In This Article
Sure cities throughout the US are rising as financial powerhouses, creating superb situations for actual property buyers.
I’ve revealed two earlier articles on cities with rising tech hubs and excessive earnings will increase, each of which are extremely correlated with worth appreciation. Simply check out the connection between earnings and worth progress for the highest 100 metropolitan areas:
Now, for the third installment on this collection, I’ve determined to filter and rank every metropolis’s economic system as an entire, below the idea that the stronger a metropolis’s economic system is, the extra possible wages will rise, and with them, actual property costs.
I’ve analyzed the info, crunched the numbers, and recognized 13 cities with the strongest economies that needs to be ripe with funding alternatives. Learn on to find the place try to be trying subsequent to maximise your returns in 2024.
How I Calculated the Prime 13 Cities
First, I downloaded employment and wage knowledge from the Bureau of Labor Statistics (BLS). I additionally included inhabitants knowledge from the U.S. Census Bureau. Lastly, I retrieved GDP-per-MSA knowledge from the Bureau of Financial Evaluation (BEA).
Subsequent, I calculated one- and five-year progress for inhabitants, whole employment, and wages for every market. I additionally used the inhabitants knowledge to assist create GDP-per-capita knowledge for every metropolis.
Then, I filtered out all cities that had inhabitants, employment, or wage decline over the previous yr. Essentially the most sturdy economies shouldn’t be declining in any of those metrics.
I additionally solely saved metros the place the five-year wage and employment progress had been better than the nationwide median (along with higher-than-median GDP per capita). I believed this was a very good gauge of basic financial progress.
Lastly, I wished to rank the remaining metros by job progress. So I created a “related employment progress” index that ranked five-year share employment progress whereas nonetheless retaining measurement under consideration (a ten% enhance for a metropolis with 1 million jobs is extra spectacular than a ten% enhance for a metropolis with solely 50,000 jobs, however together with solely absolute progress into an index has its personal issues).
Word: As a result of I used some college-level knowledge science to create the related employment progress index, I’ll spare you the small print. However be happy to remark should you’d like me to clarify how I derived it.
After filtering, I was left with 13 U.S. cities with the very best financial metrics, ranked by related employment progress. If you happen to don’t see your favourite metro within the listing, it’s possible as a result of it both had less-than-stellar employment progress or had an earnings decline over the previous yr. Many metros did.
The Outcomes
Now, let’s soar into the outcomes, going from the least relative employment progress to the very best.
13. Allentown-Bethlehem-Easton, PA-NJ
The Allentown, Pennsylvania MSA has undergone a renaissance prior to now few many years, from a failing metal manufacturing city within the Nineteen Eighties to a rising hub for established companies and startups alike. Allentown’s economic system is presently supported by distribution, monetary companies, and healthcare jobs and stays in shut driving proximity to Philadelphia (about one hour) and New York Metropolis (about two hours).
Key financial indicators:
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Common Wage in 2024: $56,910.88
5-Yr Compound Wage Progress: 4.8%
Whole Employment in 2024: 400,600
5-Yr Compound Employment Progress: 1.19%
Unemployment Fee in 2024: 4.1%
GDP Per Capita as of 2022*: $53,539.79
*Essentially the most present GDP and inhabitants numbers are from 2022.
Affordability indicators:
Median Value in 2024: $336,043.87
5-Yr Compound Value Progress: 9.26%
Median Hire in 2024: $1,796.08
5-Yr Compound Hire Progress: 7.35%
Hire-Value Ratio: 0.53%
12. Columbia, SC
The Columbia, South Carolina MSA is supported by the College of South Carolina, Fort Jackson, and healthcare and manufacturing firms. It’s additionally the second-most inexpensive market on this listing (simply behind Oklahoma Metropolis), with comparatively excessive costs and hire progress.
