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'06 Boom towns. (cover story)

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Author: Kotkin, Joel

'06 Boom towns


Bellingham, Washington; St. George, Utah; McAllen, Texas… You may be surprised by the places that top our list of the hottest for entrepreneurs

CALL IT THE REVENGE OF THE BOONDOCKS. For several years now, the nation's entrepreneurial hotbeds have been migrating from the major urban centers to smaller cities on the periphery. But a funny thing happened on the way to Inc.'s 2006 Hot Cities list. Demographic trends have accelerated to the point that what once constituted the periphery is no longer, well, peripheral. Sure, longtime list-topping cities such as Phoenix, Daytona Beach, and Orlando again are posting strong job growth and continue to be great places to do business. But the nation's newest entrepreneurial hotbeds can be found even further afield--in cities like Bellingham, Washington; Port St. Lucie, Florida; and McAllen, Texas--places that have never registered as business centers. The rise of these small communities is the most important trend emerging from this year's survey of the nation's hottest places to do business. As always, our list (which was compiled by Michael A. Shires, professor of public policy at Pepperdine University) puts the focus on job growth, which we believe is the best measure of a region's economic vitality--especially as it applies to entrepreneurs. The Small Business Administration estimates that small companies generate as many as three-quarters of the nation's new jobs; as a result, a region showing strong job creation is likely to be a hotbed of entrepreneurial activity. What's more, strong job growth suggests that a region's economy is expanding. That means new demand and new opportunities.

To compile the rankings, Inc. measured current-year employment growth, as well as average annual job growth over the past three years and compared job growth in the first and second halves of the period comprising the past 10 years. The big difference this year is the number of communities surveyed. In years past, the Bureau of Labor Statistics, which generates the job growth data, surveyed 274 metropolitan statistical areas, or MSAs. This year, BLS surveyed 393--which has allowed us to paint a far more accurate picture of where the action really is. (For a detailed description of our methodology, go to inc.com/keyword/methodology.)

Red-hot Florida is the center of that action, contributing 19 cities to the list's top 100. Indeed, every one of the state's metro areas is experiencing significant population and job growth. The three star megaregions of the desert Southwest--Las Vegas (No. 9), Reno (No. 25), and Phoenix (No. 36)--boast many of the same advantages and are experiencing similar levels of growth. Now much of that growth is spilling over into even smaller areas, such as St. George, Utah (No. 2), Idaho Falls, Idaho (No. 10), and Bend, Oregon (No. 14). Says St. Louis-based demographer Wendell Cox: "This is the sprawl beyond the sprawl."

The nation's largest urban areas continue to lag. New York City comes in at No. 292, Boston at No. 343, and Philadelphia at No. 392. This is in stark contrast with surrounding areas, such as the suburbs of Philadelphia and Washington, D.C. The industrial belt also is lagging; it accounts for five of the bottom 10 MSAs, including last place Muncie, Indiana.

Admittedly, it's a lot easier for small, emerging regions to post big growth rates than it is for big, mature ones. Still, it's hard to deny the advantages of the boomtowns described in the pages that follow. We've profiled the top 20 cities in three categories--small (an employment base of less than 150,000); medium (150,000 to 450,000), and large (more than 450,000). We've also included some U.S. Census figures ranking the nation's cities on measures like median income, health, and education.

Turn here for the rankings

Hottest Small Cities EMPLOYMENT BASE OF LESS THAN 150,000

1 YUMA, ARIZONA

Once a small farming community, this border town is one of the nation's fastest-growing areas, with a burgeoning Latino population and a steady stream of Californians in search of a lower cost of living. Surging trade with Mexico has sparked strong growth in services and transportation.

Overall Rank 1 | 1-Year Job Growth 8.3% | 5-Year Job Growth 32.0% | Index Score 100.0

2 ST. GEORGE, UTAH

Located in the state's scenic southwest corner, St. George is a magnet for both retirees and young families. That's sparked businesses in a range of industries--from IT and business services to manufacturing and retail and wholesale trade.

Overall Rank 2 | 1-Year Job Growth 7.9% | 5-Year Job Growth 38.2% | Index Score 98.8

3 FORT WALTON BEACH-CRESTVIEW, FLORIDA

Growth in this panhandle community is driven by low taxes and good weather. It's also home to an estimated 350 technology firms, which do brisk business with contractors at Hurlburt Field and Eglin Air Force Base.

Overall Rank 4 | 11-Year Job Growth 4.4% | 5-Year Job Growth 21.1% | Index Score 96.4

4 COEUR D'ALENE, IDAHO

With its picturesque lakes and stunning vistas, Coeur d'Alene has long been a top vacation spot. Now it's drawing refugees from pricey, high-regulation places like California (see "The Buck Stopped Here," page 86), spurring growth in services and manufacturing.

Overall Rank 5 | 1-Year Job Growth 7.9% | 5-Year Job Growth 23.6% | Index Score 96.3

5 BELLINGHAM, WASHINGTON

With the San Juan Islands to the west and Mount Baker looming to the east, Bellingham attracts urban refugees, who have launched hundreds of small service firms, manufacturers, and consultancies.

