Redefining Economic Power Centers
Economic power is moving from massive coastal cities like New York and San Francisco to urban towns hidden below the Mason-Dixon line. According to a recent article by Entrepreneur, Nashville, Houston, Dallas, and Miami are set to emerge as the US’s economic superpowers[1]. Coastal cities are frequently left behind as Americans and businesses are drawn to these cities. These cities may hold the key to the future of the energy, healthcare, and financial sectors.
It’s interesting to note that the top four places in which Americans were wanting to migrate were San Francisco, New York City, Los Angeles, and Washington, DC, according to a March Redfin analysis of its user search data[2]. According to the survey, users seemed most interested in moving to Miami; Dallas and Houston came in at positions eight and ten, respectively. Reductions in taxes and housing expenses appear to be the main drivers of relocation.
Multipolar America: Rising Why?
Once upon a time, the magnetism was concentrated in the coastal areas, but today there’s a discernible shift toward a multipolar America. According to Stanford historian Niall Ferguson, this change is influenced by things like taxation, the cost of living, the quality of life, inequality in government, and the freedom to construct.
The Emerging 4 Red Cities As Powerhouses
Know Your World With Lumens
Nashville: Beyond Music to Economic Prosperity
Nashville is a city in the United States state of Tennessee. As of the 2020 U.S. census[3], it is the capital and most populous city of Tennessee, home to 689,447 people. Situated on the Cumberland River, Nashville serves as the hub of the rapidly expanding Nashville metropolitan area, ranking among the fastest-growing in the country. A 40-member metropolitan council[4], a mayor, and a vice mayor oversee the city. Nashville is also the location of the Middle Tennessee division of the Tennessee Supreme Court’s courtroom.
Nashville: The city of music is already a thriving center for technology, healthcare, and education. It may draw even more companies and entrepreneurs in the future due to its affordable cost of living, dynamic culture, and expanding skill pool.
Nashville’s unique strengths and potential drivers of future economic growth
Here is a summary of the economic information for the Nashville area, according to the U.S. Bureau of Labor Statistics[5]:
| Industry | Employment (in thousands) | Change from Oct. 2022 to Oct. 2023 | Percent Change from Oct. 2022 to Oct. 2023 |
|---|---|---|---|
| Total nonfarm | 1,174.3 | 26.2 | 2.3% |
| Mining, logging, and construction | 59.5 | -0.7 | -1.2% |
| Manufacturing | 89.7 | 2.5 | 2.9% |
| Trade, transportation, and utilities | 229.6 | 6.3 | 2.8% |
| Information | 32.5 | 0.5 | 1.6% |
| Financial activities | 77.4 | 0.8 | 1.0% |
| Professional and business services | 209.6 | 7.4 | 3.7% |
| Education and health services | 173.2 | 5.3 | 3.2% |
| Leisure and hospitality | 127.7 | 0.1 | 0.1% |
| Other services | 47.9 | 2.2 | 4.8% |
| Government | 127.2 | 1.8 | 1.4% |
With its GDP expanding at 12% in 2021, Nashville has the second-highest growth rate in the country, according to recent research[6]. Thanks to several well-known digital businesses that have plans to invest in Nashville and establish it as a significant market, the city’s economy is predicted to maintain its robust growth in the years to come. The city’s economy is changing quickly as a result of the entrance of software enterprises[7]. The expansion of Nashville’s IT sector is drawing young, intelligent, and talented professionals to the region and creating more job opportunities. Nashville’s innovative community is varied and collaborative, offering tools and support to budding entrepreneurs, making it a great area to establish and incubate enterprises.
Companies Planning To Invest In Nashville
A number of well-known digital businesses have declared their intentions to invest in Nashville and establish it as a major hub. Among these businesses are Facebook, Oracle, and Amazon. Because of these additions, the economy is growing, and there are more job prospects[8].
Houston: A Hub of Possibilities
Houston, ranking as the fourth-largest US city, boasts 26 Fortune 500 companies, trailing only NYC and Chicago. While its economy historically revolves around oil and gas, there’s immense potential for a shift towards renewable energy. With forecasts suggesting a $250 billion annual investment by 2040, Houston’s existing infrastructure and skilled workforce position it as a prime player in the evolving energy landscape.
Houston’s MSA population increased by 112,000, or 1.73%, between 2021 and 2022 and is expected to rise by 1.5% annually over the next five years[9], according to recent research by Colliers. With more than 90 distinct nations represented, Houston’s racial diversity is almost twice as high as the US average. Houston is home to 94 consulates, making it the third-largest consular corps in the US (after Los Angeles and New York). Houston’s job growth and unemployment rate are improving dramatically; in April 2022, employment surpassed pre-pandemic highs, and in December 2022, the unemployment rate dropped to 3.9 percent[10].
Although it has improved, the number of rigs in North America and the United States is still only roughly half of what it was historically. In addition, West Texas Intermediary (WTI) oil prices have dropped from recent highs achieved in the year’s first quarter[11]due to recent recession fears and the narrative surrounding “Demand Destruction.” However, as long as the conflict in Ukraine lasts and the US Special Petroleum Reserve (SPR) is depleted, supply-side limitations will persist. Long-term energy prices are anticipated to stay high owing to the current imbalances in supply and demand as well as worries about total production capacity.
