The fastest growing job markets aren’t just gaining employment—they’re driving economic shifts that companies and commercial real estate professionals can’t afford to ignore.
These booming markets, from industrial hubs in the Midwest to tech-heavy cities in the South and West, are thriving thanks to strategic industries like logistics, healthcare, and tech, which fuel higher-than-average employment growth. For businesses looking to align with growing markets, understanding where jobs are surging can mean the difference between seizing or missing out on expansion opportunities.
Commercial real estate markets thrive where job growth is strongest. Here’s a rundown of top U.S. metros fueling economic momentum:
1. White Plains, New York
New York is represented at the top of the list—but not in the way one might expect. Not Manhattan, but White Plains leads the nation in job growth, adding 106,700 jobs as of September. This metro area has frequently topped job growth lists in recent Bureau of Labor Statistics (BLS) reports, reflecting its strong recovery and sustained hiring, particularly in the wake of the pandemic.
White Plains boasts an impressive annual increase of 156,600 jobs per month as of July 2024. While its dominance may come as a surprise, given the region's high costs and challenges, it leverages its dynamic finance and tech sectors to drive unparalleled job creation. Emerging as a robust employment hub, White Plains offers businesses prime access to New York City's economic power without the elevated costs and logistical challenges of the core boroughs.
Companies can capitalize on metropolitan access while benefiting from a comparatively affordable base of operations. The area’s steady influx of talent has fostered an environment of growth that businesses would be wise to monitor closely.
2. Houston, Texas
Houston's recent job gains—adding 75,100 positions—underline the city’s status as a top contender for companies looking to expand in a business-friendly climate. Powered by its longstanding strength in energy and a flourishing healthcare sector, Houston continues to attract a wide range of industries that capitalize on Texas's competitive tax policies, low regulatory burdens, and accessible infrastructure.
Look at Houston's "no-income-tax" environment. Of course, this is very appealing for professionals and companies, drawing in diverse industries, including tech, aerospace, and manufacturing.
This combination of factors not only cements Houston’s position in the Texas economy but also signals strong potential for businesses aiming to expand.
3. Dallas, Texas
Speaking of Texas’ strong business environment, it has two cities back-to-back on this list.
Following closely behind Houston, Dallas jumped up with 60,400 new jobs, fueled by corporate expansions and a robust, diversified economy.
The city’s business landscape is thriving, driven by major sectors such as technology, finance, and telecommunications. With its central location and extensive transportation infrastructure, including the Dallas/Fort Worth International Airport, Dallas serves as a strategic hub for companies looking to scale and innovate.
Moreover, Dallas benefits from a rich talent pool and a favorable business environment, characterized by low taxes and a pro-business regulatory climate. Companies such as Toyota and Charles Schwab have made headlines for relocating their headquarters to the area, attracted by the city’s economic vitality and quality of life.
4. Los Angeles, California
Los Angeles has recorded impressive job growth, adding 60,300 new positions across various sectors. The city remains a powerhouse in entertainment, technology, healthcare, and tourism, which collectively bolster its economy. The entertainment industry continues to thrive, while the tech sector is rapidly expanding, supported by a robust network of universities and research institutions.
Tourism also plays a crucial role in job creation, providing numerous opportunities in hospitality and retail. With ongoing infrastructure improvements and a business-friendly environment, Los Angeles is positioning itself as a prime location for companies seeking growth and innovation.
5. Phoenix, Arizona
Phoenix is emerging as a formidable player in the job market, with a monthly gain of 43,500 new jobs. This is proof of its thriving economy, driven by the tech and healthcare sectors. This city's appeal lies in its blend of a burgeoning workforce and an affordable cost of living, making it an attractive destination for startups, established firms, and jobseekers alike.
Rapid growth in technology jobs, particularly in software development and cybersecurity, has positioned Phoenix as a rising tech hub, fueled by investments in education and infrastructure.
Furthermore, Phoenix's strategic focus on sustainability and renewable energy is aligning well with the growing demand for environmentally responsible business practices. As companies increasingly seek locations that promote innovation while fostering a high quality of life, Phoenix checks a lot of boxes. Its business-friendly environment, combined with a strong logistics network and proximity to major markets, makes it an ideal spot for corporations looking to expand.
Honorable Mentions, Expansion in the Midwest:
Indianapolis & St. Louis
The Midwest is making its mark, with Indianapolis and St. Louis emerging as standout cities reflecting impressive job growth in logistics and manufacturing. Indianapolis added 35,900 jobs, thanks to its strategic location and a booming logistics sector. This city has positioned itself as a vital hub for companies looking to optimize their supply chains, attracting talent and investment from across the country. The combination of a skilled workforce and an expanding infrastructure supports the growth of both established businesses and startups.
On the other hand, St. Louis is not far behind, with 31,100 new jobs fueling its resurgence. The city is capitalizing on its historical strengths in manufacturing while also diversifying into technology and healthcare. St. Louis is particularly appealing for companies in the life sciences, bolstered by research institutions and an emphasis on innovation. With a commitment to revitalizing its urban core and enhancing connectivity, St. Louis is positioning itself as a city to watch for businesses looking to tap into new markets.
Together, these cities exemplify the Midwest's resilience and adaptability, showcasing why businesses should take notice of the opportunities available in these dynamic markets. As they continue to grow, Indianapolis and St. Louis are set to become key players in the national economic landscape.
Takeaways for Tenants
As we dissect the landscape of the fastest-growing job markets in the U.S., it's evident that corporate tenants managing large-scale portfolios must remain vigilant about emerging trends, particularly the rise of unexpected players among tertiary cities.
While traditional economic hubs remain vital, a new wave of growth is sprouting in less obvious locations, offering unique opportunities that shouldn't be overlooked.
These tertiary cities, often overshadowed by their larger counterparts, are attracting businesses with affordable costs, a burgeoning talent pool, and specialized sectors like logistics and technology. This trend signals a significant shift where companies can achieve growth in areas that previously may not have been on their radar.
The trend toward tertiary cities is driven by several factors, including the decentralization of workforce talent, as employees seek out lower costs of living while retaining access to urban amenities. The pandemic has accelerated this trend, leading businesses to rethink their real estate strategies and consider locations that offer both affordability and a high quality of life.
For corporate tenants, understanding the dynamics driving these job growth trends is crucial for making informed real estate decisions. Emerging markets often represent not just opportunities for cost savings, but also access to vibrant talent pools and robust infrastructure. As sectors like logistics, technology, and healthcare continue to thrive in these regions, businesses must consider the strategic advantages these markets offer.
With shifting job markets and emerging trends in tertiary cities, it's crucial to evaluate your readiness for the new landscape. Is your commercial real estate portfolio equipped to survive the post-pandemic office apocalypse?
To find out, take our quiz today and uncover your portfolio's strengths and weaknesses! Gain insights that will help you adapt and thrive in a rapidly changing environment. Don't wait—empower yourself with the knowledge you need to succeed!
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