Overall Rank 6 | 1-Year Job Growth 6.0% | 5-Year Job Growth 18.7% | Index Score 95.7

6 PORT ST. LUCIE-FORT PIERCE, FLORIDA

Tourism remains a major force on Florida's Atlantic coast but recant action is in the sciences, spurred by facilities like a U.S. Department of Agriculture research lab and the Smithsonian's marine research station.

Overall Rank 7 | 1-Year Job Growth 4.7% | 5-Year Job Growth 22.6% | Index Score 94.8

7 NAPLES-MARCO ISLAND, FLORIDA

Collier County's population has jumped more than 55,000, to 307,000, since 2000, making the region the nation's leading destination for young, single, and educated people in terms of net migration. That's sparked major growth in industries like health care and financial services, drawing newcomers like M&I Bank, which recently opened a local facility.

Overall Rank 8 | 1-Year Job Growth 4.8% | 5-Year Job Growth 26.1% | Index Score 94.4

8 IDAHO FALLS, IDAHO

With a revitalized downtown district, Idaho Falls is big on small-town charm. But it also boasts a diverse band of high-tech companies primarily revolving around the Department of Energy's Idaho National Laboratory.

Overall Rank 10 | 1-Year Job Growth 5.0% | 5-Year Job Growth 19.7% | Index score 94.2

9 CASPER, WYOMING

A bona fide energy boomtown, Casper has benefited from an influx of construction and manufacturing companies serving the state's oil and natural gas industries. Labor is in such short supply that the city is recruiting laid-off Detroit autoworkers.

Overall Rank 11 | 1-Year Job Growth 3.4% | 5-Year Job Growth 18.6% | Index Score 94.0

10 BREMERTON-SILVERDALE, WASHINGTON

For years, Bremerton's waterfront was nothing more than a parking lot for the city's top employer, the Puget Sound Naval Shipyard. Boarded-up buildings have been replaced with retail stores thanks to a harborside development program that includes a $47 million conference center, hotel, and condo complexes.

Overall Rank 13 | 1-Year Job Growth 3.6% | 5-Year Job Growth 17.0% | Index Score 93.1

11 PANAMA CITY-LYNN HAVEN, FLORIDA

Tourists pump nearly $1.5 billion into the economy, providing more than 14,000 jobs. Uncle Sam also provides a boost, with an Air Force base and Naval Support Center that farm out business to local contractors.

Overall Rank 14 | 1-Year Job Growth 50% | 5-Year Job Growth 15.5% | Index Score 92.2

12 MORGANTOWN, WEST VIRGINIA

Home to West Virginia University, Morgantown is a magnet for the health care industry. Major employers include two large hospitals, several government labs, and companies such as generic drug maker Mylan.

Overall Rank 15 | 1-Year Jab Growth 3.3% | 5-Year Job Growth 14.7% | Index Score 92.1

13 PRESCOTT, ARIZONA

Settled during the gold rush days of the 1800s, Prescott is experiencing a boom among seniors. They're drawn to the city's numerous retirement communities, mild climate, and historic downtown area.

Overall Rank 16, | 1-Year Job Growth 4.5% | 5-Year Job Growth 19.6% | Index Score 92.1

14 BEND, OREGON

Bend's population has more than tripled, to about 70,000, over the past 15 years, with refugees from Portland and California drawn by a scenic location and low cost of living. The influx has transformed a timber-based economy, bringing in manufacturing, aerospace, and semiconductor firms.

Overall Rank 17 | 1-Year Job Growth 4.7% | 5-Year Job Growth 18.3% | Index Score 90.6

15 EL CENTRO, CALIFORNIA

Located in the state's southeast corner, El Centro has been riding the same global trade wave as other U.S. border towns. It also owes its growth to the Department of Homeland Security, which has boosted its hiring of security and customs personnel to police the busy border with Mexicali.

Overall Rank 18 | 1-Year Job Growth 7.3% | 5-Year Job Growth 14.5% | Index Score 90.1

16 LOGAN, UTAH

Logan's longtime meatpacking plants and dairy processors have been joined by a host of biotech and communications firms drawn by the brainpower of Utah State University and a shiny new fiber optic infrastructure.

Overall Rank 21 | 1-Year Job Growth 3.6% | 5-Year Job Growth 17.4% | Index 87.8

17 PUNTA GORDA, FLORIDA

Local firms have created 2,200 new jobs over the past two years, many of them in health care, IT, and specialty contracting tied to rebuilding after last year's hurricanes. Relatively low home prices attract newcomers.

Overall Rank 22 | 1-Year Job Growth 4/2% | 5-Year Job Growth 14.0% | Index Score 87.5

18 GREELEY, COLORADO

Historically an agricultural powerhouse, Greeley, located about 60 miles northeast of Denver, has made a new-economy transition, with a top-notch acute-care facility in the area, two ethanol plants on the way, and a strong manufacturing presence. The city has seen 14 percent growth in service jobs since 2003.

