the community. It’s the first part in a series looking at growing cities around the region.

“We have watched the growth, and it is unbelievable,” said realtor Susan Vallejo.

Vallejo moved to Lathrop from the Bay Area with her husband and kids about nine years ago.

“You could not get this lifestyle in the Bay Area for the price that you’re paying here,” said Vallejo.

Lathrop topped the list of the 10 fastest-growing cities in California with populations over 30,000, according to a new report from the California Department of Finance. The report also shows home production plays a large part in the growth.

Experts ABC10 spoke with said one of the most appealing things for moving to a growing town like Lathrop is the affordability.

“I would tell people if they're looking at Lathrop, you have to see Lathrop from off the freeway, you have to get on the surface streets and drive around,” said city manager Stephen Salvatore.

Salvatore has been with the city for the last 17 years. He says pivoting from development to infrastructure during the recession and then focusing heavily on industry and bringing manufacturing back helped pave the way for growth.

“We're working on projects that are 15-20 years away for us, and the reason why we're doing that is because it gives us the ability in the future to avoid higher costs at that time,” said Salvatore.

Big names like Tesla, Wayfair and In-N-Out are some of the companies with large hubs in Lathrop. Salvatore says Lathrop’s advantage in attracting business is their ability to cut through the red tape.

“Tesla has expanded from 400,000 square feet. They're over 3 million square feet here in Lathrop now. The reason they are is because we move very quickly and we move at their pace. We provide them what they need in order to do their expansion projects,” said Salvatore.

But that hasn’t come without some growing pains.

“The hard part for residents moving into a brand new city is what comes first. The development of the businesses,” said Salvatore. “We have seen the struggle. They're trying to get the retail industry into the market here, but it's starting to pick up now. We’re starting to get a lot of interest.”

For longtime residents like Vallejo, investing in a growing community is paying off and the future feels bright.

Lathrop isn’t alone, in fact, three other cities in the region also made the state finance department’s top 10 fastest-growing cities: Folsom, Manteca and Yuba City.

You can read the full Department of Finance report HERE.

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