Sure cities throughout america are rising as financial powerhouses, creating supreme circumstances for actual property buyers.
I’ve printed two earlier articles on cities with growing tech hubs and high income increases, 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, underneath 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 you need to be wanting 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, complete 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. Probably the most strong economies shouldn’t be declining in any of those metrics.
I additionally solely stored metros the place the five-year wage and employment progress had been higher than the nationwide median (along with higher-than-median GDP per capita). I believed this was an excellent gauge of normal 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 protecting dimension under consideration (a ten% improve for a metropolis with 1 million jobs is extra spectacular than a ten% improve for a metropolis with solely 50,000 jobs, however together with solely absolute progress into an index has its personal issues).
Notice: 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 at liberty to remark when you’d like me to elucidate how I derived it.
After filtering, I was left with 13 U.S. cities with the perfect financial metrics, ranked by related employment progress. Should you don’t see your favourite metro within the record, 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 leap into the outcomes, going from the least relative employment progress to the best.
13. Allentown-Bethlehem-Easton, PA-NJ
The Allentown, Pennsylvania MSA has undergone a renaissance up to now few a long time, 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 at the moment supported by distribution, monetary providers, and healthcare jobs and stays in shut driving proximity to Philadelphia (about one hour) and New York City (about two hours).
Key financial indicators:
- Common Wage in 2024: $56,910.88
- 5-12 months Compound Wage Progress: 4.8%
- Complete Employment in 2024: 400,600
- 5-12 months Compound Employment Progress: 1.19%
- Unemployment Fee in 2024: 4.1%
- GDP Per Capita as of 2022*: $53,539.79
*Probably the most present GDP and inhabitants numbers are from 2022.
Affordability indicators:
- Median Worth in 2024: $336,043.87
- 5-12 months Compound Worth Progress: 9.26%
- Median Hire in 2024: $1,796.08
- 5-12 months Compound Hire Progress: 7.35%
- Hire-Worth 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 record (simply behind Oklahoma Metropolis), with comparatively excessive costs and lease progress.
Key financial indicators:
- Common Wage in 2024: $52,590.72
- 5-12 months Compound Wage Progress: 4.47%
- Complete Employment in 2024: 434,900
- 5-12 months Compound Employment Progress: 1.63%
- Unemployment Fee in 2024: 4.7%
- GDP Per Capita as of 2022: $53,718.41
Affordability indicators:
- Median Worth in 2024: $252,535.39
- 5-12 months Compound Worth Progress: 9.16%
- Median Hire in 2024: $1,563.14
- 5-12 months Compound Hire Progress: 7.53%
- Hire-Worth Ratio: 0.62%
11. Colorado Springs, CO
The Colorado Springs, Colorado MSA is supported by navy, skilled providers, distribution, healthcare, and tech jobs. I feel Colorado Springs is an instance of a gentle market that continues to indicate wholesome progress.
Key financial indicators:
- Common Wage in 2024: $61,301.24
- 5-12 months Compound Wage Progress: 3.92%
- Complete Employment in 2024: 336,600
- 5-12 months Compound Employment Progress: 2.21%
- Unemployment Fee in 2024: 4.4%
- GDP Per Capita as of 2022: $53,998.04
Affordability indicators:
- Median Worth in 2024: $464,485.54
- 5-12 months Compound Worth Progress: 7.3%
- Median Hire in 2024: $1,904.88
- 5-12 months Compound Hire Progress: 6.12%
- Hire-Worth Ratio: 0.41%
10. Greenville-Anderson-Greer, SC
The Greenville, South Carolina MSA is supported by distribution, skilled providers, and manufacturing jobs. It’s seen sturdy employment progress, significantly within the blue-collar and monetary sectors.
Key financial indicators:
- Common Wage in 2024: $58,228.04
- 5-12 months Compound Wage Progress: 5.1%
- Complete Employment in 2024: 467,200
- 5-12 months Compound Employment Progress: 1.61%
- Unemployment Fee in 2024: 4.7%
- GDP Per Capita as of 2022: $50,607.38
Affordability indicators:
- Median Worth in 2024: $299,935.17
- 5-12 months Compound Worth Progress: 9.23%
- Median Hire in 2024: $1,566.16
- 5-12 months Compound Hire Progress: 6.54%
- Hire-Worth Ratio: 0.52%
9. Cincinnati, OH–KY–IN
The Cincinnati MSA is supported by healthcare, monetary providers, and logistics jobs. However I feel Columbus has the higher economic system of the 2 Ohio metros because of its greater employment and wage progress. Hold studying previous Fayetteville, Arkansas, to see Columbus’ metrics.
