February 15, 2021 | By Dr. Matthew Kahn and Mac McComas — Over time, some cities decline, and other cities grow. Among those that grow, some grow much faster than others. Those cities, and their surrounding regions, that experience above average growth often present very attractive markets for real estate investors. Those investors who identify markets with the potential for above average growth, especially sustained above average growth, are often rewarded with above average investment returns.
In this report, we explore five factors that may have contributed to the city’s success: good governance, regional competition, a diversified economy, low cost of living and high wages, and the ability to attract young and educated people. We do not present these factors in a prioritized list or claim that they alone are the reason for the city’s success. Instead, we explore how they might have served as a draw for people and firms in recent decades.