Key financial indicators:
Common Wage in 2024: $52,590.72
5-Yr Compound Wage Progress: 4.47%
Whole Employment in 2024: 434,900
5-Yr Compound Employment Progress: 1.63%
Unemployment Fee in 2024: 4.7%
GDP Per Capita as of 2022: $53,718.41
Affordability indicators:
Median Value in 2024: $252,535.39
5-Yr Compound Value Progress: 9.16%
Median Hire in 2024: $1,563.14
5-Yr Compound Hire Progress: 7.53%
Hire-Value Ratio: 0.62%
11. Colorado Springs, CO
The Colorado Springs, Colorado MSA is supported by navy, skilled companies, distribution, healthcare, and tech jobs. I feel Colorado Springs is an instance of a gradual market that continues to point out wholesome progress.
Key financial indicators:
Common Wage in 2024: $61,301.24
5-Yr Compound Wage Progress: 3.92%
Whole Employment in 2024: 336,600
5-Yr Compound Employment Progress: 2.21%
Unemployment Fee in 2024: 4.4%
GDP Per Capita as of 2022: $53,998.04
Affordability indicators:
Median Value in 2024: $464,485.54
5-Yr Compound Value Progress: 7.3%
Median Hire in 2024: $1,904.88
5-Yr Compound Hire Progress: 6.12%
Hire-Value Ratio: 0.41%
10. Greenville-Anderson-Greer, SC
The Greenville, South Carolina MSA is supported by distribution, skilled companies, and manufacturing jobs. It’s seen sturdy employment progress, notably within the blue-collar and monetary sectors.
Key financial indicators:
Common Wage in 2024: $58,228.04
5-Yr Compound Wage Progress: 5.1%
Whole Employment in 2024: 467,200
5-Yr Compound Employment Progress: 1.61%
Unemployment Fee in 2024: 4.7%
GDP Per Capita as of 2022: $50,607.38
Affordability indicators:
Median Value in 2024: $299,935.17
5-Yr Compound Value Progress: 9.23%
Median Hire in 2024: $1,566.16
5-Yr Compound Hire Progress: 6.54%
Hire-Value Ratio: 0.52%
9. Cincinnati, OH–KY–IN
The Cincinnati MSA is supported by healthcare, monetary companies, and logistics jobs. However I feel Columbus has the higher economic system of the 2 Ohio metros because of its increased employment and wage progress. Hold studying previous Fayetteville, Arkansas, to see Columbus’ metrics.
Key financial indicators:
Common Wage in 2024: $57,448.04
5-Yr Compound Wage Progress: 4.21%
Whole Employment in 2024: 1,166,200
5-Yr Compound Employment Progress: 0.8%
Unemployment Fee in 2024: 4.7%
GDP Per Capita as of 2022: $69,222.47
Affordability indicators:
Median Value in 2024: $288,937.75
5-Yr Compound Value Progress: 8.61%
Median Hire in 2024: $1,546.9
5-Yr Compound Hire Progress: 7.15%
Hire-Value Ratio: 0.54%
8. Fayetteville–Springdale–Rogers, AR
The Fayetteville, Arkansas MSA, generally known as Northwest Arkansas, has an financial ecosystem supported by Walmart, Tyson Meals, J.B. Hunt Transport Companies, and all the person distributors that service these firms, comprising a wholesome, rising economic system. With sturdy job and wage progress, low unemployment, and appreciating costs, this market stays certainly one of my high picks.
Key financial indicators:
Common Wage in 2024: $54,845.96
5-Yr Compound Wage Progress: 6.21%
Whole Employment in 2024: 311,900
5-Yr Compound Employment Progress: 3.24%
Unemployment Fee in 2024: 3.0%
GDP Per Capita as of 2022: $56,074.19
Affordability indicators:
Median Value in 2024: $342,107.28
5-Yr Compound Value Progress: 10.86%
Median Hire in 2024: $1,612.96
5-Yr Compound Hire Progress: 7.51%
Hire-Value Ratio: 0.47%
7. Columbus, OH
The Columbus, Ohio, MSA economic system is extremely various and supported by authorities, finance, healthcare, manufacturing, and tech jobs, and has seen sturdy wage progress prior to now few years. If the property taxes had been a bit decrease, this would possibly’ve been my favourite market. At a state common of 1.59%, I consider there are a number of higher metros for actual property buyers. However should you don’t thoughts that, this market has glorious fundamentals.
