10 Cities Ideal for Navigating an Economic Recession
Hearing the word “recession” makes some Americans tense up. Although we’re not currently in a recession, a SmartAsset study shows that some places in the U.S. are more poised to soften the blow of an economic recession if it happens.
Smooth Sailing
To scope out the best cities to ride out a recession, SmartAsset analyzed 429 places, from cities to small towns. They determined the rankings by comparing them to nine individual metrics across four categories: employment, housing, social assistance, and economic stability.
These were the results.
1: Castle Rock, Colorado
Castle Rock is the number one city to endure a recession, according to SmartAsset. Less than 1% of Castle Rock households rely on social assistance, and nearly 96% of residents have health insurance coverage. Plus, it’s just 45 minutes from Denver.
2: Highlands Ranch, Colorado
Another Colorado city did well in the rankings to ride out a recession. As a suburb of Denver, Highlands Ranch has the lowest percentage of impoverished residents in SmartAsset’s study, and roughly only 4% of residents lack health insurance. Highlands Ranch is about a 30-minute drive from Castle Rock.
3: Overland Park, Kansas
Click your heels three times, and you’ll be in a solid place to get through a recession in Kansas. Ok, maybe not, but Overland Park fared well in the study’s housing, social assistance, and economic stability categories. Seventy-two percent of residents participate in the labor force, and a low percentage are below the poverty line.
4: Kirkland, Washington
Spending the recession in a place with a strong economy is a game changer. As a suburb of Seattle, Kirkland ranked the second highest in economic stability. Its three-year GDP growth rate is 5.8%, the 16th-highest in the study.
5: San Mateo, California
Rounding out the top five is a bustling urban-suburban city about 20 miles south of San Francisco. Roughly 6% of San Mateo residents live below the poverty level, and 2% of households rely on social assistance. The city also boasts a low mortgage delinquency rate, aiding in its economically stable status.
6: Mountain View, California
One thing’s for sure: Mountain View residents know how to keep themselves covered. An impressive 98% of its residents have health insurance, more than any other city in the study. Plus, since it’s in Silicon Valley, it sees a high labor force participation rate and a low mortgage delinquency rate.
7: Sandy, Utah
Not only is Sandy one of the best places to live in Utah, but it’s also a safe bet for riding out a recession. Of its 96,272 residents, just 1.7% of households receive public assistance. Located near Salt Lake City, Sandy has a low unemployment rate of 2.5%. Less than 8% of residents report food or housing insecurity.
8: Olathe, Kansas
Another Kansas city landed in the top ten best cities to hunker down during a recession thanks to its low unemployment and mortgage delinquency rates. With a dense suburban feel and many parks, Olathe sees nearly 72% of its population in the labor force.
9: Bellevue, Washington
Located across Lake Washington from Seattle, Bellevue is a scenic and stable place for many to weather a recession. It scores high in economic stability and housing, with less than 8% of residents below the poverty level. Just over 65% of its residents are contributing to the labor force.
10: Layton, Utah
Layton takes the cake as Utah’s single largest employer within its state lines. Ideal for riding out a recession, nearly 73% of its population participates in the labor force, and less than 8% lives in poverty. A few households rely on social assistance, and about 90% of the population has health insurance.
All That Glitters
While a few California-based cities made the list, there are certainly places in the Golden State that are less than ideal during a recession. California is home to some of the fastest-growing economies in cities like Sunnyvale and Palo Alto. On the other hand, 11% of residents are unemployed in areas like Visalia, Tulare, and Merced.
Throwing Shade
Sorry, Floridians. SmartAsset found that most Florida cities will likely fare poorly in a recession. None of them crack the top 50 on this list. In Fort Lauderdale, West Palm Beach, Miami Beach, Fort Myers, and Daytona Beach, residents tend to be house-poor with lower health insurance coverage rates than others.
Already Struggling
A recession is hard enough, even for those with a nest egg to fall back on. For cities like San Marcos, Texas, and Jackson, Mississippi, residents struggle to afford necessities, and the cost of living in these areas is more than double the poverty income limit.
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