Overall Rank 23 | 1-Year Job Growth 3.8% | 5-Year Job Growth 13.6% | Index Score 85.2

19 WINCHESTER, VIRGINIA

Located 80 miles outside Washington, D.C., and home to Shenandoah University, Winchester is absorbing people priced out of northern Virginia communities like Fairfax. Growth has been particularly robust among federal government agencies, which boosted employment nearly 20 percent in 2005.

Overall Rank 26 | 1-Year Job Growth 4.8% | 5-Year Job Growth 12.0% | Index Score 84.2

20 LAREDO, TEXAS

A manufacturing and trading center, this Texas border town boasts a growing banking industry and Texas A&M University. With the assembly plants of Nuevo Laredo due south, trade is driving the population of "los dos Laredos" toward one million.

Overall Rank 29 | 1-Year Job Growth 2.8% | 5-Year Job Growth 15.3% | Index Score 83.5

Hottest Midsize Cities EMPLOYMENT BASE OF 150,000-450,000

1 CAPE CORAL-FORT MYERS, FLORIDA

Hurricanes haven't dampened population growth in this Gulf Coast area--it's up 16 percent, to more than 500,000, since 2000. Among the key job generators: tourism, construction, and new service firms, many founded by refugees from cooler climes.

Overall Rank 3 | 1-Year Job Growth 4.8% | 5-Year Job Growth 25.2% | Index Score 97.1

2 McALLEN-EDINBURG, TEXAS

Rising trade with Mexico, combined with population growth--up 15.6 percent between 2000 and 2004--have pushed employment up more than 19 percent since 2001. Services, wholesale and retail trade, and education have led the way.

Overall Rank 12 | 1-Year Job Growth 4.7% | 5-Year Job Growth 22.3% | Index Score 93.4

3 FAYETTEVILLE, ARKANSAS

Northwest Arkansas doesn't get much ink, but jobs are up 14 percent since 2001, with growth in services, education, and transportation. Two key drivers: Wal-Mart's headquarters in nearby Bentonville and the University of Arkansas.

Overall Rank 19 | 1-Year Growth 33% | 5-Year Job Growth 19.9% | Index Score 88.4

4 SARASOTA-BRADENTON, FLORIDA

Population is expanding and the professional services sector is burgeoning--up nearly 30 percent since 2002. One key reason has been the migration of skilled workers and managers from elsewhere in the country.

Overall Rank 20 | 1-Year Job Growth 4.5% | 5-Year Job Growth 15.1% | Index Score 88.2

5 RENO-SPARKS, NEVADA

The Reno area continues to suck up more of the Bay Area's companies and people. That's sparked new activity in services, manufacturing, and construction--where employment is up 45 percent since 2002.

Overall Rank 25 | -Year Job Growth 4.2% | 5-Year Job Growth 11.9% | Index Score 84.4

6 PALM BAY-MELBOURNE, FLORIDA

Palm Bay issued more than 3,200 single-family building permits in 2005. The influx of new residents has sparked booms in construction and in business and professional services. Thanks to NASA's Cape Canaveral, the area attracts aerospace and defense firms.

Overall Rank 27 | 1-Year Job Growth 3.1% | 5-Year Job Growth 11.3% | Index Score 84.1

7 DAYTONA BEACH-ORMOND BEACH, FLORIDA

A half-billion dollars in capital investments has flowed into Volusia County over the past three years. Manufacturers are adding jobs, particularly auto-parts makers, medical-device firms, and boat builders. Service jobs also are plentiful.

Overall Rank 34 | 1-Year Job Growth 3.0% | 5-Year Job Growth 13.4% | Index Score 83.0

8 LAKELAND, FLORIDA

With 500 lakes, Lakeland bills itself as the water-skiing capital of the world. It's also a major hub for back-office operations of financial services and insurance firms like Geico and State Farm. Mid-career adults aged 35 to 54, attracted by low housing costs and good schools, have driven recent population growth--a positive sign for companies looking for skilled employees.

Overall Rank 38 | 1-Year Job Growth 2.6% | 5-Year Job Growth 10.3% | Index Score 80.0

9 PROVO-OREM, UTAH

High-tech firms like Novell are finding a home in Provo, which is completing a $40 million fiber-optic network. Low crime and outdoor activities make it a magnet for young professionals. Brigham Young University adds academic heft, and for celebrity sightings, Sundance Film Festival is just up the road.

Overall Rank 40 | 1-Year Job Growth 3.8% | 5-Year Job Growth 8.6% | Index Score 79.0

10 BAKERSFIELD, CALIFORNIA

The fourth-largest agricultural region in California, Bakersfield is home to plenty of food packagers and processors. But it also boasts two major defense research facilities, including Edwards Air Force Base, which has led to an emerging cluster of aerospace companies.

Overall Rank 41 | 1-Year Job Growth 3.1% | 5-Year Job Growth 12.4% | Index Score 78.9

11 BOISE, IDAHO

Cheap labor, energy, and office space are key incentives, as is the state's pro-business climate. Computer makers, biotech firms, health care providers, and software developers are among the region's new employers.

Overall Rank 48 | 1-Year Job Growth 3.6% | 5-Year Job Growth 8.2% | Index Score 76.3

12 CHARLESTON, SOUTH CAROLINA

Defense contractors and tech start-ups that support local military-research centers are surging. The Port of Charleston remains a draw for manufacturers, especially auto-parts suppliers and chemical processors.

