Fastest-Growing Cities in America

Experts might not agree on the “best” or the “right” recipe for rapid economic growth, but some cities know the key ingredients for long-term prosperity better than others. Patterns emerge within those cities, allowing us to identify what factors contribute to a lasting cycle of growth. The South and West currently seem to be attractive places to move, as the U.S. Census Bureau reports eight of the 15 cities with the largest population gains between 2010 and 2019 were located in the South and five were in the West.

Some cities thrive even through hard economic times, including the current COVID-19 pandemic, while others struggle. To determine where the fastest local economic growth has occurred in the U.S., WalletHub compared 515 cities of varying population sizes based on 17 key measures of both growth and decline over a period of seven years. Our data set ranges from population growth to unemployment rate decrease to growth in regional GDP per capita. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

Main Findings

Fastest-Growing Cities in the U.S.

*No. 1 = Fastest-Growing

Ranking by City Size

*No. 1 = Fastest-Growing
 

Ask the Experts

Rapid city growth can yield both positive and negative effects. Some cities thrive as they expand while others struggle to keep up. For insight into these dynamics, we asked a panel of experts to weigh in with their thoughts on the following key questions:

1. What are the biggest challenges faced by cities experiencing rapid population growth?
2. What should be the key priority for local authorities who want to grow their cities?
3. Should local authorities do more to ensure current residents aren’t “priced out” of established neighborhoods in the face of population growth? What are good models for supporting gentrification without displacing residents?
4. To what extent are zoning policies and “NIMBY-ism” responsible for skyrocketing housing costs in cities experiencing population growth?
5. Are entrepreneurship and employment opportunities disproportionately better in cities that are growing quickly? How so?
6. Should we expect to see a reshaping of large cities in the wake of the COVID-19 pandemic (e.g. migration of families towards suburbs, repurposing open air spaces, redesigning high density areas?

Ask the Experts

John Rennie Short
Professor, School of Public Policy – University of Maryland, Baltimore County
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Tom Daniels
Professor, Department of City and Regional Planning – University of Pennsylvania
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Robert M. Silverman
Professor, Department of Urban and Regional Planning, School of Architecture and Planning – University at Buffalo, The State University of New York
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Gary Green
Professor Emeritus – University of Wisconsin – Madison
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Mike Reibel
Professor of Geography – California State Polytechnic University, Pomona
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Stephen M Wheeler
Professor, Department of Human Ecology – University of California, Davis
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More Experts

Methodology

In order to determine the most rapidly growing local economies, WalletHub compared 515 cities of varying population sizes based on two key dimensions, “Sociodemographics” and “Jobs & Economy.”

We evaluated those dimensions using 17 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the fastest economic growth. For each metric, we analyzed data spanning from 2013 to 2019 with the exception of “Increase in Number of Startups” (from 2010 to 2014), “Increase in Number of Businesses” (from 2014 to 2018), “Growth in Regional GDP per Capita” (from 2013 to 2018), Increase in Number of Technology Companies (from 2014 to 2018) and Increase in Venture Capital Investment Amount (from 2012 to 2016).

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

In determining our sample, we considered only the “city proper” in each case and excluded cities in the surrounding metro area. We categorized each city according to the following population-size guidelines:

• Large city: More than 300,000 people
• Midsize city: 100,000 to 300,000 people
• Small city: Fewer than 100,000 people

Sociodemographics - Total Points: 50

• Population Growth: Double Weight (~25.00 Points)
• Working-Age Population Growth: Full Weight (~12.50 Points)
  Note: “Working-Age Population” includes individuals aged 16 to 64.
• Growth in Share of College-Educated Population: Full Weight (~12.50 Points)
  Note: “College-Educated Population” includes individuals with at least an associate’s degree.

Jobs & Economy - Total Points: 50

• Job Growth: Double Weight (~6.45 Points)
• Increase in Ratio of Full-Time to Part-Time Jobs: Half Weight (~1.61 Points)
• Median Household Income Growth: Full Weight (~3.23 Points)
• Growth in Share of Households with Annual Income Above $75,000: Full Weight (~3.23 Points)
• Unemployment Rate Decrease: Full Weight (~3.23 Points)
• Poverty Rate Decrease: Full Weight (~3.23 Points)
• Growth in Regional GDP per Capita: Double Weight (~6.45 Points)
• Increase in Number of Businesses: Full Weight (~3.23 Points)
• Increase in Number of Startups: Full Weight (~3.23 Points)
• Increase in Venture Capital Investment Amount: Full Weight (~3.23 Points)
• Growth in Number of Technology Companies: Full Weight (~3.23 Points)
• Median House Price Growth: Full Weight (~3.23 Points)
• Building-Permit Activity Growth: Full Weight (~3.23 Points)
• Foreclosure Rate Decrease: Full Weight (~3.23 Points)

 
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, National Venture Capital Association and Renwood RealtyTrac.

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