20 Cities Leading the U.S. Recovery

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There are four simple rules for being a resilient city in the Great Recession. Miss the housing boom, get a strong health care sector, add a large public university, and support it with stable government spending on military and local government. The cities that traded the boom-and-bust real estate business for Meds, Eds, Feds and Enlisteds got spritzed by the recession while most cities felt the full force of the economic tsunami.

Here are the 20 US cities leading the U.S. recovery. The list comes from the Brookings Metropolitan Policy Program, which ranks each metro area each quarter based on their home prices, economic growth and employment.

Augusta, GA

Augusta's got the eds, meds and enlisteds down pat with a medical college, a medical district and an army center — all of which plugged into federal spending while private sector investment dried up.

Austin, TX

In a recent survey, Brookings named Austin the most dynamic city in America. The city benefits from both resilience -- it’s a state capital in an economically prosperous state with a large public university — and enterprise, with a high-tech sector that keeps it competitive in a global economy.

Baton Rouge, LA

The world-famous American consumer hit a wall in 2008, but by 2009 parts of the world were starting to spend again. One of the country's most important deep water ports, Baton Rouge has benefited from international trade. Being a capital city that's home to Louisiana State University hasn't hurt, either.

Buffalo, NY

"What's Buffalo doing on a list of US cities leading the recovery?" asked one Atlantic staffer from Buffalo. The answer is that sometimes tortoises come out ahead of hares. With its stable of local services, the city missed the downturn just as it missed the upswing.

Dallas, TX

Dallas felt the pop of the housing bubble more than some other cities in Texas, but it's been buoyed by tech and transportation, with American Airlines, Lockheed Martin, Verizon and SBC Communications among its leading employers.

Des Moines, IA

Like many cities in the Plains, Des Moines survived the recession for at least three reasons. First, it mostly missed the housing bubble. Second, low living and labor costs across the Midwest correlate with fewer job losses. Third, Des Moines relies on local industries like insurance and health care that fared well in the national recession.

El Paso, TX

The largest employers in El Paso are (you probably guessed!) school districts, a military fort, the city government, and health networks. There's your eds/meds/enlisteds effect. It is also one of the busiest land gateways for imports and exports in the country.

Honolulu, HI

With the private sector floundering, government and international trade have helped cities weather 2010. So, it’s nice for Honolulu that it’s economic pillars are government -- both local and federal -- and Pacific trade.

Houston, TX

Oil prices fell after the economy turned down and they rose before the economy turned up. Both factors helped Houston survive a recession that hurt its financial industry. An expanded biotech sector and ongoing NASA spending also helped cushion the blow.

Jackson, MS

"Really?" you're saying. "Jackson, Mississippi?" You might not think of this state capital as leading the nation out of a recession, but in the September 2010 ranking, the city ranked in the top third in Brookings major categories: change in employment, economic growth, and home prices.

Little Rock, AR

Another stable state capital that leans heavily on government for work, Little Rock scored in the top five in stable jobs and home prices earlier this year. But as stimulus for the states winds down, it will be interesting to see if the city's other industries, like agriculture, can make up for losses to local government.

Madison, WI

It's yet another state capital (this trend is real, folks) that escaped the recession with a very moderate, two percentage point bump in its unemployment rate. About one in six workers in Madison is employed by either government (city/state/federal) or the University of Wisconsin.

McAllen, TX

McAllen's lost fewer jobs as a share of employment than any other major US city. This smaller Texas metro is famously -- or perhaps infamously -- dependent on high health care spending. In the long run, that's not a great recipe for growth. In the short run, it's a nice recession buffer.

Oklahoma City, OK

Undergoing a rejuvenation in the post-recession years, Oklahoma city has the fourth most resilient housing market in the country, according the Brookings Institution, and its immigration rate is rising as Americans flock to lower cost-of-living cities.

Omaha, NE

Like other Great Plains cities on the list, Omaha is a well-diversified city that largely missed both the boom and the bust. Between 2007 and 2010, no major city's unemployment rate was as stable as Omaha's.

Pittsburgh, PA

Powered by a famous transformation from a rusty steel city to a glimmering tech mecca, Pittsburgh is a recent addition to the Brookings list, a 21st century city that is diversified enough to lead the charge out of the recession.