Overall Rank 54 | 1 -Year Job Growth 2.5% | 5-Year Job Growth 9.9%| Index Score 75.0

13 TUCSON

Tucson boasts 300 sunny days a year, and the city's high-tech scene is also an attraction. Aerospace and IT firms are top employers, and several major medical facilities support cutting-edge research in the biosciences.

Overall Rank 60 | 1-Year Job Growth 3.9% | 5-Year Job Growth 6.8% | Index Score 74.0

14 ANCHORAGE, ALASKA

The service sector is on a roll, with strong growth in health care, professional services, tourism, and trade. High energy prices have sparked demand for engineers and consultants for oil and gas exploration.

Overall Rank 6.3 | 1-Year Job Growth 2.1% | 5-Year Job Growth 11.3% | Index Score 72.3

15 PENSACOLA-FERRY PASS-BRENT, FLORIDA

A major hurricane hit Pensacola in 2004, but the area rebounded thanks to investments in the rebuilding of homes, office buildings, and highways. An influx of call centers has come to the region, and major health care facilities are expanding.

Overall Rank 71 | 1-Year Job Growth 2.0% | 5-Year Job Growth 7.7% | Index Score 69.5

16 CHARLES-PRINCE GEORGE'S, MARYLAND

Just outside Washington, D.C., the counties of southern Maryland rely heavily on the federal government, defense contractors, and tech companies. High concentrations of engineers and scientists make the area a hotbed for medical and defense research, which drives entrepreneurial activity.

Overall Rank 75 | 1-Year Job Growth 3.3% | 5-Year Job Growth 6/7% | Index Score 68.7

17 TACOMA, WASHINGTON

Last year, the Port of Tacoma opened three new terminals to handle more international container business, which grew 20 percent. That's creating jobs at the docks, as well as in warehouses and distribution centers around the region. Reasonably priced homes attract transplants from Seattle.

Overall Rank 77 | 1-Year Job Growth 2.5% | 5-Year Job Growth 6.9% | Index Score 67.5

18 OGDEN-CLEARFIELD, UTAH

An outdoors paradise, Ogden is now working to attract the companies that make equipment for all the fun and games. So far, a ski-pole maker and an outdoor apparel company have moved in and bicycle manufacturer Scott USA recently decided to build a production and distribution center there.

Overall Rank 78 | 1-Year Job Growth 2.1% | 5-Year Job Growth 8.5% | Index Score 67.4

19 HUNTSVILLE, ALABAMA

A number of high-tech companies, such as Dynetics, are building their headquarters in this region, which boasts the second largest science and technology research park in the nation. Manufacturing got a lift when a number of auto suppliers added jobs, and local military contractors also have been thriving

Overall Rank 95 |1-Year Job Growth 1.9% | 5-Year Job Growth 72% | Index Score 65.0

20 PORTLAND, MAINE

Portland recently opened a $25 million road that connects its busy waterfront with Interstate 295, the area's major highway, giving easier access to truckers picking up cargo at the docks. Health care and financial services also are bright spots.

Overall Rank 97 | 1-Year Job Growth 1.7% | 5-Year Job Growth 8.0% | Index Score 64.5

Hottest Large Cities EMPLOYMENT BASE OF 450,000 OR MORE

1 LAS VEGAS

The Vegas boom now extends well into the suburbs. The number of entertainment and tourism jobs has surged 14.2 percent since 2002, and growth is even more impressive in financial and professional services. Construction is up almost 50 percent.

Overall Rank 9 | 1-Year Job Growth 7.5% | 5-Year Job Growth 25.3% | Index Score 94.3

2 FORT LAUDERDALE, FLORIDA

A number of high-tech businesses, such as Internet solutions provider Hostopia, have recently relocated to the warm, low-tax surroundings of Broward County. Technology, biomed, and health services top the list of growth industries.

Overall Rank 24 | 1-Year Job Growth 4.2% | 5-Year Job Growth 12.1% | Index Score 84.5

3 ORLANDO

Orlando is outgrowing the Mouse. The city's technology industry now boasts collective annual revenue of some $10 billion. Other high-end gains are in professional business and financial services, which have enjoyed double--digit growth since 2002.

Overland Rank 28 | 1-Year Job Growth 4.5% | 5-Year Job Growth 11.7% | Index Score 84.0

4 WEST PALM BEACH-BOCA RATON, FLORIDA

Business and professional services, up 20 percent since 2002, are driving the region's economy. The area is also a life-sciences hub, home to drug and medical instrument makers, such as Nabi Biopharmaceuticals.

Overall Rank 31 1-Year Job Growth 3.4% | 5-Year Job Growth 13.6% | Index Score 83.5

5 SAN BERNARDINO-RIVERSIDE, CALIFORNIA

Housing prices in the sprawling inland suburbs of southern California may be rising, but they're still half those along the coast. As a result, people have continued to flock to the area, where warehouses and factories are being replaced by white-collar service firms.

