The fastest-growing local economies in the United States are increasingly concentrated in the South, according to new research from LendingTree, which found that eight of the nation’s 10 biggest so-called boomtowns are in the region. Researchers examined population growth, housing construction, workforce expansion, earnings growth, new business applications and economic output in the 50 largest U.S. metropolitan areas to identify the ones experiencing the strongest overall growth. The dominance of the South has been well-established over the past few years.
Economists have long pointed to lower taxes and less expensive housing as key drivers of southern growth, though that same rapid expansion has brought about challenges, including housing affordability pressures, traffic congestion and strain on public infrastructure. In line with this trend, the Texas capital, Austin, claimed the number one spot for the third consecutive year, followed by Raleigh, North Carolina's capital. Seattle, Washington, occupied the third spot as a lone western city, followed by Charlotte, North Carolina, and Tampa, Florida.
Completing the top 10 were Phoenix, Arizona; Jacksonville, Florida; Orlando, Florida; and Houston, Texas, and Nashville, Tennessee, in a tie. Only Seattle and Phoenix represented metros outside the South in the top 10. Austin topped the overall rankings thanks in large part to the rapid population growth it has experienced since the COVID-19 pandemic and the housing boom that has followed it.
The metro recorded the highest increase in housing units in the country, at 3.4 percent, alongside 3.1 percent population growth. LendingTree researchers also found that 17.5 percent of residents had moved from another county, state or country. Raleigh ranked second overall and led the nation in the work and earnings category, with workforce growth of 4.4 percent and median earnings growth of 6.5 percent.
According to Matt Schulz, chief consumer finance analyst at LendingTree, the South’s strong performance reflects a migration trend that has been building for years. Those are all things that make it easier to start and grow a business.” According to LendingTree, the strongest boomtowns in the United States are not simply attracting new residents, they are also creating jobs, increasing incomes and encouraging business formation. In the people and housing category, Austin ranked first, followed by Raleigh and Orlando.
The Texas capital also had the largest increase in new business applications (11.3 percent) in the country and ranked third for the share of residents who moved there from another county, state or country (17.5 percent) and fifth for population growth (3.1 percent). For work and earnings, Raleigh took the top spot, ahead of Tampa and Phoenix. The metro had the fifth-highest workforce increase (4.4 percent) and the 10th-highest increase in median earnings (6.5 percent).
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