Key financial indicators:
Common Wage in 2024: $55,651.44
5-Yr Compound Wage Progress: 4.99%
Whole Employment in 2024: 1,168,600
5-Yr Compound Employment Progress: 0.9%
Unemployment Fee in 2024: 4.5%
GDP Per Capita as of 2022: $66,834.95
Affordability indicators:
Median Value in 2024: $316,666.35
5-Yr Compound Value Progress: 8.92%
Median Hire in 2024: $1,568.42
5-Yr Compound Hire Progress: 6.3%
Hire-Value Ratio: 0.5%
6. Oklahoma Metropolis, OK
The Oklahoma Metropolis MSA has a rising variety of skilled companies, healthcare, and authorities jobs supporting the economic system. Nevertheless, OKC sits within the coronary heart of Twister Alley, which drives up house insurance coverage charges. Based on Bankrate.com, “the typical annual value of house insurance coverage is $4,846 for a coverage with a $300,000 dwelling restrict, which is 113% greater than the nationwide common value of $2,285.” I’d choose to not spend money on a metropolis identified for its excessive incidence of property-damaging climate occasions.
Key financial indicators:
Common Wage in 2024: $56,676.88
5-Yr Compound Wage Progress: 3.92%
Whole Employment in 2024: 706,200
5-Yr Compound Employment Progress: 1.56%
Unemployment Fee in 2024: 3.5%
GDP Per Capita as of 2022: $52,153.23
Affordability indicators:
Median Value in 2024: $237,117.57
5-Yr Compound Value Progress: 7.96%
Median Hire in 2024: $1,365.59
5-Yr Compound Hire Progress: 5.66%
Hire-Value Ratio: 0.58%
5. Boise, ID
Boise, Idaho, has seen a giant enhance in employment through the years. Whereas unlikely to develop on the similar charge it did throughout the pandemic, the town ought to proceed to see wholesome job progress for the foreseeable future. This is a stable marketplace for any investor who can afford it.
Key financial indicators:
Common Wage in 2024: $56,876.56
5-Yr Compound Wage Progress: 6.74%
Whole Employment in 2024: 408,100
5-Yr Compound Employment Progress: 3.42%
Unemployment Fee in 2024: 3.7%
GDP Per Capita as of 2022: $51,952.8
Affordability indicators:
Median Value in 2024: $480,564.72
5-Yr Compound Value Progress: 9.94%
Median Hire in 2024: $1,835.37
5-Yr Compound Hire Progress: 7.47%
Hire-Value Ratio: 0.38%
4. San Antonio–New Braunfels, TX
San Antonio, Texas, gives many navy, healthcare, {and professional} companies jobs. The world stays comparatively inexpensive and has stable employment progress. The one factor I don’t choose is the excessive property taxes (a state common of 1.68%, even increased than Ohio’s).
Key financial indicators:
Common Wage in 2024: $53,292.2
5-Yr Compound Wage Progress: 3.74%
Whole Employment in 2024: 1,178,000
5-Yr Compound Employment Progress: 1.82%
Unemployment Fee in 2024: 4.0%
GDP Per Capita as of 2022: $52,860.79
Affordability indicators:
Median Value in 2024: $288,944.75
5-Yr Compound Value Progress: 6.65%
Median Hire in 2024: $1,505.12
5-Yr Compound Hire Progress: 4.29%
Hire-Value Ratio: 0.52%
3. Raleigh-Cary, NC
Raleigh, North Carolina, has seen progress in healthcare, pharmaceutical, and expertise employment through the years, and it doesn’t appear to be it’s stopping anytime quickly. STEM progress drives appreciation, and the rising variety of STEM jobs will possible have a constructive influence on worth appreciation all through the metro space within the coming years. This is presently certainly one of my favourite markets attributable to its sturdy fundamentals, and I can’t advocate it sufficient.