Overall Rank 35 | 1-Year Job Growth 1.9% | 5-Year Job Growth 18.7% | Index Score 82.4

6 PHOENIX

The Valley of the Sun is posting robust growth in financial services, with banks, customer-service centers, insurers, and brokerage firms popping up across the region.

Overall Rank 36 | 1-Year Job Growth 4.4% | 5-Year Job Growth 10.8% | Index Score 81.7

7 NORTHERN VIRGINIA

Entrepreneurs in Fairfax County netted $297 million in venture capital last year, up 52 percent from 2004. IT and business services are hot, as are biotech, engineering, and telecommunications. Excellent public schools and cultural amenities make it an appealing place to live--if you can afford the real estate.

Overall Rank 42 | 1-Year Job Growth 3.1% | 5-Year Job Growth 9.9% | Index Score 78.4

8 WASHINGTON, D.C.-ARLINGTON-ALEXANDRIA

No surprise that an expanding federal government is the main economic force here, providing jobs at its many agencies and at the private companies that do business with them. Professional services are on the rise, and the retail sector is flourishing.

Overall Rank 52 | 1-Year Job Growth 3.2% | 5-Year Job Growth 10.4% | Index Score 75.9

9 TAMPA-ST. PETERSBURG, FLORIDA

Affordable business and living costs, terrific weather, and plentiful jobs keep attracting people to Tampa Bay. Wholesale trade, transportation, and warehousing are strong, thanks to the Port of Tampa, the state's largest port, which handles 50 million tons of cargo a year. More cruise ships are docking as well, and professional and technical services are expanding.

Overall Rank 64 | 1-Year Job Growth 2.6% | 5-Year Job Growth 8.0% | Index Score 72.1

10 CAMDEN-BURLINGTON COUNTIES, NEW JERSEY

The Philadelphia suburbs are thriving, with strong growth in banking, insurance, and pharmaceuticals. Access to the Northeast's major cities also is a plus.

Overall Rank 65 | 1-Year Job Growth 2.6% | 5-Year Job Growth 9.1% | Index Score 71.7

11 JACKSONVILLE, FLORIDA

Banks, medical-device makers, call centers, insurance firms, manufacturers, and software developers have all relocated to the region in recent years. Good infrastructure and affordable costs appeal to newcomers.

Overall Rank 81 | 1-Year Job Growth 2/6% | 5-Year Job Growth 5.5% | Index Score 66.9

12 CHARLOTTE, NORTH CAROLINA

The Charlotte area is home to Bank of America and Wachovia, whose presence has spawned a financial services sector that includes customer-service and data-processing centers. Medical equipment and pharmaceutical makers appreciate a highly skilled work force.

Overall Rank 91 | 1-Year Job Growth 3.3% | 5-Year Job Growth 4.3%| Index Score 65.8

13 RALEIGH-CARY, NORTH CAROLINA

The Research Triangle area thrives on innovation in life sciences, information technology, and software development. Raleigh is also the state capital and the government accounts for two of every 10 jobs.

Overall Rank 92 | 1-Year Job Growth 2.8% | 5-Year Job Growth 5.0% | Index Score 65.6

14 RICHMOND, VIRGINIA

The health care, leisure, and hospitality sectors all recorded high growth last year. Construction projects were boosted by the revitalization of the city's downtown district, which includes condos, retail shops, and office space. The city recently opened a business-development office in Guangzhou, China.

Overall Rank 96 | 1-Year Job Growth 2.9% | 5-Year Job Growth 4.9% | Index Score 64.9

15 SALT LAKE CITY

From industrial banks to medical-device makers, back-office call centers to pharmaceutical labs, Salt Lake City is firing on all cylinders. Real-estate costs have edged up, but the city hopes tax breaks and other incentives will lure new companies.

Overall Rank 98 |1-Year Job Growth 3.3% | 5-Year Job Growth 3.8% | Index Score 64.4

16 PUTNAM-ROCKLAND-WESTCHESTER COUNTIES, NEW YORK

Proximity to New York City and the scenic Hudson Valley, and a high-tech infrastructure make these suburban counties an obvious choice for small firms and blue-chip corporations alike. Clusters of biotech and IT outfits have formed in the region.

Overall Rank 121 |1-Year Job Growth 2/3% | 5-Year Job Growth 5.1% | Index Score 60.5

17 SANTA ANA-ANAHEIM-IRVINE, CALIFORNIA

Orange County got whacked by the tech downturn of 2001, shedding thousands of jobs. Today the area is on the rebound, led by explosive growth in the services sector. Financial services added 4,100 jobs last year alone, and the health care industry is scooping up as much medical personnel as it can find.

Overall Rank 124 | 1-Year Job Growth 1.7% | 5-Year Job Growth 6.5% | Index Score 60.1

18 MIAMI-MIAMI BEACH

More companies are taking advantage of the region's proximity to markets in the Americas and the Caribbean. The Port of Miami creates jobs in wholesale trade, and professional services and construction are seeing robust growth. Tourists inject $13.5 billion a year into the local economy.

