A new study by the American Association of State, County and Municipal Employees (AASMTE) suggests the best cities for moving to when the economy is booming.
The study found that if the economy improves and more people move to the region, the region can expect to see a 10% jump in economic activity.
“There are two things you can expect in terms of an economy that is doing well,” said Andrew Kocher, the director of research and analysis for AASMte, in an interview with New York magazine.
“One is you’re going to see more people moving in, so you’re getting more jobs for your workers, and two is you’ll have a much greater share of workers living in the region.
And if that happens, that can create jobs in the city as well.”
The report found that while the region is still struggling with its housing crisis, there is a “clear correlation” between economic conditions and a higher percentage of people living in cities.
The researchers looked at the number of people who live in cities in each state, and then calculated the number that were living in their cities.
For instance, if a city’s population is 10% larger than it was before, it has a 50% higher chance of experiencing a 5% increase in the number living in that city.
The report also looked at how many people were employed and how much they earned in each city.
If the economy grew faster in a city, the researchers found that it would increase its percentage of employed workers by an additional 15% to 40%.
“It’s clear that there is an overall positive correlation,” said Kocber.
“The economic growth is the catalyst, but the housing situation is also the driver.”
He also pointed out that when the number for people in a region is the same as the number it was prior to the economic downturn, the economy grows faster than when the region’s population density is the lowest.
That may sound like a good thing, but Kocmer noted that cities are often in a downward spiral.
In the past decade, cities have gone from having a population of 3.7 million to less than 2.5 million, according to the U.S. Census Bureau.
“When you’re a smaller city, you have fewer people,” he said.
“You have fewer businesses.
You have fewer places for people to live.
You lose businesses.”
If the region continues to experience the same pattern, it may see more and more cities in decline, as Koccher explained.
Cities can see the effects of this as well.
The region’s economy will likely shrink when the population falls below 3.3 million and when it grows to 3.9 million, he said, because there will be fewer people.
“It will reduce employment.
It will reduce economic activity,” he added.
“And then the decline will take place in the cities that are already gone, because the economic impact is so much greater than in the smaller cities.”
Kocger noted that many states have been experiencing slow economic growth and stagnant or declining population growth.
That trend will continue, he added, unless the region improves its economic performance and moves more people to cities.