5 Recession-Proof Cities in the U.S.
Looking to insulate from inflation and find a great place to ride out a recession wave? These five cities should be on your list.
A recession may be looming in America’s near future, and you don’t have to take our word for it based on numerous recent headlines as the stock market is down and inflation is (way) up.
This raises a timely question: Is anywhere safe from the effects of a recession?
While a recession certainly affects the whole country, it turns out that some cities can weather a national economic crisis much better than others.
In recent research, SmartAsset evaluated our nation’s most resilient economies by looking at 14 metrics across several categories: employment, housing, social assistance & healthcare, as well as economic stability. They evaluated the 300 largest cities in the U.S. and named some of our favorite mid-sized cities as their most resilient.
If you don’t like the way this economy is headed, here are five great cities that, according to SmartAsset’s research, might be able to offer some comfort.
To read more about SmartAsset’s research on resilient economies, their methodology and their other most resilient cities, head over here.
In This Article
1. Cary, NC
Low unemployment rates are almost as important to a city’s affordability as cheap housing costs. (You need an income to pay for that mortgage!) Cary came in 10th for employment in Smart Asset’s research, and housing costs here make up 16.28% of the median household income. The city also provides plenty of ways to cut costs, such as multiple public transit options and numerous parks and nature preserves for free entertainment.
2. Frisco, TX
There is never a shortage of things to do in the Dallas suburb of Frisco. The city has been described as a “shopper’s paradise” because of its 9 million square feet of retail and dining. It could also be described as a sports lovers’ paradise, as it’s home to FC Dallas of Major League Soccer, the A.A. affiliate of MLB’s Texas Rangers, an NBA D-League team, and the practice facility of the NHL’s Dallas Stars. The Frisco Superdrome, a 250-meter banked-oval track, hosts a variety of cycling races. With all its places to work and play, it is no wonder unemployment in Frisco is low and healthcare access and outcomes are exceptional.
3. Santa Clara, CA
Santa Clara County has the highest annualized GDP growth rate across the cities SmartAsset studied and also the lowest mortgage delinquency rate of the surveyed cities. Named an All-America City, Santa Clara features a variety of restaurants along with top shopping destinations such as Westfield Valley Fair Mall. At the same time, Santa Clara University is California’s oldest institution of higher learning.
4. Sunnyvale, CA
The small city of Sunnyvale is located south of Palo Alto and directly north of Cupertino, yet many people outside of Silicon Valley have never heard of it. With a population of about 150,000, Sunnyvale is a tight-knit, family-friendly community that lives up to its name in both weather and personality. Some huge companies like LinkedIn and Yahoo are headquartered here, and even in 2020, this community’s unemployment rate stayed below 4%, according to SmartAsset.
5. Fort Collins, CO
Fort Collins was named one of our 2023 Top 100 Best Places to Live in part due to the strength of its business community, featuring major employers like Anheuser Busch, Hewlett-Packard and Wells Fargo, as well as entrepreneurial ventures that receive support from the Larimer Small Business Development Support Center and the Rocky Mountain Innosphere, a technology incubator. Fort Collins residents maintain a healthy lifestyle and enjoy free things to do outside with a plethora of outdoor recreation opportunities, including biking, hiking, and whitewater rafting. SmartAsset says 94% of residents have health insurance.
To read more about SmartAsset’s research on resilient economies, their methodology and their other most resilient cities, head over here.