Key financial indicators:
- Common Wage in 2024: $57,448.04
- 5-12 months Compound Wage Progress: 4.21%
- Complete Employment in 2024: 1,166,200
- 5-12 months Compound Employment Progress: 0.8%
- Unemployment Fee in 2024: 4.7%
- GDP Per Capita as of 2022: $69,222.47
Affordability indicators:
- Median Worth in 2024: $288,937.75
- 5-12 months Compound Worth Progress: 8.61%
- Median Hire in 2024: $1,546.9
- 5-12 months Compound Hire Progress: 7.15%
- Hire-Worth 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 Providers, 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 one among my prime picks.
Key financial indicators:
- Common Wage in 2024: $54,845.96
- 5-12 months Compound Wage Progress: 6.21%
- Complete Employment in 2024: 311,900
- 5-12 months Compound Employment Progress: 3.24%
- Unemployment Fee in 2024: 3.0%
- GDP Per Capita as of 2022: $56,074.19
Affordability indicators:
- Median Worth in 2024: $342,107.28
- 5-12 months Compound Worth Progress: 10.86%
- Median Hire in 2024: $1,612.96
- 5-12 months Compound Hire Progress: 7.51%
- Hire-Worth 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 up to now few years. If the property taxes had been a bit decrease, this would possibly’ve been my favourite market. At a state average of 1.59%, I imagine there are a couple of higher metros for actual property buyers. However when you don’t thoughts that, this market has glorious fundamentals.
Key financial indicators:
- Common Wage in 2024: $55,651.44
- 5-12 months Compound Wage Progress: 4.99%
- Complete Employment in 2024: 1,168,600
- 5-12 months Compound Employment Progress: 0.9%
- Unemployment Fee in 2024: 4.5%
- GDP Per Capita as of 2022: $66,834.95
Affordability indicators:
- Median Worth in 2024: $316,666.35
- 5-12 months Compound Worth Progress: 8.92%
- Median Hire in 2024: $1,568.42
- 5-12 months Compound Hire Progress: 6.3%
- Hire-Worth Ratio: 0.5%
6. Oklahoma Metropolis, OK
The Oklahoma City MSA has a rising variety of skilled providers, healthcare, and authorities jobs supporting the economic system. Nonetheless, OKC sits within the coronary heart of Twister Alley, which drives up residence insurance coverage charges. In accordance with Bankrate.com, “the common annual price of residence insurance coverage is $4,846 for a coverage with a $300,000 dwelling restrict, which is 113% greater than the nationwide common price of $2,285.” I’d want to not put money into a metropolis identified for its excessive incidence of property-damaging climate occasions.
Key financial indicators:
- Common Wage in 2024: $56,676.88
- 5-12 months Compound Wage Progress: 3.92%
- Complete Employment in 2024: 706,200
- 5-12 months Compound Employment Progress: 1.56%
- Unemployment Fee in 2024: 3.5%
- GDP Per Capita as of 2022: $52,153.23
Affordability indicators:
- Median Worth in 2024: $237,117.57
- 5-12 months Compound Worth Progress: 7.96%
- Median Hire in 2024: $1,365.59
- 5-12 months Compound Hire Progress: 5.66%
- Hire-Worth Ratio: 0.58%
5. Boise, ID
Boise, Idaho, has seen a massive improve in employment over time. Whereas unlikely to develop on the similar price it did throughout the pandemic, the town ought to proceed to see wholesome job progress for the foreseeable future. This is a strong marketplace for any investor who can afford it.
Key financial indicators:
- Common Wage in 2024: $56,876.56
- 5-12 months Compound Wage Progress: 6.74%
- Complete Employment in 2024: 408,100
- 5-12 months Compound Employment Progress: 3.42%
- Unemployment Fee in 2024: 3.7%
- GDP Per Capita as of 2022: $51,952.8
Affordability indicators:
- Median Worth in 2024: $480,564.72
- 5-12 months Compound Worth Progress: 9.94%
- Median Hire in 2024: $1,835.37
- 5-12 months Compound Hire Progress: 7.47%
- Hire-Worth Ratio: 0.38%
4. San Antonio–New Braunfels, TX
San Antonio, Texas, gives many navy, healthcare, {and professional} providers jobs. The realm stays comparatively inexpensive and has strong employment progress. The one factor I don’t want is the excessive property taxes (a state average of 1.68%, even greater than Ohio’s).
