The highly reputable Brookings Institute has presented an in-depth analysis of the current economic recession, comparing cities around the world and showing Austin as one of the top cities internationally.
The report measures the economic performance of metropolitan areas by looking at the annual growth rate of Gross Value Added (GVA) per capita and the annual growth rate of employment. The combination creates a picture of the standard of living and the opportunities in the labor market to determine the healthiest metropolitan areas around the globe.
The report assess the performance ranking scores in three different time periods: Pre-recession (from 1993 to 2007); During the recession (from 2007 to 2010); and the Recovery Period (from 2009 to 2010). Austin ranks highly in all three time frames, especially compared to the other U.S. Metropolitan areas.
PRE-RECESSION PERIOD (1993 – 2010)
During the pre-recession period analyst by Brookings, Austin ranked 25th internationally. Only two U.S. Metropolitan areas ranked higher using the GVA and Employment valuations, Las Vegas (14th) and Phoenix (20th). 16 U.S. Metropolitan regions are included in the top 75 and Dallas (71st) is the only other Texas city besides Austin to be included in the list. Internationally, China had a number of metropolitan areas in the top 25 with other Asian regions dominating the rankings.
The table below indicates the top 75 metropolitan areas worldwide with both their income and employment scores listed.
RECESSION PERIOD (2007 – 2010)
During the recession, Austin dropped in the overall rankings to the 40th position and was still the third highest performing U.S. Metropolitan region. However, the two U.S. regions were different from the ones that ranked ahead of Austin during the pre-recession period. San Antonio (32nd) took the top U.S. ranking with Washington D.C. (36th) also above Austin. Notice that Las Vegas and Phoenix, the two metropolitan areas that ranked ahead of Austin in the pre-recession period fell completely out of the top 75. Dallas held on to the final spot in the top 75. Also of note is the complete dominance of Chinese metropolitan areas at the top of the chart. The Brookings Institute report looked at the period between 2007 and 2010 and calculated the rankings based on the year of minimum growth in that period for each metropolitan area.
RECOVERY PERIOD (2009 – 2010)
As we exit the recession and move into recovery, the rankings change once again with Austin taking top honors among U.S. regions on the list. China’s dominance wanes, though they still have a number of metropolitan areas in the top 10 internationally. Istanbul claims the overall top ranking and we see a number of Latin American areas within the top 25. Austin holds the number 26 spot and is the best among all U.S. Metropolitan regions, followed by Virginia Beach (36) and Washington D.C. (37). Dallas moves all the way up to 39th and San Antonio (51) and Houston (61) also make the top 75. Phoenix reappears on the list, but down at number 68.
For the complete report, including in-depth explanations of the methodology and expanded ranking tables showing the top 150 areas in each time period, please click here.
Austin is once again proving to be the shining light in the U.S. economic recovery and we are so proud to live and work here within the highest ranking metropolitan region in the U.S. The recovery has started and it is Austin that will lead us to better times. The Brookings Institute report is a comprehensive analysis that shows us what we already inherently know by how it feels here in Austin: We are poised for an amazing future and Mission Mortgage is excited to see what lies ahead.