Pittsburgh, PA

Powered by a famous transformation from a rusty steel city to a glimmering tech mecca, Pittsburgh is a recent addition to the Brookings list, a 21st century city that is diversified enough to lead the charge out of the recession.

San Antonio, TX

San Antonio is one of the most recession proof cities in the country. A cluster of universities, a huge medical science center, two large military bases, a stable tourism industry (that's eds, meds, enlisteds AND hotel beds) and low cost-of-living keeps growth steady, if less than dynamic.

Tulsa, OK

With two cities from Oklahoma and zero cities from California on the list, you could say this recession represents the opposite of the 1930s Dust Bowl exodus. As Oklahoma City Mayor Mick Cornett told me: It's the opposite of the Grapes of Wrath. It's the Wrath of Grapes.

Washington, DC

The federal government spent $1.4 trillion more than it made last year because, unlike other state capitals, the national capital can print money. That's good news for the array of consultants, lawyers, construction firms, and defense contractors who rely on Washington's largesse for their paycheck.

http://www.theatlantic.com/business/archive/2010/12/20-cities-leading-the-us-recovery/68119/

[mawilson 2,133]

Most of them in red states. Go figure.

[웃 910]

Red states and in the souf

[^_^ 5,021]

Most of them in red states. Go figure.

Red states and in the souf

There are four simple rules for being a resilient city in the Great Recession. Miss the housing boom, get a strong health care sector, add a large public university, and support it with stable government spending on military and local government. The cities that traded the boom-and-bust real estate business for Meds, Eds, Feds and Enlisteds got spritzed by the recession while most cities felt the full force of the economic tsunami.

Red states did miss the housing boom and they do get a ton of military pork spending so... yeah.

[Obama 2012 1,714]

There are four simple rules for being a resilient city in the Great Recession. Miss the housing boom, get a strong health care sector, add a large public university, and support it with stable government spending on military and local government. The cities that traded the boom-and-bust real estate business for Meds, Eds, Feds and Enlisteds got spritzed by the recession while most cities felt the full force of the economic tsunami.

Red states did miss the housing boom and they do get a ton of military pork spending so... yeah.

Texas being the exception.... We started growing bigger around here at the start of the decade and haven't stopped since....

[Ban Hammer 13,517]

Red states did miss the housing boom and they do get a ton of military pork spending so... yeah.

probably cause there would be lwn's protesting every day at the front gate if they were in blue states.

[^_^ 5,021]

probably cause there would be lwn's protesting every day at the front gate if they were in blue states.

yes because fort monmouth is practically under siege.

[Ban Hammer 13,517]

yes because fort monmouth is practically under siege.

:rofl: ft monmouth, what a happening place. bracc hasn't closed that place down yet?

[^_^ 5,021]

:rofl: ft monmouth, what a happening place. bracc hasn't closed that place down yet?

The point was in reference to LWNs.

Then there's the Picatinny Arsenal which is so obscure most people don't even know it's there until they manage to poke a hole in someones ceiling.

[Ban Hammer 13,517]

The point was in reference to LWNs.

Then there's the Picatinny Arsenal which is so obscure most people don't even know it's there until they manage to poke a hole in someones ceiling.

most picketing occurs where combat troops are.

picatinny, they have a live fire range?

[ready4ONE 5,400]

Texas being the exception.... We started growing bigger around here at the start of the decade and haven't stopped since....

That's strange I thought illegals were killing border states...

[luckytxn 2,265]

A lot of Texas cities there again as usual.

[TBoneTX 46,074]

A lot of Texas cities there again as usual.

Si, man. Another of same worth mentioning is Harlingen, about a half-hour east of McAllen, which ranks extremely well in cost of living. The population is approximately 57,000.

[luckytxn 2,265]

Si, man. Another of same worth mentioning is Harlingen, about a half-hour east of McAllen, which ranks extremely well in cost of living. The population is approximately 57,000.

Actually have to go down there now and again as also Laredo. Used to go shopping often but nowadays I don't dare.

[TBoneTX 46,074]

Actually have to go down there now and again as also Laredo. Used to go shopping often but nowadays I don't dare.

Nuevo Progreso (south of Weslaco on FM 1015) has always been quite safe. I love Nuevo Laredo and would visit there again (during daytime) in a heartbeat, si man. Sadly, distance interferes, sigh man.