Overall Rank 126 | 1-Year Job Growth 2.2% |5-Year Job Growth 3.1% | Index Score 59.2

19 SACRAMENTO

Construction is booming as the population expands beyond the urban center of Sacramento and into the foothills of the Sierra Nevada. Population growth is also ratcheting up demand for services, especially health care and education.

Overall Rank 132 | 1-Year Job Growth 1.5% | 5-Year Job Growth 8.5% | Index Score 58.2

20 SAN DIEGO

Construction crews have been busy with new hotels, condos, and homes. Action in biotech and telecom (Qualcomm is based here) has sparked a boom in services, which has added some 10,000 jobs since 2000.

Overall Rank 133 | 1-Year Job Growth 1.4% | 5-Year Job Growth 7.2% | Index Score 57.9

INCOME

HIGHEST MEDIAN
HOUSEHOLD INCOME

1. Sugar Land, TX
$84,842

2. Missouri City, TX
$71,902

3. San Jose, CA
$71,765

4. Coral Springs, FL
$65,062

5. Anchorage, AK
$61,595

LOWEST MEDIAN
HOUSEHOLD INCOME

1. Miami, FL
$24,031

2. Newark, NJ
$26,309

3. Cleveland, OH
$27,688

4. Detroit, MI
$27,871

5. Buffalo, NY
$28,544

Data: U.S. Census

AGE

OLDEST
MEDIAN AGE

1. Pompano Beach, FL
45.3

2. Honolulu, HI
41.6

3. Deerfield Beach, FL
41.1

4. Fort Lauderdale, FL
40.4

5. St. Petersburg, FL
39.7

YOUNGEST
MEDIAN AGE

1. Fresno, CA
28.1

2. Santa Ana, CA
28.2

3. Waukegan, IL
28.4

4. Fort Worth, TX
29.5

5. Newark, NY
29.6

Data: U.S. Census

EDUCATION

% OF ADULTS WITH
ADVANCED DEGREE

1. Washington, D.C.
26%

2. Seattle, WA
20.9%

3. San Francisco, CA
19.5%

4. Sugar Land, TX
19.2%

5. Atlanta, GA
17.1%

% Of ADULTS
W/O HIGH SCHOOL
DIPLOMA

1. Santa Ana, CA
48.6%

2. Miami, FL
37.1%

3. Waukegan, IL
33.8%

4. Newark, NY
33.8%

5. Los Angeles, CA
29.9%

Data: U.S. Census

HEALTH

HIGHEST PERCENTAGE
OF OBESE

1. Huntington-Ashland,
WV-KY
32.5%

2. Detroit, MI
31%

3. Jackson, MS
30.1%

4. Houma-Thibodaux,
LA
30%

5. San Antonio, TX
30%

LOWEST PERCENTAGE
OF OBESE

1. Santa Fe, NM
14.5%

2. Cambridge, MA
15.1%

3. Denver, CO
15.3%

4. San Francisco, CA
16.6%

5. Burlington, VT
17%

Data: Centers for
Disease Control

The state of job growth

What would the U.S. map look like if it was redrawn based on the pace of job creation? We did just that, taking each state's five-year growth rate and adding or subtracting from its size accordingly. The results? California is a narrow sliver clinging to Nevada; Michigan and Massachusetts barely exist.

More than 16%

NV        19.3%
HI         8.6%

8% to 15.9%

MT         8.2%
ID         8.8%
WY         9.5%
AZ        10.5%
NM           8%
FL         9.6%

4% to 7.9%

UT         6.4%
ND         4.2%

2% to 3.9%

WA         2.1%
OR         2.5%
VT         3.3%
NH         3.1%
ME         2.3%
RI         3.9%
DE         2.6%
VA         3.2%

-1.9% to 1.9%

CA         1.6%
CO         0.1%
KS        -0.2%
OK         0.2%
TX         1.6%
IA         0.4%
MO        -1.0%
IN        -1.3%
KY        -0.1%
TN        -0.3%
NY        -1.3%
PA         0.1%
WV         0.9%
AL        -0.1%
GA        -0.8%
SC        -0.9%
MN         1.1%
WI        -0.3%
IL        -3.1%
CT        -1.7%
NJ         1.3%
NC        -1.4%
AR         1.2%

-3.9 to -2%

IL        -3.1%
OH        -3.5%
MA        -3.8%
MS        -3.1%

-7.9 to -4%

MI        -7.1%
Legend for Chart:

A - 2006 Rank
B - City, State
C - Overall Rank
D - 1-Year Job Growth
E - 5-Year Job Growth
F - Index Score

A              B                                C           D
                                                E           F

21    Olympia, WA                                30        4.0%
                                               13.0%      83.5

22    Madera, CA                                 32        2.4%
                                               22.3%      83.4

23    Dover, DE                                  33        2.3%
                                               13.7%      83.2

24    Ocala, FL                                  37        2.9%
                                               12.0%      80.9

25    Farmington, NM                             39        2.5%
                                               11.1%      79.6

26    Great Falls, MT                            43        3.5%
                                                8.9%      77.6

27    Mount Vernon-Anacortes, WA                 44        4.7%
                                                8.2%      77.4

28    Auburn-Opelika, AL                         45        0.8%
                                               13.2%      77.1

