As talk of a recession grows with inflation continuing to increase, a new study says Cary ranks No. 1 among the top 50 U.S. cities for having what are called “resilient economies.” Raleigh comes in 12th, Durham 37th.
The report is from financial news site SmartAsset and amplifies assessments made by executives at JPMorgan Chase and the Federal Reserve. The rankings are based on a variety of data points, including employment, housing, social assistance and healthcare, and economic stability – strong points for the Triangle area economy with its growing population and increasingly diversified jobs base.
“Obviously, North Carolina is a great state. The Triangle is one of the fastest growing parts of America,” JPMorgan Chase Jamie Dimon recently told WRAL TV’s Sarah Krueger. “It has innovation and growth and universities and companies. It’s got everything you need.”
One key factor in Cary’s favor: “Housing costs in Cary make up just 16.38% of the median household income, which is the lowest percentage across all 286 cities in our study,” SmartAsset said.
Cary scored 90.71 out of 100 for employment, 94.48 for housing, 96.33 for social assistance and healthcare, and an economic stability score of 57.52.
The town ranked second in two categories: Housing and social assistance-healthcare. It ranks 10th in employment.
The report’s findings were recently previewed in a way by Tom Barkin, CEO of the Federal Reserve Bank of Richmond, at an event in Raleigh last month. The Triangle is considered a “shining star,” Barkin said.
That’s because the region continues to attract in-migration from talented workers who are moving to the region and will become a part of the local economy, Barkin explained.
Raleigh-Cary unemployment stood at 3.3% and Durham-Chapel at 3.2% in August, according to the most recent Bureau of Labor Statistics data. The Triangle’s housing market has been among the strongest in the country with prices soaring to record levels earlier this summer.
Scores in each SmartAsset study category are based on a 1-100 scale.
Raleigh’s scores: 73.54 employment; 87.45 housing; 75.33 social assistance/healthcare; 57.52 economic stability.
Durham’s scores: 75.81 employment; 79.22 housing; 43.02 social assitance/healthcare; 63.38 economic stability
Charlotte also cracked the top 50, placing 48th.
Here are the categories considered:
- Employment: Change in unemployment rate during Great Recession, 2020 pandemic unemployment rate, 2020 pandemic labor force participation rate and 10-year job growth.
- Housing: Change in home values during Great Recession, housing costs as a percent of income, mortgage delinquency rate and 10-year housing unit growth.
- Social Assistance & Healthcare: Percent of households relying on public assistance, average public assistance amount and percent of residents with health insurance.
- Economic Stability: Annualized three-year GDP growth rate, state inflation rate and state rainy day funds as a percent of state expenditures.
DATA AND METHODOLOGY FROM SMARTASSET:
To find the cities with the most resilient economies in the U.S., we analyzed the 300 places including cities, towns and census-designated places. Of those, 286 had available data, which we then compared across four categories and a total of 14 individual metrics. Specifically, we looked at the following:
- Employment. For our employment category, we looked at the change in unemployment rate during the Great Recession (from 2007 through 2010), 2020 pandemic unemployment rate, 2020 pandemic labor force participation rate and 10-year job growth. Data comes from the Census Bureau’s 2007 and 2010 1-year American Community Surveys, as well as the 2020 5-year American Community Survey.
- Housing. For our housing category, we looked at the change in median home value during the Great Recession (from 2007 through 2010), housing costs as a percentage of income, the mortgage delinquency rate as of December 2021 and 10-year housing unit growth. Data comes from the Census Bureau’s 2007 and 2010 1-year American Community Surveys, as well as 2020 5-year American Community Survey and the Consumer Financial Protection Bureau (CFPB).
- Social assistance & healthcare. For our social assistance & healthcare category, we looked at the percentage of the population relying on public assistance, average annual amount of assistance per household and percentage of residents with health insurance coverage. Data comes from the Census Bureau’s 2020 5-year American Community Survey.
- Economic stability. For our economic stability category, we examined the annualized three-year GDP growth rate, state inflation rate from January 2021 through May 2022 and state rainy day funds as a percentage of state expenditures. Data comes from the Joint Economic Committee, Bureau of Economic Analysis and the Pew Charitable Trusts’ Fiscal 50: State Trends and Analysis report.
Original Article Source: WRAL TechWire