America’s metropolitan areas are resilient, and adaptable, but the economic power of the United States has been shifting to some new and surprising cities.

Area Development’s 2024 Leading Metro Locations report, compiled with data from Chmura Economics & Analytics, provides an in-depth look at which cities are thriving, which regions are gaining ground, and what key factors are driving growth in today's economic landscape. With a special emphasis on factors like prime workforce availability, economic strength, and affordability, this year’s report offers helpful insights for corporate site selectors, businesses looking to expand, and economic development professionals nationwide.

Top Overall Performers: Steady Growth and Rising Stars
Unsurprisingly, some of the most familiar cities remain at the top of the list, but the 2024 rankings also reveal several emerging hotspots that are gaining ground in the ever-competitive world of economic development.

Leading the overall rankings, Brownsville-Harlingen, TX, takes the top spot, reflecting the growing economic significance of the Southwest, particularly thanks to the SpaceX effect. The company’s operations in nearby Boca Chica have transformed Brownsville into a high-tech manufacturing hub, with SpaceX investing more than $3 billion in infrastructure and driving job growth across the region. With over 21,000 indirect jobs supported and a growing focus on advanced manufacturing, Brownsville exemplifies how strategic investments in key industries can propel smaller metros to national prominence.

Overall Rank

“The number of SpaceX jobs has helped Brownsville stand out in the research—job ads are a leading indicator of future employment, and SpaceX accounts for more than 12% of total job STEM job ads in the metro area, ” says Patrick Clapp, a Senior Economist at Chmura Economics. The Starbase complex in Boca Chica, the sole private facility for SpaceX, is focused on commercial launches, and “the additional regional spending from high-wage jobs generates ripple impacts that support additional growth in the area.”

Other top overall performers include Salt Lake City, UT, and Miami-Miami Beach-Kendall, FL, two metros that have consistently ranked highly because of their balanced economic growth, diverse industries, and ability to attract high-skilled labor. Salt Lake City stands out for its long-term resilience, having shown steady economic growth across tech, healthcare, and finance sectors. Miami, on the other hand, continues to attract major investments in tech and climate innovation, solidifying its reputation as a second-tier tech hub with a focus on climate resilience and fintech.

Prime Workforce Availability: The Cities Attracting Top Talent
One of the strongest indicators of a metro's economic health is the availability of a prime workforce, and the 2024 report highlights several metros that are excelling in this regard. Salt Lake City ranks highly because of its strong educational institutions, affordable cost of living, and diversified industries, all of which have made it a magnet for tech talent. Similarly, Olympia-Lacey-Tumwater, WA, which secured the No. 3 spot in the overall rankings, has become a key player in the STEM fields, particularly in research and development and advanced manufacturing. With a well-matched workforce for critical industries, Olympia has established itself as a hub for long-term growth.

Meanwhile, cities like Austin, TX, and Seattle, WA, lag in workforce strength even though they are bolstered by major tech companies like Amazon and Microsoft and enjoy a strong pipeline of talent from local universities. Austin's rank belies its reputation as a tech startup haven with an influx of venture capital and high-salary job opportunities.

Economic Strength: Long-Term Stability in Key Regions
In terms of economic strength, the 2024 report emphasizes the importance of long-term stability and the ability to sustain growth across multiple sectors. Salt Lake City and Brownsville-Harlingen not only excel in attracting talent but also in maintaining stable economic growth across diverse industries, from aerospace to advanced manufacturing. Similarly, Tallahassee, FL, has emerged as a surprise contender, benefiting from its strong government and education sectors, which provide a stable foundation even during broader economic upheavals.

One of the more unexpected results is the high performance of El Centro, CA, one of the few California cities to rank strongly, largely due to its affordable housing and strategic location near the U.S.-Mexico border, which supports its robust logistics and trade industry.

Prime Workforce

“Digging into the story behind the economic fundamentals revealed some exciting opportunities in the region,” says Clapp. The Salton Sea in El Centro contains the highest concentration of lithium in geothermal brines in the world. Lithium is a key component of batteries in electric vehicles, smartphones, and clean energy technologies. But unfortunately, just 1 percent of global supply is from the U.S, he explained.

The federal government is putting millions of dollars in investments to secure a domestic supply, and this area has enough to meet domestic and even global demand for decades. The Department of Energy calls it potentially among the most important energy projects of the 21st century. As Clapp summarized, “in addition to the existing strengths in advanced manufacturing and logistics in the region, this supply of a critical element has the potential to completely reshape the region.”

• Small Metro Leaders: Brownsville-Harlingen, TX, tops the list for small metros, powered by its high-tech investments and proximity to SpaceX’s operations. Olympia, WA, also emerges as a top contender in this category, benefiting from its growing STEM industries and relatively affordable housing market in the Pacific region.
• Medium Metro Leaders: Among medium metros, Chattanooga leads the pack, offering long-term growth and a highly skilled workforce. The city’s economy has weathered the pandemic well, continuing to attract tech companies and advanced manufacturing investments.
• Large Metro Leaders: For large metros, Miami continues to dominate because of its established tech industry and growing finance industry, but it faces significant challenges in terms of housing affordability, as the city is struggling with rising housing costs despite its economic growth, presenting a critical challenge for local businesses looking to attract and retain talent.

Housing Affordability: A Growing Divide
One of the most significant challenges highlighted in the 2024 report is the growing divide between economic growth and housing affordability. Cities like Miami and San Francisco offer abundant high-paying jobs in sectors like fintech and tech, but their rising housing costs are creating barriers for lower- and middle-income residents. In Miami, nearly half of all households are housing cost-burdened, and while the city continues to see strong growth in tech and climate innovation, housing affordability threatens to undermine that progress.

By contrast, smaller metros like El Centro, CA, and Brownsville, TX, have managed to keep housing costs more affordable while still experiencing significant economic growth. This makes them attractive options for businesses and workers alike, particularly in the logistics and manufacturing sectors.

Economic Strength

The Rise of Climate Innovation: New Opportunities in Tech
A key trend identified in this year’s report is the rise of climate innovation as a major economic driver, particularly in regions like South Florida and California. Miami’s designation as a Climate Ready Tech Hub underscores the growing importance of climate resilience technologies, from clean energy solutions to coastal defense systems. This is a trend that is likely to accelerate, as cities look to balance economic growth with sustainability in the face of growing climate challenges.

A New Economic Map for U.S. Metros
The 2024 Leading Metro Locations report paints a dynamic picture of economic growth across the U.S., highlighting both familiar leaders and new contenders. Regions like Salt Lake City, Brownsville, and Olympia have proven that long-term planning, strategic investments in key industries, and maintaining affordable living conditions can propel metros to the top of the rankings. Meanwhile, the growth of climate tech and the increasing challenges of housing affordability present new opportunities and hurdles for metro areas in the coming years.

For businesses and site selectors, the key takeaway is clear: while traditional powerhouses like Miami and San Francisco remain important, the future lies in cities that can offer a combination of workforce strength, economic stability, and livability. As the U.S. economy continues to evolve, these metros will be the ones shaping the next decade of growth.