Top 10 Cities with the Most Economic Growth in 2021

Updated: Sep 8, 2021

In August of 2021, the US economy has made a strong come back. The multifamily market is showing promising numbers comparable to pre-pandemic levels, national rent growth has increased by 2.5% YOY in May, and multifamily acquisitions are surpassing both the industrial and office sectors combined. Economic trends like this can be used as major tools that many syndicators and real estate investors apply to their evaluations when deciding where to invest next. A market with strong economic growth and low unemployment rates can indicate a better tenant base and therefore oftentimes higher collection rates, which are key for a strongly performing investment. Alternatively, a market with low economic growth may cause investors to stray away from investing in that market.

In order to calculate economic growth, researchers at Stessa analyzed data from the Bureau of Labor Statistics, the U.S. Bureau, and Redfin, and created a composite score on a scale of 1 – 100 per market-based on the following data points:

  • Percentage change in total employment from January to May 2021

  • Unemployment rates from May 2021

  • Average monthly building permits per capita (averaged over January to May 2021)

  • Average monthly home sales per capita (averaged over January to May 2021)

Based on the calculation of these metrics, these are The Top 10 Cities with the Most Economic Growth in 2021 with a population of at least 100,000: 10. Atlanta-Sandy Springs-Alpharetta, GA

Composite Score: 68.9


Unemployment Rate: 3.9%

Percentage Change in Total Employment: 1.1%

Median Household Income: $59,948


9. Salt Lake City, UT

Composite Score: 69.9


Unemployment Rate: 2.8%

Percentage Change in Total Employment: 1.1%

Median Household Income: $60,676


8. Tampa-St. Petersburg-Clearwater, FL

Composite Score: 70.4


Unemployment Rate: 4.6%

Percentage Change in Total Employment: 1.0%

Median Household Income: $53,833


7. Minneapolis-St.Paul-Bloomington, MN-WI

Composite Score: 71.4


Unemployment Rate: 3.8%

Percentage Change in Total Employment: 1.7%

Median Household Income: $62,583


6. Oklahoma City, OK

Composite Score: 73.0


Unemployment Rate: 3.6%

Percentage Change in Total Employment: 1.3%

Median Household Income: $55,557


5. Orlando-Kissimmee-Sandford, FL

Composite Score: 74.7


Unemployment Rate: 5.4%

Percentage Change in Total Employment: 2.8%

Median Household Income: $51,757


4. Jacksonville, FL

Composite Score: 77.9


Unemployment Rate: 4.2%