The Top 10 Metro Areas with the Highest Employment Growth Rates over the Last 5 Years
Will these metros continue to reign post COVID? And will what’s driven that in the past continue?
We all know that past performance isn’t a true indicator of future performance. What we do know is that the last 18 months of the pandemic have undoubtedly skewed data in regards to where people are choosing to live and work, with many workers shifting their office to their bedrooms. The question is, as vaccine rates rise and companies begin reopening their offices, will workers begin migrating back to where the job growth is? According to a survey earlier this year by PWC, less than 20% of executives want to return to work in the same way they did pre-pandemic, but only 13% are prepared to go fully remote. This indicates it’s worthwhile examining the large metro areas that saw the highest employment growth over the last 5 years (according to the Bureau of Labor Statistics) to consider where workers may migrate back to in order to capitalize on those job opportunities. These 10 metro areas should be on your radar not only as an investor due to the strong economic growth performance, but also as a traveler looking for great places to visit on your next vacation without having to deal with the uncertainty of changing international travel regulations.
The top 10 large metro areas in the US with solid growth opportunities for investors and vacationers
We’re counting down the top 10 large cities based on employment growth over the last 5 years, starting with the smallest % growth and ending with the city that is seeing double digits. Plus, we’ve included the industries driving this growth, the best neighborhoods to consider, and how to experience the city like a local if you decide to visit and see what all the hype is about.
#10: Charlotte, North Carolina
The Charlotte-Concord-Gastonia metropolitan area may be last on this list, but it’s certainly not the least. North Carolina is one of the top 10 most visited states in the US.
The employment growth rate over the last 5 years was 5.7%, mostly driven by the key industries in the region of advanced manufacturing, financial services, automotives, health care, and information technology. Manufacturing employment growth has been 2x the national average since 2013, and over 90,000 people work in financial services. According to the Charlotte Chamber of Commerce, in Q2 of this year, $1.2B of investment was announced to come to the region, including 750 jobs from USAA and 600 jobs from Credit Karma.
Median home values in Charlotte are around $262,746 which makes it ideal for purchasing a starter home or a soft-start to a novice investment portfolio. You’ll want to check out these top neighborhoods in particular:
S Kings Dr / S Independence Blvd
E 3rd St / S Mcdowell St
East Blvd / South Blvd
Grace St / Parson St
New Life Theological Seminary / N Davidson St
Want to live like a local in Charlotte? Plan to be there on the third Saturday of the month and go to Nebel’s Alley Night Market in the South End. Stroll the alleys while exploring over 30 pop up stores featuring food, clothing, home decor and take in the sounds of live jazz as you go. Be sure to stop by Pepperbox Doughnuts to try some of their crazy delicious flavors, including vegan options!
#9: Tampa, Florida
Think the metropolitan area of Tampa-St. Petersburg-Clearwater is just for retirees and beach bound vacationers? Think again. Not only are companies finding tech talent here, it’s also one of the most popular real estate investment destinations in the US.
Tampa saw a 5 year employment growth rate of 6.5%. The top industries are Financial and Professional services, manufacturing/distribution, life sciences and healthcare, and information technology. Raymond James is just one of the 19 corporate headquarters generating $1B in annual revenue that call Tampa home. In July of this year, Tampa Bay companies raised almost $50M in funding, mostly by companies playing in the intersection between tech and healthcare.
It has the lowest median home value among its Floridan counterparts on this list, coming in at $272,903 and rents averaging $1,512. Neighborhoods to look into are:
City Center
N Meridian Ave / E Washington St
N Tampa St / W Columbus Dr
N Morgan St / E Columbus Dr
U of South Florida-Main Campus / E Fletcher Ave
If you visit Tampa and only plan to lounge on the beach, you’d be missing out! Block out an evening to spend a night under the stars watching a film in the historic Tampa Theatre, an open air theatre built in 1920 that showcases a variety of modern and classic films catering to any movie goers style.
#8: Dallas, Texas
The Dallas-Fort Worth-Arlington metropolitan area has been making headlines recently for it’s influx of residents and jobs, and you’ll see why once you visit.
