The Ten Fastest Growing Cities Might Surprise You

Lists are always interesting and two of my favorite areas are the growth or decline of cities. I love to know which ones are going which direction and why. CNNMoney has recently listed the ten fastest growing cities. Not surprisingly, the Sun Belt dominated the list. People are going to the places that create jobs and economic opportunity, most of those places are in the South.

That doesn't mean there wasn't surprises. I was shocked by how few of the names I was familiar. Most of these cities are smaller, but they usually are very near large cities and they are all growing very rapidly.

The top ten list:

1) New Orleans. One of the few cities I am familiar with is also the fastest growing. This is no mystery. Short of Hollywood, there is no other city more loved by the celebrity set and it has gotten enormous attention since it became a ghost town after Katrina. It is some what easy to be one of the fastest growing when you start with almost zero. It had a 13.8 percent increase in population in the last year.

2) Victorville, CA. Less than two hours from Los Angeles, this heavily Republican area has grown over 80 percent in the last decade. A favorite for movie production and growing in popularity because of the high cost of living in LA. It has experienced a 9.5 percent increase in the last year.

3) McKinney, TX. This Dallas suburb has enjoyed an 8 percent increase in the last year and is one of three Texas cities on the list. This is no surprise since Texas has been a bastion of economic growth and is a beacon to the rest of the country.

4) N. Las Vegas, NV. In spite stories that the West's city that never sleeps recent decline, North Las Vegas has exploded with a 7.4 percent increase in the last year.

5) Cary, NC. This Raleigh suburb that is in the heart of the deep South has seen a 7.3 percent annual increase.

6) Killeen, TX. The second of three Texas cities is little more than an hour from Austin, but otherwise is in the middle of no where. It has grown 6.5 percent.

7) Port St. Lucie, FL. In beautiful Southern Florida and off the Atlantic coast, Port St. Lucie has enjoyed a 6.3 percent growth.

8) Gilbert, AZ. I have a friend who lives in this growing suburb of Phoenix and he loves it. It has enjoyed a 5.8 percent increase.

9) Clarksville, TN. Just an hour Northwest of Nashville, Clarksville has been another beneficiary of southern prosperity. It has seen a 4.8 percent increase in growth.

10) Denton, TX. This Dallas suburb is the third and final Texas city and rounds off the list with a 4.7 percent increase in population growth.

The common characteristics of these cities is that they are all in the South and West and they are all in states with generally pro-growth economic policies. Also, with very rare exception, they are all heavily Republican (by the way, the cities that have lost the most residents are dominated by Democrats, but we will cover that on a future post).

People continually vote with their feet. Bad policies and bad politics simply drive people to places that are better.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

The Real Reason the Saudis Won't Provide More Oil

The media is up in arms over the fact that Saudi Arabia has told the United States that it won't be increasing its supplies of oil into the market. Talk show hosts have been up in arms, arguing that the Arab nation is gouging the US and other Western countries with high prices. Why don't they just provide more oil? Why be so greedy? Don't the Saudis know what we have done for them? It appears the situation may not be that simple.

According to energy economists, the Saudis are suppose to double its output over the next ten years. However, it is being reported by the New York Times that "capacity will probably stall near current levels, potentially creating a significant gap in the global energy supply" according to government officials and energy executives in both the US and Saudi Arabia. Just recently a friend of mine told me that the stock market advise newsletters were about to release this story. But it is really old news because the article is over four years old.

So over four years this story was out there, but little has been done about it. This is just among a long list of reasons why we have needed a national energy policy. Four years ago gas was a little more than half the price it is today. That was the time to take advantage of important information such as this, but I am sure the politicians didn't want us to be alarmed. Maybe if we ignored it, the problem would some how go away.

The United States is sitting on approximately 200 years worth of oil based on current consumption levels according to most analysts in the energy industry. It is at places we may not like to explore -- Alaska, the coast of California, and the coast of Florida. But our technological abilities to pursue such in a manner that is environmentally sound and with minimum impact is better now than ever and our freedom, economy, security, and future hang in the balance. We should have taken action four years ago. We should have taken action four decades ago. We certainly better take action today.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Florida Democratic Debate Has Highest Ratings To Date

It appearst that people finally seem interested in the 2008 race for the presidency. Will, that's the impression you get from a recent article in MediaBistro:

Last night's MSNBC debate in Florida was the highest rated debate that MSNBC has aired in this presidential election cycle. The previous high was the Democratic debate on January 15.

The debate averaged 2,636,000 million total viewers and 876,000 in the A25-54 demo (using Nielson Live + SD figures).

Why the sudden surge in interest? I believe the elimination of candidates is making the race far more interesting to viewers. We are finally "getting rid of the riffraff," making it something worth watching.

Before we get too excited about the results, 2.6 million is less than 1 percent of the population. But for MSNBC, this is huge.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

The Best Cities for Jobs

With unemployment hoovering around 4.5 percent, unemployment is relatively inconsequential in general. However, some cities are better than others. Recently Forbes Magazine listed the top 100 cities for jobs and I noticed they have a few things in common.