Key financial indicators:
Common Wage in 2024: $59,586.28
5-Yr Compound Wage Progress: 3.73%
Whole Employment in 2024: 748,600
5-Yr Compound Employment Progress: 3.14%
Unemployment Fee in 2024: 3.8%
GDP Per Capita as of 2022: $70,178.38
Affordability indicators:
Median Value in 2024: $447,526.11
5-Yr Compound Value Progress: 9.35%
Median Hire in 2024: $1,797.17
5-Yr Compound Hire Progress: 5.91%
Hire-Value Ratio: 0.4%
2. Tampa-St. Petersburg-Clearwater, FL
The Tampa, Florida, MSA has skilled regular progress within the healthcare, finance, insurance coverage, and expertise sectors. Total, it’s a very good market with stable fundamentals and a various economic system. Nevertheless, insurance coverage costs are more likely to proceed rising, as many properties are in danger from excessive climate occasions. Personally, I’ll be skipping this market.
Key financial indicators:
Common Wage in 2024: $57,930.6
5-Yr Compound Wage Progress: 3.96%
Whole Employment in 2024: 1,548,700
5-Yr Compound Employment Progress: 2.48%
Unemployment Fee in 2024: 3.8%
GDP Per Capita as of 2022: $57,049.28
Affordability indicators:
Median Value in 2024: $382,195.19
5-Yr Compound Value Progress: 11.03%
Median Hire in 2024: $2,125.23
5-Yr Compound Hire Progress: 8.88%
Hire-Value Ratio: 0.56%
1. Phoenix–Mesa–Chandler, AZ
Powered by the nation’s largest nuclear facility (Palo Verde Producing Station) and containing the most important public college in the US (ASU), it ought to come as no shock that Phoenix is a booming metropolis. What is stunning is how a lot the town grew relative to its already-large measurement. The economic system is diversified, ever-growing, and one of many strongest within the nation. I additionally grew up right here and have seen its monumental progress firsthand.
However does this progress have a draw back? New-build developments could decelerate—the Rio Verde Foothills neighborhood exterior of Scottsdale had just lately skilled a disaster when it misplaced its water provide (don’t fear, it’s again—simply with a a lot increased utility value to residents).
Will Phoenix’s progress spur extra water provide crises like this? Possibly, possibly not. However it could restrict the speed of suburban sprawl, which can drive up costs in current properties as demand for housing continues. If you happen to can afford it, now could also be a perfect time to enter this market.
Key financial indicators:
Common Wage in 2024: $63,566.88
5-Yr Compound Wage Progress: 4.41%
Whole Employment in 2024: 2,413,300
5-Yr Compound Employment Progress: 2.58%
Unemployment Fee in 2024: 3.9%
GDP Per Capita as of 2022: $61,450.29
Affordability indicators:
Median Value in 2024: $459,067.25
5-Yr Compound Value Progress: 10.16%
Median Hire in 2024: $1,884.26
5-Yr Compound Hire Progress: 7.61%
Hire-Value Ratio: 0.41%
Ultimate Ideas
There’s no such factor as the proper economic system. Nevertheless, every of those 13 cities noticed wage, job, and inhabitants progress (and GDP per capita) better than the nationwide median over a five-year interval, which may make them glorious markets on your subsequent funding.
Personally, after I chosen my market, I used the BiggerPockets Deal Finder to assist me discover properties that match my funding standards. It is likely to be useful for you as effectively.
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Word By BiggerPockets: These are opinions written by the writer and don’t essentially characterize the opinions of BiggerPockets.