Houston’s unique strengths and potential drivers of future economic growth
Here is a summary of the economic information for the Houston area, according to the U.S. Bureau of Labor Statistics[12]:
| Industry | Employment (in thousands) | Change from Oct. 2022 to Oct. 2023 | Percent Change from Oct. 2022 to Oct. 2023 |
|---|---|---|---|
| Total nonfarm | 3,389.5 | 76.6 | 2.3% |
| Mining, logging, and construction | 70.4 | 3.2 | 4.8% |
| Manufacturing | 235.0 | 7.9 | 3.5% |
| Trade, transportation, and utilities | 702.1 | 21.1 | 3.1% |
| Information | 33.4 | 0.5 | 1.5% |
| Financial activities | 189.0 | 5.3 | 2.9% |
| Professional and business services | 561.0 | 9.3 | 1.7% |
| Education and health services | 460.0 | 24.6 | 5.6% |
| Leisure and hospitality | 347.9 | 6.9 | 2.0% |
| Other services | 119.4 | -0.1 | -0.1% |
| Government | 453.8 | 9.4 | 2.1% |
Houston Facts
- The Partnership’s Research team’s 2021 edition of Houston Facts, sponsored by PNC Bank, offers a thorough almanac for the Houston area. It addresses many different subjects, such as the parks, museums, schools, cost of living, and economy of the area. It is located at[13].
A list of 30 companies in Houston has been created by Built In; these businesses represent the city’s redesigned workforce and its potential to influence Texas and beyond daily life. The list is located at[14].
- Roofstock has found 15 areas in Houston with excellent investment homes. The list is available at[15].
Dallas: The Magnet for Growth
Dallas has seen a significant increase in population and is now a center for businesses and young professionals. A burgeoning workforce and a pool of tech-savvy graduates have attracted large heavyweights like Goldman Sachs, prompting over 175 corporations to move their headquarters to this region of North Texas.
Dallas is a city with an exciting future and a rich past. Dallas has a solid economy, a well-educated populace, and competitive costs, per a report from the Federal Reserve Bank of Dallas[16]. The city’s strategic location and well-established rail, air, and highway networks will facilitate growth in the transportation and logistics industry, which employs 4.1% of the workforce in the region.
The commercial and financial services industry in Dallas is also flourishing and is predicted to keep growing. After an earlier national consolidation that raised the sectors’ local concentration, the city’s finance, insurance, and transportation industries are anticipated to continue growing.
Dallas’s unique strengths and potential drivers of future economic growth
Here is a summary of the economic information for the Dallas area, according to the U.S. Bureau of Labor Statistics:
| Industry | Employment (in thousands) | Change from Oct. 2022 to Oct. 2023 | Percent Change from Oct. 2022 to Oct. 2023 |
|---|---|---|---|
| Total nonfarm | 4,332.5 | 148.7 | 3.6% |
| Mining, logging, and construction | 254.9 | 16.0 | 6.7% |
| Manufacturing | 309.3 | 5.2 | 1.7% |
| Trade, transportation, and utilities | 918.2 | 20.5 | 2.3% |
| Information | 95.8 | 4.0 | 4.4% |
| Financial activities | 383.8 | 18.1 | 4.9% |
| Professional and business services | 820.3 | 29.3 | 3.7% |
| Education and health services | 504.7 | 13.5 | 2.7% |
| Leisure and hospitality | 419.6 | 15.2 | 3.8% |
| Other services | 146.1 | 14.9 | 11.4% |
| Government | 479.8 | 12.0 | 2.6% |
According to the U.S. Bureau of Labor Statistics, the unemployment rate in the Dallas area was 3.6% in October 2023[17] . The average weekly wage for all industries in the Dallas area was $1,590 in the first quarter of 2023. The Dallas area’s population grew by 112,000, or 1.73%, between 2021 and 2022 and is projected to grow by 1.5% annually over the next five years.
Miami: Bridging Latin America and Innovation
Miami’s appeal lies in its proximity to Latin America, drawing in a multitude of multinational corporations. Despite initial setbacks in the crypto sphere, finance companies like Elliot Management and Citadel have made Miami their home. The city’s continuous immigration influx promises robust economic growth, evident in the booming millionaire population and thriving tourism sector.
The city of Miami has grown significantly in the last several years. Given Miami’s status as the “gateway to Latin America,” it makes sense that more and more global business owners are deciding to establish and expand their operations there. Between 2017 and 2021, Florida added 119,000 jobs to the internet and e-commerce sectors, and in 2020 alone, Miami firms raised nearly $1 billion in venture capital[18].
With several well-known IT businesses planning to invest in Miami and make it a significant market, the city is swiftly becoming known as a global powerhouse for technology. Car Capital Technologies, Alto, TimelyMD, and Rosy Wellness ³ are a few of these businesses. Because of these additions, there are more work opportunities, which is growing the economy[19].
Miami’s unique strengths and potential drivers of future economic growth
Here is a summary of the economic information for the Miami area, according to the U.S. Bureau of Labor Statistics[20]:
| Industry | Employment (in thousands) | Change from Oct. 2022 to Oct. 2023 | Percent Change from Oct. 2022 to Oct. 2023 |
|---|---|---|---|
| Total nonfarm | 2,930.4 | 77.5 | 2.7% |
| Mining and logging | – | – | – |
| Construction | 143.8 | -3.1 | -2.1% |
| Manufacturing | 98.4 | 3.2 | 3.4% |
| Trade, transportation, and utilities | 665.9 | 23.1 | 3.6% |
| Information | 54.4 | -1.5 | -2.7% |
| Financial activities | 220.4 | 5.4 | 2.5% |
| Professional and business services | 532.3 | 14.7 | 2.8% |
| Education and health services | 453.9 | 20.0 | 4.6% |
| Leisure and hospitality | 330.0 | 5.2 | 1.6% |
| Other services | 115.3 | 3.2 | 2.9% |
| Government | 315.2 | 7.3 | 2.4% |
To sum up, Nashville, Houston, Dallas, and Miami all have tremendous potential to become the next great economies in the United States. Their distinct economic environments, propelled by a variety of industries and urban expansion, indicate auspicious growth paths. Furthermore, it becomes apparent that fluency in English is essential for navigating these rapidly expanding employment sectors.
