1.
Austin
Austin
is combination of college town, a tech town, and a business town. It has variety of educational and career opportunities, and it is famous for its internationally known festivals like the yearly South by Southwest music, film, and technology media festival.
While it did not have significant GDP growth, the city leads a number of Texas cities that are all on the rise, including Houston, San Antonio, and
Dallas
.
Major employers: Dell, AMD, and the
University
of
Texas
.
Relocation Population: 3.77% increase to almost 1.7 million
Unemployment Index: 7.2%
State Home Foreclosures: Under 1.25%
Hot Spot Segments: Computer services; Education; Government and public administration; Hotels and lodging; Real estate; Transportation
Job Growth: Expected to increase by 17.5% over the next five years, according to Economy.com
Percentage of population under 50: 77.7%
2.
San Jose
San Jose is known for its high-tech companies in
Silicon Valley
. And since the industry regained a semblance of normalcy late this year after 18 months of layoffs and decreased financial expectations, expect the tech to be on the way up again with a couple of extra chips to play with: A finally viable green tech industry (Fisker, Tesla) and better performing semiconductor manufacturers (Intel, AMD).
San Jose’s
South
Bay
area also has a strong medical supply manufacturing focus. And while the wind- and solar-power industries are not producing great many jobs right now, the large number of start-up firms here is bound to produce a few permanent winners when the stimulus package funds come through. California’s clean-energy businesses have brought in about $6.5 billion in capital investment since 2006 and a big chunk of that went to Silicon Valley and the general
San Jose
area.
San Jose’s proximity to the cultural scene in San Francisco, top universities within distance (Stanford, UC Berkeley, and
San Jose
State
), and rising diversity make it top place for melting pot-seekers.
Percentage of population under 50: 73.3%
Unemployment Index: 11.9%
Home Foreclosures: 1 in every 57,151 housing units received a foreclosure filing in September 2009
Hot Spot Segments: High-tech industries, Medical professionals, Education; Hotels and lodging; Manufacturing; Transportation
Median Family Income: $103,164
Median home price (2008): $449,000
3.
Atlanta
Atlanta
has a varied workforce with a robust number of companies, from manufacturing and food (Coca-Cola), to marketing and media (CNN), to finance and analysis groups. That’s in addition to the city’s vibrant social scene that includes music, sports, and other cultural events that attract top young talent from the many nearby universities.
Although a recent Federal Reserve report noted Atlanta showed a “weaker overall economic activity” than most large cities,
Atlanta
is poised to do well over the next few years.
Industrial, medical, and tech start-up industries are being set up by local civic and business leaders to lead the growth. Kia Motors, the
Cancer
Treatment
Centers
, and First Data Corp recently made deals to add about 2,000 jobs over the next couple of years, and the research universities are expected to support new medical biotech and research companies. There’s also substantial talk of a micro-business climate of agricultural biotech, which could benefit from future subsidies from the government’s green-jobs programs.
Want another reason why this is a good place ready for growth (besides jobs, education, and business?) According to U.S. News, the average one-bedroom apartment costs less here than in most of the other major cities in . This makes it especially welcome because of the city’s average-to-high salary scale — people can actually afford to live here, and well.
Relocation Population: 2.19%
Unemployment Index: 10.4% (stays virtually the same last 2 months)
Income Growth: 2003 to 2008 (5 years)
Home Foreclosures: 1 in every 2,032 – 6th highest in the nation (by September ’09)
Hot Spot Segments: Computer services; Education; Government and public administration; Hotels and lodging; Printing and publishing; Travel
Job Growth: 2.19%
Median home price: $164,600
Percentage of population under 50: 71.5%
4.
Houston
Houston
’s economy kept a semblance of stability throughout the recession and median home prices never really bottomed out here. This helps out the local business infrastructure as it builds out already successful areas like aeronautics, shipping, medical services, and finance. The University of Texas Medical Center alone is an employer of more than 75,000 workers in the city alone, and it’s becoming one of the most highly-sought after places to live and do research in the medical profession. Forbes recently noted there were 5,000 medical jobs available in the area last month and there will soon be 30,000 more with building expansion.
The financial center is also strong and growing. Just this year, companies downtown added about 2,000 jobs and the city’s mortgage lines weren’t as difficult to overcome as in other large cities. In terms of overall job growth, Houston beat recession trends by actually posting the fastest job growth of any metro area in the
This included new jobs in energy (1,600 of them) and IT.
Relocation Population: 2.33%
Income Growth 2003 to 2008 (5 years): 37.3 percent
Unemployment Index: 8.5%
Home Foreclosures: .39% last quarter, down 8.1 percent at this time from last year.
