Florida has been a retirement haven for decades thanks to its warm climate, recreational opportunities and lack of income or estate taxes. The state is annually one of the fastest-growing by population thanks to a steady influx of people 65 and older.
No area is capitalizing more on retiring baby boomers than The Villages, located 60 miles northwest of Orlando in central Florida. The metro area, which developed out of the large retirement community of the same name, was the fastest growing metro in the U.S. by population the past two years with a rate almost twice that of any of the other 400 metros in the U.S. The Villages’ metro population, which encompasses Sumter County, has more than doubled since 2001 to a recent 114,800.
The explosive growth propelled The Villages to the top spot in Forbes Best Small Places for Business and Careers, which rates 201 metros with populations below 260,500 (our ranking of larger metros can be found here). The Villages is one of 27 new Metropolitan Statistical Areas classified after the Office of Management and Budget issued updated MSA definitions in Feb. 2013 based on data from the 2010 census.
The Villages is not the spot for companies or employees searching for the next internet startup, but the economy is surging thanks to the services required by the growing population that cover healthcare, financial services, retail and more. A booming housing market has also contributed. New construction helped fuel 2,601 home sales in 2014, according to real estate advisory RCLCO.
The Villages scored well across the board on the dozen factors Forbes uses to rate smaller metro areas. It ranked first for crime, migration and projected economic growth. The Villages’ economy is expected to expand 9.1% annually through 2017, according to Moody’s Analytics. Business costs are 21% below the national average. The only metric where The Villages does not shine is living costs, which rank among the 30% most expensive smaller metros.
Lafayette, Ind. ranks second, up seven spots from 2014 thanks to a much improved employment and economic outlook. Household income growth has also rebounded and is expected to remain strong. Lafayette-based Subaru of Indiana Automotive is in the midst of a $400 million expansion that will add 900 jobs. Purdue University, located in West Lafayette, is a significant driver regarding the area’s economy, human capital and cultural scene. Purdue Research Park and Discovery Park at Purdue University are two thriving innovation communities with comprehensive R&D infrastructures.
Forbes’ 17th annual look at the Best Places for Business and Careers divides the 401 U.S. metro areas between the 200 largest by population and 201 with populations below 260,500 to gauge the best and worst business climates. The top 10 small places hail from 9 different states with only Utah landing two metros in St. George and Logan. The areas are ranked on a dozen factors related to job growth (past and projected), costs (business and living), income and economic growth, quality of life and the education of the workforce. A tip of the cap to our data providers Moody’s Analytics and demographer Bert Sperling, who runs Sperling’s BestPlaces. (click here for a more detailed methodology).
Sioux Falls, S.D. ranks No. 3 overall, up from fifth in 2014 (it ranked first in 2013). Business costs are 19% below the national average, according to Moody’s Analytics’ cost of doing business index, and migration into the area has been strong. The Sioux Falls metro accounts for more than one-third of South Dakota’s economy, and the state offers low taxes and a business-friendly regulatory environment.
Sioux Falls has a significant financial services presence thanks to the softening of anti-usury laws in 1980.
Bend, Ore. (No. 4) and Lawrence, Kans. round out the top five. Moody’s employment forecast for Bend calls for 4.3% annual growth through 2017, second best among the smaller metros. Lawrence, home to the University of Kansas, has one of the most educated labor forces in the U.S. with 50% of adults holding a college degree (third most among smaller metros) and 95% holding a high school diploma (second best).
