A recent report released by the U.S. Conference of Mayors indicated that nearly all cities in the U.S. can expect to see a boost in economic growth over the coming year.
Naples, Fla., is expected to lead the country in economic growth and job gains, while other large cities such as Raleigh, Atlanta and Austin are also expected to see large gains, REALTORMag reports.
According to the report, which was compiled by IHS Global Insight, cities hit hardest by the manufacturing decline and housing crisis are likely to see large rebounds in 2014. Youngstown, Ohio, and Buffalo, N.Y., are expected to post growth rates of 1.6 percent and 1.5 percent, respectively.
“The key thing in the northeast was the stabilization of housing,” Jim Diffley, a senior director at IHS and lead author of the report, said, according to REALTORMag. “When prices normalized and people weren’t underwater anymore, small but positive job growth has been able to stimulate spending.”
Shreveport, La., is expected to see one of the largest turnarounds—a 1.6 percent economic growth increase falling a 5.2 percent decline last year.
Large urban areas such as New York, Chicago and Los Angeles, however, are expected to grow slower than average, which Diffley attributes to the quick employment recovery in the cities, REALTORMag reports.
Overall, the report estimated that 340 of 363 metro areas—up from 183 last year—in the U.S. would likely see economic growth of 1.1 percent of higher in 2014. Sixty-nine of the 363 metro areas are expected to see a growth increase of three percent or more, while only seven will likely not see any growth in the coming year.
“Two thirds of metros have still not gotten back to 2007 or 2008 peak levels of employment, and half of those won’t get there for another three years,” Diffley said, according to REALTORMag. “Financial crises do not produce normal recessions in the U.S.”