29    Billings, MT                               46        2.0%
                                               13.5%      76.8

30    Hot Springs, AR                            47        4.1%
                                                7.6%      76.4

31    Las Cruces, NM                             49        3.3%
                                               13.5%      76.3

32    Harrisonburg, VA                           50        2.0%
                                               11.0%      76.2

33    Bismarck, ND                               51        3.0%
                                               10.3%      76.1

34    Tuscaloosa, AL                             53        4.4%
                                                6.3%      75.2

35    Yuba City, CA                              55        5.4%
                                                6.4%      74.8

36    Flagstaff, AZ                              56        4.1%
                                                6.0%      74.7

37    Wenatchee, WA                              57        3.9%
                                                6.4%      74.6

38    Hanford-Corcoran, CA                       58        3.3%
                                               11.5%      74.6

39    Fairbanks, AK                              59        1.8%
                                               10.7%      74.2

40    Johnson City, TN                           61        2.0%
                                                8.2%      73.5

41    Medford, OR                                62        2.5%
                                                9.1%      73.0

42    Pocatello, ID                              66        3.7%
                                                6.5%      71.1

43    Myrtle Beach, SC                           67        1.3%
                                               11.2%      70.7

44    Portsmouth, NH-ME                          68        2.5%
                                               10.8%      70.5

45    Hinesville-Fort Stewart, GA                69        6.0%
                                                9.6%      70.1

46    Gainesville, FL                            70        2.8%
                                                7.3%      70.1

47    Missoula, MT                               72        2.0%
                                               11.5%      69.0

48    Merced, CA                                 73        2.7%
                                               11.3%      68.7

49    Savannah, GA                               74        1.6%
                                                7.7%      68.7

50    Cheyenne, WY                               76        2.1%
                                                9.7%      68.2

51    Kennewick-Richland-Pasco, WA               79        4.4%
                                               18.3%      67.3

52    Grand Junction, CO                         80        1.3%
                                               10.4%      67.0

53    Sioux Falls, SD                            82        2.8%
                                                6.8%      66.9

54    Carson City, NV                            83        2.5%
                                                5.0%      66.8

55    Salisbury, MD                              84        1.6%
                                                9.3%      66.7

56    Warner Robins, GA                          85        1.4%
                                               10.8%      66.7

57    Wilmington, NC                             86        2.1%
                                                7.2%      66.7

58    Lawrence, KS                               87        1.9%
                                                9.6%      66.5

59    Clarksville, TN-KY                         88        1.6%
                                                6.3%      66.4

60    Santa Fe, NM                               89        2.6%
                                                7.5%      66.1

Inc.com For an interactive map of the list's hottest cities,
visit inc.com/keyword/citymap.

Legend for Chart:

A - 2006 Rank
B - City, State
C - Overall Rank
D - 1-Year Job Growth
E - 5-Year Job Growth
F - Index Score

A              B                                C           D
                                                E           F

21    Modesto, CA                               104        1.5%
                                                9.4%      63.2

22    Stockton, CA                              106        1.6%
                                                8.4%      62.8

23    Knoxville, TN                             107        1.5%
                                                7.9%      62.8

24    Trenton-Ewing, NJ                         111        1.3%
                                                8.7%      62.3

25    Springfield, MO                           113        2.0%
                                                7.2%      61.6

26    Honolulu, HI                              120        2.8%
                                                6.9%      61.0

27    Madison, WI                               122        1.5%
                                                6.7%      60.3

28    Des Moines, IA                            129        1.6%
                                                4.9%      58.4

29    Albuquerque, NM                           130        1.7%
                                                5.3%      58.4

30    Spokane, WA                               141        2.6%
                                                4.0%      56.5

31    Winston-Salem, NC                         142        2.9%
                                                1.4%      56.2

32    El Paso, TX                               145        2.7%
                                                2.5%      55.9

33    Fresno, CA                                150        1.2%
                                                6.7%      55.4

34    Santa Barbara-Santa Maria, CA             154        1.7%
                                                4.1%      54.7

35    Montgomery, AL                            155        2.5%
                                                2.7%      54.7

36    Poughkeepsie, NY                          158        1.2%
                                                6.5%      54.5

37    Boulder, CO                               162        3.1%
                                               -1.6%      52.6

38    Tallahassee, FL                           172        1.6%
                                                2.8%      51.3

39    Allentown-Bethlehem-Easton, PA-NJ         178        1.7%
                                                2.8%      50.1

40    York-Hanover, PA                          180        1.5%
                                                1.4%      49.8

41    Wilmington, DE                            182        2.0%
                                                1.2%      49.4

42    Asheville, NC                             186        1.4%
                                                4.6%      48.4

43    Colorado Springs, CO                      187        1.8%
                                                0.6%      48.3

44    Jackson, MS                               188        0.3%
                                                5.1%      47.8

45    Lake County-Kenosha County, IL-WI         189        1.3%
                                                2.9%      47.8

46    Roanoke, VA                               192        2.5%
                                               -1.3%      47.0

47    Reading, PA                               196        2.0%
                                               -1.4%      46.4

