Five Utah cities have received recognition as top economic performers in the 2021 Milken Institute Best-Performing Cities Index, with Provo-Orem being named No. 1 in the large-city category. Salt Lake City and Ogden-Clearfield also appeared in the Top 10 at No. 4 and No. 9, respectively. Logan at No. 2 and St. George at No. 4 made the list of best-performing small cities. Idaho Falls, Idaho, topped the small-city list.
The current edition of the Milken listings, published annually since 1999, is the first to take a look at the economic conditions during the current coronavirus pandemic.
Provo-Orem, which ranked second in 2020, has been a recipient of the tech sector’s out-migration from the more expensive coastal cities of California. A relatively new innovation center with significantly lower costs than Silicon Valley or Silicon Beach, Provo-Orem has attracted tech giants, including Qualtrics, Vivint and SmartCitizen, among others.
“We’re incredibly heartened by the resilience and economic strength we’re seeing in many Utah cities and towns as the Milken Institute Best-Performing Cities Index shows,” said Gov. Spencer Cox. “We’re optimistic that this trend will continue and expand to all areas of our state.”
New this year, the Milken Institute added housing affordability and broadband access as rankings variables in an effort to more effectively reflect the inclusiveness of local economies.
“The pandemic has had an outsized impact on cities where the economic effects of the current recession are exacerbated by high housing costs,” said Kevin Klowden, executive director of the Milken Institute Center for Regional Economics and California Center. “By measuring for factors such as jobs, wages and high-tech growth, the Best-Performing Cities Index offers analysis of how metro areas have fared based on the resilience of their local economy. And by incorporating data designed to gauge inclusivity, it provides important insights into how cities will be prepared to meet challenges and opportunities for future growth post-pandemic.”
Misael Galdamez, senior policy analyst in the Milken Institute Center for Regional Economics, added: “As we discovered through our rankings, cities perform best when they pursue innovative strategies that allow high-tech industries to grow while still providing affordable costs of living. This alignment provides a foundation for metro areas to become more resilient to economic shock.”
The index measures economic vitality in 200 large metropolitan areas and 201 small metropolitan areas using job creation, wage growth, and innovation industry metrics. The 2021 version of the index emphasizes jobs, wages, high-tech growth, housing affordability, and household broadband access.