* They are in low tax states, such as Texas, Florida, Arizona, and Virginia.

* They are in the South and West. This is why these states are booming in population growth as well. All of the top ten cities are in the South and West (Hawaii being the far West). Some would call DC a northern city and although it has characteristics of such, the demographic includes Southern cities in Virginia. Furthermore DC is a boom city for jobs because of government, which can only happen in the nation's capital. Everywhere else, government is a job destroyer. The next ten cities are also all in the West and South except for number 11 which is made up of cities in Maryland. They, too, are near DC and make money off of big government. The South and West remain the primary job drivers through out the list. Florida is particularly strong, including Orlando, Florida (Home of Disney World, above).

* They are all mostly in states that are predominantly governed by Republicans in the State Houses. These Republicans largely have created jobs through their tax, regulatory, and licensure laws that are friendly to business. Some of these Republicans got beat in the last election cycle, I suspect that people that came from poor performing states inadvertently booted them out. I discuss phenomenon in a previous blog entry.

* These cities are growing rapidly. This could change if the policies in the states they are in change (as the governments have) and become anti-jobs.

I hope people take more than a casual look at the growth of jobs in this country and recognize what the cities (and states) that foster growth have in common. Furthermore, I hope governments practice the policies of low taxes, sensible regulations, and reasonable licensure laws. All of these are factors that contribute to positive job growth.

Which States Are Hot? Which States Are Not? And Most Importantly, Why?

Recently, Bloomberg announced which states are hot -- in terms of population growth and decline -- and which states are not, but there is not a great deal of explanation as to why. The top 10 states for increasing population (between July 2006 and July 2006) are:

Arizona 213,311 3.6%

Nevada 83,228 3.5%

Idaho 37,098 2.6%

Georgia 231,388 2.5%

Texas 579,275 2.5%

Utah 59,729 2.4%

North Carolina 184,046 2.1%

Colorado 90,082 1.9%

Florida 321,697 1.8%

South Carolina 74,316 1.7%

There are several unique characteristics about these population shifts:

* They are often huge. Texas gained over 500,000 in one year! This is absolutely significant. This is not only due to the horrible affects of Katrina that hit in the summer of '05, but because of the huge number of businesses that have relocated to the state.

* All of these states lean Republican or are very Republican. Republican strategists lips salivate when they think of these population shifts to their state. This means more Congressional seats moving to their states and away (as you will see later) from Democrat states. However, they may be surprised by the long term results, as I will explain later.

* They are all in the West or (even more so) the South. This has been a trend that has persisted for decades and continues to be the case. Politically, the implications of this are significant. All of our Presidents since John F. Kennedy have been from Texas, California, Georgia, and Arkansas. The only exception to this trend was Gerald Ford, who was from Michigan. But remember, he was not elected.

What about states that have seen decline?

Connecticut 4,108 0.1%

Mississippi 2,044 0.1%

Ohio 7,321 0.1%

Massachusetts 3,826 0.1%

New York -9,538 0.0%

Michigan -5,190 -0.1%

District of Columbia -519 -0.1%

Rhode Island -5,969 -0.6%

Louisiana -219,563 -4.9%

So what can we observe about the decline of these states?

* They are in predominantly Democratic states. Five of these bottom 10 are strong Blue states. Only two are consistently Red (Louisiana and Mississippi) whose decline can be attributed to Katrina, which hit in the summer of 2005. This, again, makes Republicans excited and Democrats concerned, but the long term implications could prove different.

* They are on the East Coast and Midwest. With the exception of Louisiana and Mississippi, all of these are in the East Coast and Midwest, which have also suffered when it comes to political prestige.

What are the lessons learned?

I believe that the political and economic environment of many of these states have become so hostile to entrepreneurship and economic growth, people are voting with their feet in a quest to find better jobs and opportunities. Michigan has taken a pounding for decades (my family was among the "Michiganders" who flew South to flee the rust belt in the 1970s) and continues to face economic pressures due to unions that international competitors never have to encounter. New York and Connecticut are noted for their constant regulatory pressures they apply on business, forcing many to have little choice but to leave. The list goes on, people are leaving these states on the quest for economic freedom and they feel as though they are finding them in the above top ten states.

I believe Republicans, who appear to be the winners in these shifts, should be cautious in their enthusiasm. I remember when I worked as an aide for US Senator Gordon Humphrey (R-NH). That state had become extremely Republican by the 1980s and was enjoying growth as people fled the disastrous political and economic situation in Massachusetts just to the South. Eventually New Hampshire became Democratic as people moved who knew there were things wrong with their home state -- taxes, crime, etc. -- but didn't realize that the people they were voting for was the source of their problems. So once they moved to a new promise land, they brought the same terrible policies with them.

The future looks bright for Republican states on paper, but this will only be the case if new voters support the very policies that have made these states so attractive in the first place.