Key financial indicators:
- Common Wage in 2024: $53,292.2
- 5-12 months Compound Wage Progress: 3.74%
- Complete Employment in 2024: 1,178,000
- 5-12 months Compound Employment Progress: 1.82%
- Unemployment Fee in 2024: 4.0%
- GDP Per Capita as of 2022: $52,860.79
Affordability indicators:
- Median Worth in 2024: $288,944.75
- 5-12 months Compound Worth Progress: 6.65%
- Median Hire in 2024: $1,505.12
- 5-12 months Compound Hire Progress: 4.29%
- Hire-Worth Ratio: 0.52%
3. Raleigh-Cary, NC
Raleigh, North Carolina, has seen progress in healthcare, pharmaceutical, and know-how employment over time, 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 at the moment one among my favourite markets resulting from its sturdy fundamentals, and I can’t suggest it sufficient.
Key financial indicators:
- Common Wage in 2024: $59,586.28
- 5-12 months Compound Wage Progress: 3.73%
- Complete Employment in 2024: 748,600
- 5-12 months Compound Employment Progress: 3.14%
- Unemployment Fee in 2024: 3.8%
- GDP Per Capita as of 2022: $70,178.38
Affordability indicators:
- Median Worth in 2024: $447,526.11
- 5-12 months Compound Worth Progress: 9.35%
- Median Hire in 2024: $1,797.17
- 5-12 months Compound Hire Progress: 5.91%
- Hire-Worth Ratio: 0.4%
2. Tampa-St. Petersburg-Clearwater, FL
The Tampa, Florida, MSA has skilled regular progress within the healthcare, finance, insurance coverage, and know-how sectors. General, it’s an excellent market with strong fundamentals and a various economic system. Nonetheless, insurance prices are likely to continue 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
- 5-12 months Compound Wage Progress: 3.96%
- Complete Employment in 2024: 1,548,700
- 5-12 months Compound Employment Progress: 2.48%
- Unemployment Fee in 2024: 3.8%
- GDP Per Capita as of 2022: $57,049.28
Affordability indicators:
- Median Worth in 2024: $382,195.19
- 5-12 months Compound Worth Progress: 11.03%
- Median Hire in 2024: $2,125.23
- 5-12 months Compound Hire Progress: 8.88%
- Hire-Worth Ratio: 0.56%
1. Phoenix–Mesa–Chandler, AZ
Powered by the nation’s largest nuclear facility (Palo Verde Producing Station) and containing the biggest public college in america (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 dimension. 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 huge progress firsthand.
However does this progress have a draw back? New-build developments might decelerate—the Rio Verde Foothills neighborhood outdoors of Scottsdale had just lately skilled a disaster when it lost its water supply (don’t fear, it’s again—simply with a a lot greater utility price to residents).
Will Phoenix’s progress spur extra water provide crises like this? Perhaps, possibly not. However it could restrict the speed of suburban sprawl, which can drive up costs in present houses as demand for housing continues. Should you can afford it, now could also be a really perfect time to enter this market.
Key financial indicators:
- Common Wage in 2024: $63,566.88
- 5-12 months Compound Wage Progress: 4.41%
- Complete Employment in 2024: 2,413,300
- 5-12 months Compound Employment Progress: 2.58%
- Unemployment Fee in 2024: 3.9%
- GDP Per Capita as of 2022: $61,450.29
Affordability indicators:
- Median Worth in 2024: $459,067.25
- 5-12 months Compound Worth Progress: 10.16%
- Median Hire in 2024: $1,884.26
- 5-12 months Compound Hire Progress: 7.61%
- Hire-Worth Ratio: 0.41%
Remaining Ideas
There’s no such factor as the right economic system. Nonetheless, every of those 13 cities noticed wage, job, and inhabitants progress (and GDP per capita) higher than the nationwide median over a five-year interval, which may make them glorious markets on your subsequent funding. If you would like to look at the info your self, you possibly can obtain it on our Resources page.
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.
Discover the Hottest Offers of 2024!
Uncover prime offers in at present’s market with the model new Deal Finder created only for buyers such as you! Snag nice offers FAST with customized purchase containers, complete property insights, and property projections.
Notice By BiggerPockets: These are opinions written by the creator and don’t essentially symbolize the opinions of BiggerPockets.
