The most recession-resistant cities
Economic uncertainty is something the world has navigated for the last few years. Many researchers and economists have been waiting to declare a recession, which signals a prolonged period of economic decline.
And while these recession predictions have yet to come true, some cities are better poised to handle a downturn in the economy than others.
The Zebra set out to find the best cities for riding out a recession by analyzing the 50 most populous cities in the U.S. using four data points:
- Unemployment: Strength in jobs is a good indicator that a recession would be less painful in a specific area. The total unemployment rate for the country is 3.8%.[1]
- Cost of living: The cost of living index indicates how expensive it is to live in a city. The baseline used in 100, which is the score given to New York City. Cities are then scored higher or lower depending on local costs.[2]
- GDP growth: In the second quarter of 2023, the overall U.S. gross domestic product grew at an annual rate of 2.4%. Some areas have contributed to that growth more than others.[3]
- Confidence in housing security: Housing insecurity is an important factor to measure. We looked at the percent of city residents who either recently missed a housing payment or had low confidence that they can pay next month's rent on time. For comparison, this number is 26.5% for the U.S. as a whole.[4]
Here are the top 10 cities for navigating a recession thanks to strong jobs, economic growth, lower living expenses and housing security.
Even if you live in one of these top 10 recession-resistant cities, safeguarding your home investment is essential. Ensure your peace of mind with reliable home insurance tailored to your needs.
Methodology
The Zebra pulled four data points to analyze the top 50 MSAs (by population) in the U.S. related to the strength of local economies:
MSA data was used where applicable, and we sometimes substituted city or state data as necessary.