5 Recession-Proof Cities in the U.S.
A recession may be looming in America’s near future. You don’t have to take our word for it. Based on numerous recent headlines, 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, some cities can weather a national economic crisis better than others.
The Resiliency Index: How Economists Uncover Recession-Resistant Markets
In recent research, SmartAsset evaluated our nation’s most resilient economies by examining 14 metrics across several categories: employment, housing, social assistance & healthcare, and 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.
1. Cary, North Carolina
Low unemployment rates are almost as important to a city’s affordability as cheap housing costs – after all, you need a stable income to comfortably pay your mortgage or rent. Cary routinely ranks among the nation’s top employers and workplaces for stability. Due to a highly educated workforce and booming tech sector, housing costs here account for a modest 16.28% of the median household income. The city also offers plenty of ways to cut everyday costs, including multiple public transit options and numerous parks and nature preserves for free entertainment.
2. Frisco, Texas
There is never a shortage of things to do in the Dallas suburb of Frisco. The city is a verified “shopper’s paradise,” thanks to its 9 million square feet of retail and dining space. It is equally a playground for sports lovers: Frisco is home to FC Dallas of Major League Soccer, the Frisco RoughRiders (the Double-A affiliate of MLB’s Texas Rangers), the Texas Legends in teh NBA G-League and the corporate headquarters and practice facilities for the NHL’s Dallas Stars.
The Frisco Superdrome, a 250-meter banked-oval track, hosts a variety of national cycling races. With its many places to work and play, it is no wonder that unemployment in Frisco is low, and that healthcare access and outcomes are exceptional.
3. Santa Clara, California
Santa Clara County has the highest annualized GDP growth rate across the cities SmartAsset studied, paired with one of the lowest mortgage delinquency rates in the country. Named an All-America City, Santa Clara features a variety of restaurants and top shopping destinations, including Westfield Valley Fair Mall. Adding to its stable, knowledge-based economy, the city is anchored by Santa Clara University, California’s oldest operating institution of higher learning.
4. Sunnyvale, California
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 growing population of over 154,000, Sunnyvale is a tight-knit, family-friendly community that lives up to its name in both weather and personality. Some tech giants, like LinkedIn and Yahoo, are headquartered here, ensuring that the community’s baseline unemployment rate stays safely below the national average even during broader market corrections.
5. Fort Collins, Colorado
Fort Collins was named one of our Top 25 Best Places to Live Out West in part due to the strength of its business community. The city features major, diversified employers such as Anheuser-Busch, Hewlett Packard and Wells Fargo, alongside a booming startup scene supported by Innosphere Ventures, a powerhouse regional technology incubator. Residents in Fort Collins maintain a healthy lifestyle and enjoy free outdoor activities, with a plethora of opportunities for 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.
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