Economic vitality goes to youthful metros; Phoenix #5

[Source: G. Scott Thomas, Business Journal Newspapers] — Youthful spirit and economic vitality go hand in hand. Communities with large concentrations of young adults are more likely to prosper, according to a new bizjournals study.  The correlation is driven home by the study’s comparison of metropolitan areas that skew young or old.  Group No. 1 consists of the 11 major markets where more than 25 percent of all residents are 18 to 34 years old.  Group No. 2 contains 14 metros where fewer than 22 percent are young adults. Here’s how they match up.

• The young markets have been experiencing population growth of 2.1 percent per year since 2000. That’s seven times the growth rate of 0.3 percent for the old markets.
• The annual rate of job growth is 1.9 percent in the young metros compared to 0.4 percent in their older counterparts.
• Personal income is climbing at a median pace of 3.4 percent per year in the young markets.  The corresponding figure is 2.8 percent on the old side.

It’s clear that having a high percentage of young adults can be an indicator of economic success.  It tells marketers where to concentrate their efforts, entrepreneurs where to start businesses, and college graduates where to look for work.  But which markets offer the best prospects for people in the 18-34 age range these days?  Bizjournals sought the answer by analyzing growth patterns, income levels, and other key statistics to rank the nation’s 67 largest metros as best places for young adults.  These are the five places currently offering the best job opportunities for young adults:

1. Raleigh: This is the only market to finish in the top 10 in three key categories: population growth, job growth, and the percentage of young adults with college degrees.  Raleigh is also blessed with a relatively low cost of living.
2. Austin: Twenty-nine percent of Austin’s residents are between the ages of 18 and 34.  That’s the heaviest concentration of young adults in any major metro.
3. Washington: The District of Columbia can be an expensive place to live, but paychecks for workers in their 20s and 30s are among the highest in the nation.
4. Las Vegas: The economy has slowed in Las Vegas in recent months, yet it remains the national leader in job growth since 2002, averaging 4.9 percent per year.
5. Phoenix: The unemployment rate for 18- to 34-year-olds in Phoenix is 5.4 percent.  That’s three full percentage points below the U.S. average for the same age group.