When the economic going gets tough, don’t give up. Instead, find one of America’s most recession-proof cities in which to live and work. A list of them has been compiled by New York personal finance technology company SmartAsset.
There couldn't be a better time to start looking.
Americans have faced challenging financial times throughout this country’s history, from the Great Depression of 1929 to the Great Recession of 2008, but nothing like its latest recession, caused by the Great Pandemic of 2020. Americans face a new economic threat so small it can’t be seen with the human eye, and yet it is global in its reach. While some of America’s greatest cities have closed for business to control a worldwide contagion, enterprising business owners and workers in more recession-resilient cities have found new ways to repurpose and reuse their resources to make a living.
To find these cities, SmartAsset examined 264 of the country’s largest municipalities, using nine metrics across the three categories of employment, housing and social assistance.
The employment category factors in the current unemployment rate, the change in the unemployment rate during the Great Recession from 2007 to 2010 and the current labor force participation rate. The housing category factors in housing costs as a percentage of income, the change in home value during the Great Recession from 2007 to 2010 and the mortgage delinquency rate. The social assistance category factors in the percentage of the population relying on public assistance, the average annual amount of assistance per household and state rainy-day funds as a percentage of state expenditures.
SmartAsset created its final ranking by averaging each city’s score in the three categories. Cities with the highest average rankings, based on a score of 0 to 100, with 100 being the best, are the most recession-resistant.
Here, in ascending order, are SmartAsset’s top 10 most recession-resistant cities of 2020.
10. Sioux Falls, South Dakota
Although Sioux Falls earned a score of just 48.02 in social assistance, the city last week announced on its website that local government and private business had established a COVID-19 Relief Fund to prevent evictions and financial hardships in the event of unemployment. Sioux Falls scored an 84.01 in housing and a 96.99 in employment, for an overall rank of 76.34.
9. Raleigh, North Carolina
While the city earned a score of 73.04 in employment, it is part of the Raleigh-Durham research triangle -- a biopharma hotbed in the battle against the novel coronavirus, making it an engine for job creation. Raleigh scored a 70.86 in social assistance and a 90.33 in housing, for an overall rank of 78.08.
8. Cary, North Carolina
Despite a score of 50.22 in social assistance, several of Cary’s restaurants have combined philanthropy with business during the COVID-19 pandemic by reopening as grocery stores that offer free delivery to area seniors, according to local ABC-TV affiliate WTVD. Cary scored a 91.23 in employment and a 95.25 in housing, for an overall rank of 78.90.
7. Lubbock, Texas
Lubbock scored a 67.49 in housing, but renters and homeowners need not worry about affording their home’s utilities during a pandemic. Last week, the city announced on its website that it was suspending water and electric disconnections in response to COVID-19. Lubbock scored an 80.37 in employment and an 89.46 in social assistance, for an overall rank of 79.10.
6. Sunnyvale, California
Located in California’s Silicon Valley, Sunnyvale workers and residents are largely immune to the economic impact of COVID-19, according to a report published in San Jose's Mercury News. Sunnyvale scored a 67.50 in social assistance, a 76.18 in employment, and a 94.02 in housing, for an overall rank of 79.23.
5. Austin, Texas
Business and philanthropy go hand in hand in Austin, where local ABC-TV affiliate KVUE reports that nonprofit JUST has started an emergency fund to help low-income, mostly female, minority entrepreneurs hit hard by COVID-19. The city scored 72.33 in social assistance, 79.26 in housing and 86.26 in housing, for an overall rank of 79.28.
4. Denton, Texas
The Denton Record-Chronicle reported that enterprising residents Burt and Missy Finger kept their Dallas art gallery open and practiced social distancing during the pandemic by changing their business hours to appointment only. Denton scored 71.18 in housing, 78.40 in employment and 90.48 in social assistance, for an overall rank of 80.02.
3. Plano, Texas
Plano scored an 83.46 in social assistance, thanks to compassionate area residents like the thousands who joined COVID-19 North Texas Relief on Facebook, according to the city's Community Impact Newspaper. The city scored an 81.41 in employment and a 92.27 in housing, for an overall rank of 85.71.
2. Cedar Rapids, Iowa
Cedar Ridge Winery & Distillery in Cedar Rapids created a cottage industry during the pandemic by filling bulk orders nationwide of the hand sanitizers the company donates locally, according to local newspaper The Gazette. The city scored an 82.43 in social assistance, an 82.69 in housing and a 94.76 in employment, for an overall rank of 87.83.
1. Frisco, Texas
During the pandemic, Matt Hamilton, owner of Local Yocal, kept his McKinney restaurant’s workers employed boxing warehouse produce for bulk sale, and sold meals to go from a recommissioned food trailer, the McKinney Courier-Gazette reported. Frisco scored an 86.82 in social assistance, an 87.30 in employment and a 92.27 in housing, for an overall rank of 88.80.
