Hearing the word “recession” is enough to make anyone tense. In times of economic uncertainty, it’s natural to wonder how secure your financial situation is.
While a recession isn’t currently underway, a recent SmartAsset study sheds light on which U.S. cities are best positioned to weather potential economic storms.
This study, which analyzed 429 cities and towns across the nation, evaluated each location based on nine individual metrics spanning four critical categories: employment, housing, social assistance, and economic stability.
Discover the top cities that offer a safe harbor during financial turbulence and learn what makes them resilient.
Here’s a detailed look at the top 10 cities that have the economic stability to withstand a recession:
1. Castle Rock, Colorado
- Key Points: Castle Rock takes the lead as the number one city to endure a recession.
- Specific Metrics: Less than 1% of households rely on social assistance, showcasing a strong, self-sufficient community.
- Health Coverage: Nearly 96% of residents have health insurance coverage, ensuring access to necessary healthcare services during tough times.
- Location Advantage: Just 45 minutes from Denver, residents enjoy access to a major metropolitan area’s amenities and job opportunities.
2. Highlands Ranch, Colorado
- Key Points: Another Colorado city, Highlands Ranch, secures the second spot, reinforcing the state’s economic resilience.
- Poverty Levels: Highlands Ranch boasts the lowest percentage of impoverished residents in the entire SmartAsset study, highlighting its affluent and stable population.
- Health Insurance: Only about 4% of residents lack health insurance, indicating strong financial security and access to healthcare.
- Proximity: As a suburb of Denver and only a 30-minute drive from Castle Rock, Highlands Ranch benefits from regional economic strength.
3. Overland Park, Kansas
- Key Points: Overland Park stands out in the Midwest as a city well-prepared for economic downturns.
- Category Performance: The city fared well in housing, social assistance, and economic stability, demonstrating a balanced approach to weathering recessions.
- Labor Force Participation: A significant 72% of residents participate in the labor force, indicating a strong and active workforce.
- Poverty Rate: A low percentage of residents live below the poverty line, contributing to the city’s overall economic health.
4. Kirkland, Washington
- Key Points: Kirkland benefits from its location in Washington, a state known for its robust economy.
- Economic Stability: Ranked second highest in economic stability, Kirkland is a safe haven during financial storms.
- GDP Growth: Its three-year GDP growth rate of 5.8% is the 16th-highest in the study, reflecting strong economic momentum.
- Proximity to Seattle: As a suburb of Seattle, Kirkland enjoys the advantages of a thriving tech industry and diverse job market.
5. San Mateo, California
- Key Points: San Mateo, located south of San Francisco, combines urban and suburban advantages.
- Poverty Level: Approximately 6% of San Mateo residents live below the poverty level, a relatively low figure compared to other urban areas.
- Social Assistance: Only 2% of households rely on social assistance, indicating financial independence among residents.
- Mortgage Delinquency: The city boasts a low mortgage delinquency rate, reflecting responsible homeownership and economic stability.
6. Mountain View, California
- Key Points: Nestled in the heart of Silicon Valley, Mountain View benefits from a concentration of tech companies and high-paying jobs.
- Health Insurance Coverage: An impressive 98% of residents have health insurance, the highest in the study, ensuring access to quality healthcare.
- Labor Force Participation: The city sees a high labor force participation rate, indicative of a strong and active workforce.
- Mortgage Delinquency: A low mortgage delinquency rate underscores the financial stability of its residents.
7. Sandy, Utah
- Key Points: Sandy is recognized not only as one of the best places to live in Utah but also as a safe bet for weathering recessions.
- Public Assistance: Just 1.7% of households receive public assistance, highlighting the community’s self-reliance.
- Unemployment Rate: Located near Salt Lake City, Sandy has a low unemployment rate of 2.5%, ensuring job security for many residents.
- Food and Housing Insecurity: Less than 8% of residents report food or housing insecurity, reflecting a high quality of life.
8. Olathe, Kansas
- Key Points: Olathe is another Kansas city that ranks high due to its strong economic fundamentals.
- Employment and Housing: The city benefits from low unemployment and mortgage delinquency rates, providing stability for homeowners and job seekers.
- Labor Force Participation: With nearly 72% of its population in the labor force, Olathe demonstrates a robust and active workforce.
- Suburban Amenities: Known for its dense suburban feel and numerous parks, Olathe offers a desirable lifestyle that attracts and retains residents.
9. Bellevue, Washington
- Key Points: Situated across Lake Washington from Seattle, Bellevue combines scenic beauty with economic stability.
- Economic and Housing Stability: The city scores high in economic stability and housing, making it a reliable place to weather financial storms.
- Poverty Level: Less than 8% of residents live below the poverty level, indicating a prosperous community.
- Labor Force Contribution: Just over 65% of its residents contribute to the labor force, maintaining a strong economic base.
10. Layton, Utah
- Key Points: Layton stands out as Utah’s single largest employer within its state lines, providing a stable job market for its residents.
- Labor Force Participation: Nearly 73% of its population participates in the labor force, reflecting a hardworking and engaged community.
- Poverty Rate: Less than 8% of residents live in poverty, showcasing economic well-being.
- Health Insurance Coverage: About 90% of the population has health insurance, ensuring access to healthcare services.
Alicia Richards