Dallas saw a solid 7.3% employment growth over the last 5 years. As of 2020, the top employing industries in the area were Education and Health Services, Trade/Transportation/Utilities, and Professional Services. Top employers include Texas Instruments, Baylor University Medical Center, and AT&T. In the past 6 months of this year, over 20 companies have moved their headquarters from California to Texas, signifying a shift in jobs that is here to stay.
An abundance of single-family units have helped bring the median home price down to $199,446. These locations in the greater Dallas area offer solid opportunities for affordable purchases:
Ross Ave / Crockett St
Canada Dr / Vilbig Rd
S Vernon Ave / S Tyler St
S Lamar St / Corinth St
N Hampton Rd / Singleton Blvd
Despite being a major transit hub, the metro region boasts plenty of nature. Head to Airfield Falls in Fort Worth to see the areas only natural waterfall. Then check out Macaluso's Italian restaurant and experience great food with a great view from the patio. Be sure to order the BOG and the fettuccine special for a couple of “off the menu” treats only regulars know about.
#7: Raleigh, North Carolina
Raleigh, NC is an especially attractive location for young professionals who enjoy a balance of nature and urban activities.
Raleigh has reported a solid 5 year employment growth rate of 8%. It’s not hard to imagine why employers are drawn here, given that over 50% of the population over age 25 have at least a bachelor’s degree. This area is part of what is known as the Research Triangle Region, an area made up of three Tier 1 research universities, and because of this, Raleigh’s local economy is driven by innovative industries like Cleantech, Advanced Manufacturing, and Technology.
The real estate market here is quite evenly split among renters and owners, for both single-family and multifamily units. This urban metropolitan city is synonymous with high quality living due to it’s easy access to the ocean, mild winters, and affordable housing, especially around these neighborhoods:
City Center / Shaw U
Saint Augustines College / Oakwood Ave
S State St / Martin Luther King Jr Blvd
New Bern Ave / Poole Rd
Glascock St / Watauga St
If you want to try something off the beaten path, check out the Cloud Chamber for the Trees and Sky exhibit behind (yes, behind) the North Carolina Art Museum. It’s a unique architectural structure with a twist. If beer is more your style, head to the Raleigh Beer Gardenhttps://theraleighbeergarden.com/. With the world's largest selection of beers on tap, many local to NC, and an awesome line up of cool events like the Beer Garden Olympics, you can spend all day and night here without getting bored.
#6: Jacksonville, Florida
Jacksonville, The Bold New City of the South, is consistently rated as one of the hottest cities for businesses and has a lot to offer residents as well. Read on to see why.
This sunny coastal city has seen a 5 year employment growth rate of 8.4%. What sets Jacksonville apart from its Floridian city counterparts is the fact that the economy does not rely heavily on tourism, but rather a diverse set of industries such as Advanced Manufacturing, Aviation and Aerospace, and Finance and Insurance.
Median homes here go for around $208,860, with monthly rental prices of approx. $1,441, still making it affordable for young families and professionals. If you’re looking to make a move in Jacksonville, these neighborhoods are expected to appreciate the fastest in the next five years:
Riverside / Brooklyn
Greenland
Saint Johns Park
Manowar Ln
Hogan
If unique hand crafted cocktails are your thing, venture out to find The Volstead, Jacksonville’s (self proclaimed) best kept secret and a prohibition era speakeasy, tucked away in the waterfront area of the Urban Core neighborhood. Swing by on Sundays for free Swing Dancing (pending COVID restrictions)! For another off the beaten path adventure, head over to Big Talbot Island State Park for bird watching, kayaking, or just a peaceful walk along the beach.
#5: Nashville, Tennessee
Tennessee’s Nashville-Davidson-Murfreesboro-Franklin metropolitan area offers more than just great country music and nightlife.
Music City boasts a 9% 5 year employment growth, driven mainly by (no surprise), Tourism , Music Production, Health Care Management and Auto Production. Come for the music, stay for the job opportunities. Nashville presents a flourishing blue and white-collar community. The city has seen an influx of media professionals, corporates, and small-to-medium business owners.
