Top 15 Cities with the Highest Number of Large Employers
It’s no secret that where jobs are, people follow. When considering a market to invest in, attention to major employers and the overall status of local employment rates are very important information to evaluate.
For example, if a particular city or region has only one or two major employers, this can be a risk to your investment. While business is good it may ensure a time of stability, but if any changes such as an acquisition, a corporate re-structure including lay-offs, or any other issue arise that cause a dramatic shift to the local economy, your investment can be compromised right along with it.
Therefore, it’s important to select markets that have a healthy and diverse environment for employment opportunities, as well as reasonable wages. One of the advantages of multifamily investing is that housing will always be a high priority for most people. Investing in properties where tenets are very likely to maintain their standard of living and income within a city or region is key to protecting your vacancy rates and rent roll. The number of large employers in the area is one factor, among many, to be taken into consideration when investing in a real estate market.
I recommend evaluating this market data with a reasonably wide lense, and to take into consideration not only the specific city but major surrounding areas that also contribute to the local economy. This is what is known as a “metropolitan statistical area”, or MSA. Considering only city data alone can misconstrue or create an incomplete view of a market’s overall investment potential.
Therefore, according to City Data, here are the top 15 MSAs with the highest number of large employers identified through Fortune 1000 in 2019. It should be noted that Fortune 1000 identifies these companies based upon primarily revenue generated and the IRS defines a “large company” as a business having 50 or more full-time employees.
12. Minneapolis, MN
Number of Large Companies: 22
Unemployment Rate: 2.4%
Average Monthly Income: $5,296
Average Monthly Rent (1-2 BR): $1,795
11. Atlanta, GA
Number of Large Companies: 26
Unemployment Rate: 2.9%
Average Monthly Income: $5,128
Average Monthly Rent (1-2 BR): $1,727
10. Philadelphia, PA
Number of Large Companies: 27
Unemployment Rate: 3.8%
Average Monthly Income: $5,248
Average Monthly Rent (1-2 BR): $1,836
Number of Large Companies: 30
Unemployment Rate: 2.9%
Average Monthly Income: $6,280
Average Monthly Rent (1-2 BR): $2,344
8T. Boston, MA
Number of Large Companies: 30
Unemployment Rate: 2.6%
Average Monthly Income: $6,864
Average Monthly Rent (1-2 BR): $3,165
Number of Large Companies: 33
Unemployment Rate: 4.3%
Average Monthly Income: $5,128
Average Monthly Rent (1-2 BR): $2,836
Number of Large Companies: 35
Unemployment Rate: 2.7%
Average Monthly Income: $8,336
Average Monthly Rent (1-2 BR): $3,870
5. San Jose, CA
Number of Large Companies: 38
Unemployment Rate: 2.7%
Average Monthly Income: $10,940
Average Monthly Rent (1-2 BR): $3,054
4. Dallas, TX
Number of Large Companies: 43
Unemployment Rate: 3.1%
Average Monthly Income: $5,192
Average Monthly Rent (1-2 BR): $1,224
3. Houston, TX
Number of Large Companies: 46
Unemployment Rate: 3.6%
Average Monthly Income: $5,812
Average Monthly Rent (1-2 BR): $1,368
2. Chicago, IL
Number of Large Companies: 65
Unemployment Rate: 3.4%
Average Monthly Income: $5,412
Average Monthly Rent (1-2 BR): $1,868
1. New York, NY
Number of Large Companies: 113
Unemployment Rate: 3.9%
Average Monthly Income: $7,064
Average Monthly Rent (1-2 BR): $3,514
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About the Author
Ellie Perlman is a real estate investor who owns multifamily properties across the U.S.
She is the Founder and CEO of Blue Lake Capital, a real estate investing firm specializing in multifamily investments. At Blue Lake Capital, Ellie helps investors grow their wealth by investing alongside her in large multifamily deals.
Ellie leads a mentoring program, , where she coaches people to become multifamily syndicators by building a syndication business and scaling it.
She started her career as a commercial real estate lawyer, leading real estate transactions for Israel’s largest real estate company. Later, she transitioned to a property manager role and oversaw properties worth over $100MM.
Ellie holds a Masters in Law and an MBA from MIT Sloan School of Management. She is a Forbes author and a real estate investing podcast host.
You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.
Sources for this Blog Post:
City Data: http://www.city-data.com/forum/city-vs-city/3050709-2019-fortune-500-1000-msa-city.html
Bureau of Labor Statistics: https://www.bls.gov/sae/home.htm
Rent Jungle: https://www.rentjungle.com/rentdata/
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