50 of the Fastest-Growing Metro Areas of the United States
by King White, on Sep 23, 2015 10:07:38 AM
As companies search for locations to expand, population growth is a key indicator that can identify high-growth metro areas for a variety of corporate functions such as headquarters, manufacturing plants, distribution centers, call centers, retail stores and other corporate facilities.
“Companies have become very focused on high-growth markets where the influx of labor and consumers can maximize their return on investment,” said Brett Bayduss, Principal of Site Selection Group. To identify regions for companies to target, Site Selection Group evaluated historic and future population growth trends to find the metro areas positioned to outperform the rest of the United States.
Metro areas with the highest population increase
From a sheer population standpoint, large metro areas incurred the highest net population growth. New York City, Charlotte, N.C., and Washington had the highest growth by adding more than 2 million people. Some other notable strategic markets included Dallas-Fort Worth, Indianapolis, Denver and Orlando, Fla., which continue to attract major corporate expansions. The following table identifies the top 25 metro areas that had the highest increase in population between 2011 and 2015.
Top 25 Fastest Growing Metro Areas
Population Increase (2011-2015)
| Metro Area | Population Increase |
|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | 1,025,060 |
| Charlotte-Concord-Gastonia, NC-SC | 559,890 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 453,976 |
| Houston-The Woodlands-Sugar Land, TX | 431,109 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 329,930 |
| Dallas-Fort Worth-Arlington, TX | 323,832 |
| Riverside-San Bernardino-Ontario, CA | 232,625 |
| San Francisco-Oakland-Hayward, CA | 220,223 |
| Los Angeles-Long Beach-Anaheim, CA | 214,137 |
| San Antonio-New Braunfels, TX | 202,777 |
| Indianapolis-Carmel, IN | 200,787 |
| Seattle-Tacoma-Bellevue, WA | 188,651 |
| Denver-Aurora-Lakewood, CO | 185,357 |
| Orlando-Kissimmee-Sanford, FL | 180,968 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 179,781 |
| Nashville-Davidson-Murfreesboro-Franklin, TN | 176,568 |
| Phoenix-Mesa-Scottsdale, AZ | 175,678 |
| Columbus, OH | 168,765 |
| Boston-Cambridge-Newton, MA-NH | 165,830 |
| Austin-Round Rock, TX | 154,314 |
Forecasted population growth rates in 25 of the fastest-growing metro areas
The percentage growth rate is another way to measure a market’s potential as it does not penalize smaller metro areas. The overall winners are mostly small to mid-size metro areas such as the North Dakota metros of Williston and Dickinson and the West Texas metros of Andrews and Midland. These four metros have grown during recent years because of the rise in domestic oil and gas production. Austin-Round Rock, Texas, and Provo-Orem, Utah, are also projected to rise to the top due to the growth of information technology and services industries. Other notable mentions include Myrtle Beach and Charleston, S.C.; Sioux Falls, S.D.; and the Florida Panhandle metro of Crestview-Fort Walton Beach-Destin. The following table identifies the top 25 metro areas that have the highest forecasted percentage growth rate between 2015 and 2020.
Top 25 Fastest-Growth Metro Areas
Forecasted Growth Rate (2015-2020)
| Metro Area | Forecasted Growth Rate |
|---|---|
| Williston, ND | 13.83% |
| Dickinson, ND | 13.30% |
| The Villages, FL | 13.06% |
| Andrews, TX | 12.07% |
| Heber, UT | 10.98% |
| Midland, TX | 10.58% |
| Minot, ND | 10.04% |
| Casper, WY | 9.44% |
| Austin-Round Rock, TX | 9.30% |
| Elko, NV | 9.28% |
| Odessa, TX | 9.11% |
| Dunn, NC | 9.05% |
| Myrtle Beach-Conway-North Myrtle Beach, SC-NC | 8.89% |
| Bismarck, ND | 8.87% |
| Weatherford, OK | 8.87% |
| Sioux Falls, SD | 8.68% |
| Crestview-Fort Walton Beach-Destin, FL | 8.65% |
| Fargo, ND-MN | 8.45% |
| Vernal, UT | 8.41% |
| Charleston-North Charleston, SC | 8.40% |
| Provo-Orem, UT | 8.32% |
| Elk City, OK | 8.27% |
| Woodward, OK | 8.27% |
| Hilton Head Island-Bluffton-Beaufort, SC | 8.21% |
Conclusions
Many factors should be evaluated when a company searches for the best locations for its headquarters, manufacturing plants, distribution centers, call centers, retail stores or other corporate facilities. Population growth is one of those factors; however, it is important to understand why a metro area is incurring such growth before making a location decision. Other factors that often accompany high-growth markets such as low unemployment, wage inflation and excessive employee attrition should be considered during the site selection process.
