Ten Cities Where Americans Are Relocating
by: Lauren Sherman *

      U.S. migration may be down overall, but these vibrant metro areas are still attracting newcomers.

      Unemployment is on the rise, credit is tight, and consumers aren’t spending–which means they aren’t picking up and moving much either. Very few places in America saw significant population growth in 2008.  

      Despite the overall economic slowdown, some parts of the country keep on moving ahead, attracting more and more newcomers–even if it’s at a slower pace than in more sound economic times. These places still offer a semblance of stability, as well as great weather, cultural life and, in many cases, affordability.

Behind the Numbers

      To determine the fastest-growing metro areas in the country, we used 2008 population estimates for metropolitan statistical areas with a population over 1 million, released March 19, 2009, by the U.S. Census Bureau. MSAs are geographic entities defined by the U.S. Office of Management and Budget for use by federal agencies in collecting, tabulating and publishing federal statistics.

      We then compared the 2008 population estimates to the previous year’s data to see which areas had grown the most, percentage-wise.

The Power of Business

      When it comes down to it, a buzzing business community is a metro area’s most important characteristic, says Sean C. Safford, a professor at the University of Chicago and author of Why the Garden Club Couldn’t Save Youngstown: The Transformation of the Rust Belt. He studies the social economics of U.S. cities and metro areas.

      “Perception is driven by the vibrancy of the companies in an area,” he says.  “We don’t quite yet know what the impact of the ongoing recession will be for 2009 populations,” says Frey. “But we do know it’s not going to get any better.”

      Indeed, where Americans are relocating today has little to do with where they’ll be moving tomorrow.

RANKINGS

No. 1: Raleigh, N.C.
(Raleigh-Cary metro area)
2008 Population: 1,088,765
2007-2008 Change: 4.29%

      Raleigh, which ranked first on Forbes’ 2008 list of best places for business and careers, has done well with its hospitals, universities and more than 170 research and development companies. However, the unemployment rate for January 2009 was 7.9%, just 0.2% below the national rate.

No. 2: Austin, Texas
(Austin-Round Rock metro area)
2008 Population: 1,652,602
2007-2008 Change: 3.77%

      With one of the lowest unemployment rates in the country–6.4% in January 2009–Austin’s popularity streak continues. This has quite a bit to do with the metro area’s thriving music, film and fine arts scenes, but it’s also about the employers, which include University of Texas, Advanced Micro Devices and Dell.

No. 3: Charlotte, N.C.
(Charlotte-Gastonia-Concord, N.C.-S.C., metro area)
2008 Population: 1,701,799
2007-2008 Change: 3.36%

      Home to the Bank of America headquarters, this metro area is anything but immune to recessionary woes, with a 10.5% unemployment rate for January 2009. However, it’s also a manufacturing hub, employing 80,000 workers at 2,093 companies that produce everything from computers and electronics to industrial machinery and biomedical equipment. Those jobs offer a bit more security.

No. 4: Phoenix, Ariz.
(Phoenix-Mesa-Scottsdale metro area)
2008 Population: 4,281,899
2007-2008 Change: 2.78%

      While migration to the sunny climates of the Phoenix metro area has certainly slowed–in 2006, the region saw an increase of 4.1%; in 2007, that number dropped to 3.3%–it’s still significantly higher than most metros in the country. The unemployment rate for January 2009 was 6.7%.

No. 5: Dallas, Texas
(Dallas-Fort Worth-Arlington metro area)
2008 Population: 6,300,006
2007-2008 Change: 2.38%

      Despite the fact that the metro area’s unemployment rate for January 2009 was 7.1%, Dallas is still drawing in new residents with its diverse economy, which includes companies like Texas Instruments, TXU Energy and Southwest Airlines.

No. 6: San Antonio, Texas
(San Antonio metro area)
2008 Population: 2,031,445
2007-2008 Change: 2.34%

      With a 6.3% unemployment rate, San Antonio’s job market is faring better when compared with the country overall. The metro area’s success has a lot to do with its sizable health care and oil companies, including Valero Energy and Tesoro Petroleum.

No. 7: Houston, Texas
(Houston-Sugar Land-Baytown metro area)
2008 Population: 5,728,143
2007-2008 Change: 2.33%

      Because of its high concentration of geospace engineering firms, oil and gas operations companies, and oceanic exploration companies, Houston’s metro area ranked third on Forbes’ 2008 list of best cities for young professionals. From December 2007 to December 2008, the metro area had the fastest job growth, according to the Bureau Labor of Statistics. The unemployment rate for January 2009 was 6.5%.

No. 8: New Orleans, La.
(New Orleans-Metairie-Kenner metro area)
2008 Population: 1,134,029
2007-2008 Change: 2.22%

      Still recovering from the damage inflicted by Hurricane Katrina in 2005, New Orleans has been regaining its population slowly over the last two years after losing 22% of its people from 2005 to 2006. Due to massive rebuilding efforts, the unemployment rate is at a moderate 5.5%, 2.6 percentage points lower than the national average.

No. 9: Atlanta, Ga.
(Atlanta-Sandy Springs-Marietta metro area)
2008 Population: 5,376,285
2007-2008 Change: 2.19%

      This bustling metro area was named the best city for singles by Forbes in 2008. It’s also home to several still-healthy corporations, including Coca-Cola, and marketing firms like Catapult New Business. The unemployment rate for January 2009 was 8.7%.

No. 10: Denver, Colo.
(Denver-Aurora metro area)
2008 Population: 2,506,626
2007-2008 Change: 2.17%

      According to an October 2008 survey conducted by Pew Research Center, Denver is the most popular city in America, so it’s no surprise that this metro area still attracts newcomers. The unemployment rate for January 2009 was 7.1%; the national rate was 8.5%.

      As always, call me at (210) 273-9082 with any questions, without obligation.

* http://search.forbes.com/search/colArchiveSearch?author=lauren+and+sherman&aname=Lauren+Sherman

** Reposted from http://www.sabor.com, May 26, 2009