Median home values here go at $278,634, with an average rental price of $1,612, which drives a higher ratio of homeowners vs renters. Explore these neighborhoods for the best real estate opportunities in town:
N 9th St / Mansfield Ave
S 16th St / Shelby Ave
Gallatin Pike / Greenwood Ave
Eastland Ave / N 16th St
Shelby Ave / S 10th St
While it’s tempting to spend your time in Nashville bar hopping the streets of Lower Broadway listening to all the live country music bands the city has to offer, consider taking a peaceful break by grabbing some lunch from the food trucks in Centennial Park and taking in views of the Parthenon replica. Of course, you have to try Hot Chicken when in Nashville. Head to Prince’s for the most authentic experience.
#4: Riverside, California
Given that California is the most populous state in the US, it’s no surprise that at least one Golden State metro made it to the top 10 list for employment growth - although you may be surprised to hear it’s Riverside-San Bernardino.
Academically savvy Riverside is a predominantly blue-collar city with a 5-year growth rate of 9.1%. The region’s large number of Financial & Accounting, Brokerage, Architectural, and Engineering firms have had a big hand in jettisoning Riverside into the top 5 of this list. The top 3 employers include the Riverside Country local government, Amazon, and the University of California.
The city fetches median home prices to the tune of $433,099, and rental prices as steep as $1,903. Why so high? Culturally diverse Riverside boasts a good number of schools, recreational amenities, and employment prospects that hike the median household income to over double that of Dallas and Jacksonville.
Neighborhoods projecting realty value-appreciation here include:
Columbia Ave / Main St
Sunnyslope
Jurupa Rd / Valley Way
Jurupa Rd / Van Buren Blvd
Lemon St / 14th St
Ready to experience some SoCal vibes? Grab some tacos and incredible margaritas while experiencing unique art installations at Tios Tacos. You can also get a dose of nature by heading to Indian Vista Overlook for a magical California sunset over the mountains.
#3: Salt Lake City, Utah
Salt Lake City has seen extraordinary growth over the last several years in terms of both population and employment, attracting homebuyers and investors alike.
Strong employment growth over the past 5 years of 9.4% has attracted many younger people to the area, making this metro the youngest city in the US with a median age of 30. Major industries include Tourism, Healthcare, and Transportation.
Median home values here kiss the $402,107 mark with rentals going as low as $985; which explains how rental investment numbers here are higher than that of home-ownership.
The unemployment rate in June was 3.2%, about half of the national average, indicating that this metro is continuing to stabilize quickly post-COVID. We see an increased demand for these locations in particular:
W 200 S / S 300 W
E 600 S / S 500 E
City Center
N 3200 W / 2100 North St
S 300 W / W 1300 S
SLC is known for its natural beauty - but why follow the crowd? Get to a lesser known, secluded waterfall in under 2 miles following the Heugh’s Canyon trail. Bring on a new meaning to the term garage band by catching an intimate musical experience at Kilby’s Court. Yes, it is literally a garage, but don’t let that turn you off. It’s a great place to find your next favorite band for less than $10.
#2: Phoenix, Arizona
The Phoenix-Mesa-Scottsdale metropolitan area has been catching the attention of many COVID migrators and investors, certainly in part to it’s strong employment growth and warm weather.
Phoenix breaks through the double digits boasting a 10.2%employment growth rate over the past 5 years. Growth in the past has been driven by Education, Healthcare, and Social Assistance, Scientific and Administrative Professional Services, and Retail, and these industries, along with Transportation and Warehousing are projected to bring the most growth to the area through 2028. With sales tax of just
Median Home values currently sit at the $283,500 mark. With sales tax at just 2.3% and landlord friendly laws, this metro attracts both business owners, investors, and workers alike.