Hot Spot Segments: Advertising; Communications; Computer services; Construction; Education; Government and public administration; Legal services; Travel; Other
Median home price: $161,339
Percentage of population under 50: 74.0%
5.
New Orleans
Hurricane Katrina devastated
New Orleans
in 2005 and it took a couple of years to get its bearings before starting to come back. Now all the necessary growth indicators are there: More construction in the rising green jobs, industry improved medical services, and a better energy industry.
Even the people are coming back. 22% left within a year of the hurricane but the area has grown more than any city in the since 2007.
As expected, some of the biggest areas of success and job gain are in the home building industry. Medical and scientific centers are also due for growth and will benefit from government spending, as will green energy businesses, bringing pre-Katrina employment numbers back within two years, according to analysts.
Expected growth from film industry and natural gas businesses are also bringing jobs and an influx of much-needed young people to the city. Recently, the U.S. Department of Energy gave local green energy company Entergy a $5 million grant for a pilot project to help low-income people better manage electric bills through “smart meters.” The city also pushed through many incentives for new businesses, like $1,500 wage credits.
The city’s per capita income has suffered wild swings in the last few years, but a bizjournals study released this month indicated New Orleans currently is on pace for the best record of long-term income growth. This probably has something to do with the fact that people that were displaced by the hurricane were poor and were replaced by a new, younger crowd.
New Orleans
is famous for the wonderful food, music, and old-school southern culture.
Relocation Population: 8.2 growth
Unemployment Index: 6.8% (down 0.5% from last month)
Home Foreclosures: 1 in every 7,551
housing units received a foreclosure filing in September 2009
Hot Spot Segments: natural resources such as coal, oil and natural gas.
Job Growth: - 2% (2008-2009)
Income growth: 2003 to 2008 (5 years): 50.9 percent
6.
Oklahoma City
Even in the middle of the recession, there was modest job growth in
Oklahoma City
and as the economy rebounds there will be many more.
Business, health care, energy, government jobs, and a growing number of high-tech companies are all leading the growth. Oil and gas sectors push construction and mining jobs and even sinking overall profits in that sector won’t derail overall growth. Defense spending will probably go down with the current administration, but just like with
Austin
and energy, it should continue to thrive at a smaller pace.
And high-tech firms like Orthocare (tech prosthetic devices, robotics), True Tech, and @Link Wi-Fi seem especially ready to take up their end of the growth. Expect more start-ups to blossom here too, including in bio-tech: Forbes Small Business Magazine recently announced that
Oklahoma City
was the best place in the country for entrepreneurs to try to start a new business.
One of the major reasons it wasn’t dragged down by the economy is because its banks avoided risky loans like the plague. Why? An oil boom 25 years ago led to bad home deals and a local recession, giving locals a lesson in over-investment. So most people here didn’t get overly excited when the energy and military markets brought in a lot of money earlier this decade. Instead,
Oklahoma
natives used that money to finance a diversified business climate – the state’s revenue from energy and military still only comes to about 12% of GDP. As a result, financial and housing markets are relatively healthy now and into the next few years.
People also just want to live here. The 5.5 percent state income tax rate and a new NBA team (with one of the best players in the league) will do that. The economy is buoyed by Tinker Air Force Base (the state’s largest employer) and
Oklahoma
State
University
.
Relocation Population: 6.6%
Unemployment Index: 6.5% (6th lowest in the U.S. as of September 2009, though it went up 0.5% in October 2009)
Home Foreclosures: 1 in every 3,373
housing units received a foreclosure filing in September 2009 (second lowest in the country)
Hot Spot Segments: Agriculture, forestry, and fishing; Computer services; Construction; Education; Health and medical services; Legal services; Real estate; Travel; Other
Job Growth: 5.7% (mostly in small businesses)
Percentage of population under 50: 70.3%
7.
Denver
While
Denver
didn’t escape the recession completely (it’s currently experiencing a business job freeze and continued foreclosures), there are indicators it will do well shortly. The Metro Denver Economic Development Corporation noted that the city has maintained top rankings in the areas of residential real estate, labor supply, and business tax favorability climate throughout the recession.
As with the other cities on this list, a minor tech rumble simmers within the city’s business climate. Several biotech medical device-manufacturing companies call
Denver
home, including CaridianBCT, which just received a $5.6 million grant for the Department of Defense to develop blood transfusion safety technology. Another, publishing software-maker Quark, is expected to bring in hundreds of jobs.
