Austin and Round Rock equipped to survive potential recession, says new study
Amid continued rumblings about a looming recession, both Austin and Round Rock are well-equipped to weather the economic storm when it hits, a new study shows.
Personal finance website SmartAsset ranks Austin fifth on its new list of the country’s most recession-resistant cities, and Round Rock comes in at No. 11. Austin is the largest city in the top 10.
To identify the most recession-resistant cities in the U.S., SmartAsset examined nine metrics across three categories: employment, housing, and social assistance. The analysis considered recent figures as well as figures from the Great Recession. In all, SmartAsset reviewed data for 264 U.S. cities.
Austin ranks within the top 11 percent across all of the study’s categories: 13th for employment, 26th for social assistance, and 29th for housing. Round Rock lands in the top 15 percent.
Economic analysis company Policom Corp. positions Austin as the third strongest metro economy in the U.S., behind Nashville and Seattle. No other Texas metro makes the top 10.
In December, Sarah House, senior economist at Wells Fargo Securities, said the Austin economy remains strong but is cooling off, signified by a slowdown in hiring across various industries. However, she added, the housing market continues to be “hot” and the influx of new residents endures.
“Strong population growth is supportive for the region’s longer-term prospects,” House noted in a presentation hosted by the Greater Austin Chamber of Commerce, “but has created some near-term growing pains in terms of affordability.”
Overall, the Lone Star State is poised to respond well to a potential recession. In the top 10 of the SmartAsset ranking, Frisco took the top spot, followed by Plano at No. 3, Denton at No. 4, and Lubbock at No. 7. Elsewhere in Texas, Arlington appears at No. 19 and Killeen at No. 20.