48    Lincoln, NE                               197        1.4%
                                                3.3%      45.9

49    Mobile, AL                                203        3.1%
                                               -3.2%      44.5

50    Columbia, SC                              211        0.6%
                                                1.6%      43.2

51    Durham, NC                                219        0.5%
                                                1.5%      42.5

52    Oxnard-Thousand Oaks-Ventura, CA          221        0.7%
                                                3.7%      42.3

53    Lancaster, PA                             223        0.6%
                                                2.6%      42.2

54    Chattanooga, TN-GA                        224        1.6%
                                                0.7%      42.0

55    Augusta-Richmond County, GA-SC            227        0.8%
                                                2.0%      41.4

56    Kansas City, KS                           228        0.6%
                                                1.6%      41.4

57    Framingham, MA                            233        1.0%
                                               -1.1%      40.9

58    Shreveport-Bossier City, LA               236        0.8%
                                                0.4%      40.7

59    Harrisburg-Carlisle, PA                   237        0.7%
                                                1.5%      40.5

60    Greensboro-High Point, NC                 242        1.0%
                                               -1.8%      39.2

Inc.com For audio interviews with contributing editor Joel
Kotkin and local entrepreneurs, visit inc.com/keyword/podcasts.

Legend for Chart:

A - 2006 Rank
B - City, State
C - Overall Rank
D - 1-Year Job Growth
E - 5-Year Job Growth
F - Index Score

A              B                                C           D
                                                E           F

21    Nashville, TN                             149        1.5%
                                                4.1%      55.5

22    Virginia Beach-Newport News, VA-NC        158        1.1%
                                                5.4%      53.7

23    Oklahoma City, OK                         164        1.8%
                                                2.1%      52.5

24    Portland-Vancouver, OR-WA                 169        2.3%
                                               -0.2%      51.9

25    San Antonio, TX                           171        1.5%
                                                3.5%      51.5

26    Austin-Round Rock, TX                     173        2.0%
                                                0.5%      51.3

27    Bethesda-Frederick-Gaithersburg, MD       177        1.8%
                                                3.7%      50.2

28    Seattle-Bellevue-Everett, WA              179        2.8%
                                               -1.9%      49.8

29    Edison, NJ                                181        1.0%
                                                5.6%      49.4

30    Albany-Schenectady-Troy, NY               184        1.5%
                                                3.1%      48.9

31    Houston-Baytown-Sugar Land, TX            193        1.4%
                                                2.6%      47.0

32    Indianapolis, IN                          201        0.4%
                                                3.6%      45.1

33    Nassau-Suffolk, NY                        207        0.9%
                                                2.3%      43.4

34    Omaha-Council Bluffs, NE-IA               212        1.7%
                                                1.3%      43.1

35    Fort Worth-Arlington, TX                  226        1.2%
                                                0.1%      41.5

36    Minneapolis-St. Paul, MN                  230        1.3%
                                                0.5%      41.4

37    Denver-Aurora, CO                         231        1.7%
                                               -2.3%      41.3

38    Providence, RI                            240        0.8%
                                                1.5%      39.4

39    Memphis, TN                               241        1.3%
                                               -0.3%      39.4

40    Atlanta, GA                               248        0.7%
                                               -0.2%      38.7

41    Oakland-Fremont-Hayward, CA               251        1.6%
                                               -1.3%      38.5

42    Cincinnati, OH                            254        0.5%
                                                1.3%      38.2

43    Dallas-Piano-Irving, TX                   258        0.9%
                                               -2.5%      37.6

44    Kansas City, MO                           259        1.1%
                                                1.4%      37.5

45    Columbus, OH                              266        0.6%
                                                0.4%      36.4

46    Los Angeles-Long Beach, CA                279        1.0%
                                               -1.3%      35.5

47    Louisville, KY                            282        1.2%
                                               -2.6%      35.1

48    St. Louis, MO                             288        0.8%
                                               -0.6%      34.2

49    New York City, NY                         292        1.2%
                                               -3.9%      33.8

50    Birmingham-Hoover, AL                     295        0.3%
                                               -0.9%      33.6

51    Hartford, CT                              298        0.5%
                                               -2.1%      32.9

52    Milwaukee, WI                             303        0.8%
                                               -3.3%      32.6

53    Pittsburgh, PA                            326        0.2%
                                               -1.2%      30.1

54    Chicago, IL                               328        0.8%
                                               -3.2%      30.0

55    Buffalo-Niagara Falls, NY                 330        0.3%
                                               -2.1%      29.8

56    Bergen-Hudson-Passaic, NJ                 337        0.2%
                                               -1.7%      28.7

57    Boston-Cambridge, MA                      343        0.9%
                                               -5.7%      28.1

58    Newark, NJ                                348       -0.5%
                                                0.2%      27.2

59    Detroit-Livonia-Dearborn, MI              351       -1.2%
                                               -9.4%      27.0

60    San Francisco, CA                         358        1.1%
                                              -13.2%      25.3

Inc.com For a complete list of all 393 metro areas, visit
inc.com/keyword/citylist.

~~~~~~~~

By Joel Kotkin

Rankings by Michael A. Shires



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