The main tech talent that will be needed here are website and database developers and network engineers. Other top areas in growth mode are in social media, cable/satellite TV/telecommunications, energy, health care, cloud computing, and government. Education, government, and health sectors saw minor job growths in the last year and are expected to be among the first to benefit from an improved economy. The main areas that struggled during the recession (retail, construction, natural resources) accounted for most of the layoffs, so they shouldn’t affect the city’s economic growth as much as
Denver
diversifies its economy.
City apartment vacancy rates fell this past quarter, according to the Denver Business Times, indicating lowering levels of unemployment.
Relocation Population: 2.17% (In 2008, Denver was the 10th-fastest growing metro area in the
)
Unemployment Index: 6.8% (down 0.3 since last month)
Home Foreclosures: 1 in every 1,783 housing units received a foreclosure filing in September 2009
Hot Spot Segments: aerospace, bioscience, and energy. Computer services; Construction; Education; Government and public administration; Health and medical services; Hotels and lodging; Legal services; Real estate; Travel; Other
Percentage of population under 50: ~ 72.4%
Intangibles: Sports (Boating/Sailing, Skiing/Snowshoeing, Sporting events, Swimming, Trails and wildlife, Travel), bars, culture, nation’s largest city park system.
Denver
brews more beer than any other city.
8.
Raleigh
Spurred by technology companies, a sound business infrastructure and job market, and a better-than-average housing outlook,
Raleigh
is already on the way up economically. The next two years should place the city in an even better position.
A lot of the excitement is centered on the area’s
Research
Triangle
Park
, or what some locals call the “
Silicon Valley
of the South.” This area on the border of Raleigh and nearby
Durham
includes more than 180 known companies and many start-up incubators. The main industries on the rise are pharmaceuticals (GlaxoSmithKline), biotech research, IT (IBM, RedHat, SageWorks), general health care (at NC State, UNC, and
Duke
Universities
), and telecommunications.
Raleigh
has heavily invested in new transportation initiatives, which will place it near the front of the line when government subsidies come through with green jobs. Business has suffered a bit because of the economy (like everywhere else), but it’s not in too much trouble because of the diversified job force. The presence of so many recession-proof positions in the government and education sectors helps keep the balance.
A recent big indicator of job growth was Deutsche Bank AG’s expansion into the
Raleigh
suburbs, bringing with it more than 300 jobs.
For all these reasons, Moody’s recently ranked the Raleigh-Cary area as the third-best place to start a business in the .
Culturally,
Raleigh
has pleasant weather and a growing population of educated achievers that slide in to jobs straight from the local universities. The city has been criticized for lack of diversity, but it’s improving there too as immigrant populations slowly come in.
Percentage of population under 50: 73.6%
Relocation Population: 6.14% new people
Unemployment Index: 8.6% (same as October)
Home Foreclosures: 1 in every 177,791 housing units received a foreclosure filing in September 2009
Hot Spot Segments: Computer services; Education; Government and public administration; Health and medical services; Hotels and lodging; Legal services; Manufacturing; Real estate; Other
Job Growth: 4.29%
9.
Seattle
Seattle
and the high-tech industry have been synonymous with success and growth ever since Bill Gates and Paul Allen started a little company called Microsoft about 30 years ago. While this city suffered some of the same recession drops as other tech hubs (and worse when counting the bad trends of the forest products industry and housing market), the city is already set up for continued growth.
Health care has always been a good stable part of the economic equation here, with almost 100,000 jobs and nearly $10 Billion generated for the local economy. As a result, the industry that melds both main growth trends, biotech, is huge now and will only get bigger.
Small businesses, financial institutions and retail stores have had a tough time of it during the recession and because of the bad credit markets, some are expecting that a full recovery won’t come to
Seattle
until late in 2010. But the growing investment in new companies at the end of this year (many in tech) will eventually benefit the whole area and lead an economic rise.
IHS Global Insight recently said that annual job growth in
Washington
state will “average 1.42 percent between 2009 and 2015,” which will be good enough for 16th best in the country. And Moody’s says the
Seattle
economy will “reach a new peak in the third quarter of 2009 and keep growing from there.” Both of those estimates are conservative and don’t take into account any new boost that might come from this innovation-rich area.
Current GDP: $168.3 billion. End of 2010: $179.8 billion (projected)
Unemployment: 9.0%
Average cap rate: 6.8% on purchases of big, mid-grade commercial properties. That’s below average, a good sign for renters.
Percentage of population under 50: 67.7%
Income Growth rate (2003-2008): 30.2%
Home Foreclosures: 1 in every 185,805
Hot Spot Segments: Communications; Computer services; Education; Entertainment and recreation; Government and public administration; Health and medical services; Legal services; Real estate
Intangibles: It’s
Seattle
so this means coffee, a cool music scene and the still-growing techy-geeky scene.