The most investment-worthy locations here are in these neighborhoods:
N 14th St / E Fillmore St
E Indian School Rd / N 50th Pl
N 20th St / E Turney Ave
N 7th St / E Mckinley St
N 40th St / E Glenrosa Ave
Explore beyond Scottsdale if you’re planning a trip to Phoenix. Hike up Lookout and Shadow mountains for breathtaking vista views and leave the crowds behind. Reward yourself with breakfast, lunch, or dinner at Dick’s Hideaway, a rustic casual restaurant tucked away just north of the Midtown area that only locals frequent.
#1: Austin, Texas
Austin-Round Rock, TX is the leader of the pack in our top 10 list, coming in at #1 not only for employment growth but worker migration during April to October 2020 according to LinkedIn profiles.
It saw an astounding 5 year employment growth rate of 13.1%, which has made it one of the most popular real estate investment destinations in the US. A predominant 86% of the populace here are employed in white collar jobs in industries such as Advanced Manufacturing, Clean Technology, and Data Management. Austin has also embraced the IT boom and looks set on becoming one of the smartest cities in the Southwest, upping its realty investment value and appeal to tech workers.
The median home value goes for $401,796 here. The residents of the Austin-Round Rock metropolis also enjoy a healthy median household income of $71,536.
The best neighborhoods for housing opportunities in Austin are:
Pershing
E Cesar Chavez St / 1st St E
Nile St / N Pleasant Valley Rd
E 12Th St / Chicon St
E Martin Luther King Jr Blvd / Poquito St
Ready to see what all the hype is about in Austin? Spend an afternoon on the shores of Secret Beach (that is literally the name of the beach), a small sandy patch that even most Austinites don’t know about. The only downside is that it’s illegal to swim here. If you want to get your swim on, head to Sculpture Falls and beat the heat in this quiet local swimming hole.
Many of the cities on this list have continued to show strong economic recovery and growth in the post-pandemic era. As of May, 4 out of the 10 states where the metro areas in this list reside are already seeing significantly lower than the national average in terms of unemployment rates, according to the Bureau of Labor Statistics. As workers are called back to the office, even if only for a few days a week, the likelihood that they will return to these larger metro areas grows increasingly likely. As investors and as individuals, we should keep our eye on these 10 areas for future opportunities to invest and enjoy all that they have to offer.
List of References:
1 - https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html
2 - https://charlotteregion.com/pages/economic-drivers/
3 - https://charlotteregion.com/clientuploads/Data/GrowthReport/Q2_2021_GrowthReport.pdf
4 - https://www.globaltampabay.com/invest-in-tampa-bay/ii-key-industries.php#target
5 - https://www.bizjournals.com/tampabay/inno/stories/roundups/2021/08/04/tampa-bay-startups-raised-more-than-47m.html
6 - https://texaslmi.com/EconomicProfiles/TexasProfile
7 - https://www.visitraleigh.com/meetings-and-conventions/why-raleigh-nc/key-industry-clusters/
8 - https://www.coj.net/departments/office-of-economic-development/business-development/jacksonville-business-overview/targeted-industries
9 - https://www.visitmusiccity.com/explore-nashville/about/statistics#:~:text=Major%20industries%20in%20Nashville%20include,%2C%20Technology%20Manufacturing%2C%20and%20Tourism.
10 - http://www.riverside-chamber.com/demographics.cfm
11 - https://rivcoeda.org/Portals/0/demographicReports/Major%20Employers%202019.pdf?ver=2020-05-06-080926-827
12 - https://www.forbes.com/places/ut/salt-lake-city/?sh=53629bad54b5
13 - https://www.bls.gov/eag/eag.ut_saltlakecity_msa.htm
14 - https://www.phoenix.gov/ econdevsite/Documents/Industry%20Demographics%20Insert.pdf
15 - https://www.bloomberg.com/news/articles/2020-12-14/best-us-cities-to-move-to-during-covid-where-and-why-americans-are-relocating
16 - https://www.austinchamber.com/economic-development/key-industries
17 - https://www.census.gov/quickfacts/fact/table/austincitytexas/PST045219
18 - https://www.bls.gov/opub/ted/2021/unemployment-rates-lower-than-national-rate-in-27-states-higher-in-12-states-and-d-c-in-may-2021.htm