Just the word alone says it all — Boomtowns — where economic growth hits the pavement, so to speak.
Smartasset once again has assembled their list of the top boomtowns in 2017. These top-10 are just not hot, but super-hot, as these were identified after examination of 581 cities across the U.S. The following five factors were included in identification and ranking of the top 2017 boomtowns:
- Net Migration Rate Number of people who moved in versus the number moving out of a city from July 1, 2015 to July 1, 2016, as a percentage of the of the city’s total population. By definition this excludes births and deaths
- Housing Growth Rate Percent change in the number of housing units from 2015 and 2016 – per the 2016 1-Year American Community Survey from the U.S. Census Bureau
- Unemployment Rate Number of people actually seeking a job in August 2017 as a percentage of the total labor force – per the U.S. Bureau of Labor Statistics (BLS)
- Annual Change in the Unemployment Rate Change in the unemployment rate (preliminary) from August 2016 to August 2017 – per the BLS
- GDP Growth Rate Annual growth in total output from 2011 to 2016 – per the U.S. Bureau of Economic Analysis
Using these factors, smartasset calculated a score based on the number of standard deviations from greater than or less than the mean each city rated. Half-ratings were applied to the two unemployment factors and full weightings to the remaining three. Each city was then ranked on the number of standard deviations, with the greatest total score receiving a 100 and lowest a zero.
So where are the hottest economic growth cities in the U.S. according to smartasset’s methodology? When viewing the findings in the following table, it makes you question if they should renamed this the list of hot cities in Florida with two token others since eight of the top 10 are from the Sunshine state.
There is material duplication, so-to-speak, in the top-10 rankings. Town ‘n’ Country and Riverview, Florida, are located in Hillsborough County, which is included in the Tampa-St Petersburg-Clearwater, Florida Metropolitan Statistical Area (MSA). The same is true with Spring Hill, Florida, which is located in Hernando County, also a component of the Tampa-St Petersburg-Clearwater MSA. Largo Florida, situated in Pinellas County, is also a part of the Tampa-St Petersburg-Clearwater MSA. So if Tampa and St Petersburg are included, the Tampa-St Petersburg-Clearwater MSA makes up more than one-half of all the 2017 U.S. boomtowns (six out of 10). That’s impressive.
Given the inclusion of the metric for increased housing, it is expected to not see any cities where rigorously restrictive planning and zoning impedes the ability to construct new housing in a timely fashion.
Just as they say in the stock market, “Past performance does not guaranty future results,” the same likely applies to boomtowns. Not one of the top-10 from 2016’s list made the 2017 premier group.
To read the entire smartasset study click https://smartasset.com/mortgage/boomtowns-2017
Still, the amazement of eight out of 10 being from Florida says something about the regulatory environment in the Sunshine state supporting strong economic growth. Note that all 10 of the top-ranking 2017 boomtowns are from states that have no individual state level income tax.
Just my 2 cents. And if you live in any of these boomtowns, you get to keep the entire two cents due to no state income tax.