Forbes
The best cities to start a business -- or a career
Weighing the costs of doing business, the costs of living and the quality of life, these metro areas stand above the rest.
By Forbes.com
In a year of rising prices, some metro areas stand out when it comes to keeping costs down and attracting smart people.
Consumers aren't the only one feeling the pinch at the pump. Energy prices rose 6.6% for businesses last year, along with an 8% jump in taxes. The most expensive state in which to hang your shingle is California, which has 12 of the 20 costliest metro areas in the nation. (Hint: Housing prices had a lot to do with it.)
Our seventh annual ranking of Best Places for Business and Careers relies again on Economy.com, the West Chester, Pa. research firm, which helped us weigh business costs (labor, energy, tax and office space expenses) and living costs (housing, transportation, food and other household expenditures). Economy.com also helped assess the education levels of the work force, as well as job and income growth and migration patterns over the past five years.
For quality-of-life issues we examined crime rates and used a culture-and-leisure index developed by Bertrand Sperling, a consultant in Portland, Ore., who keeps track of museums, theaters, golf courses, sports teams and the like.
The top 5
1. Boise, Idaho
Population: 488,000
Job growth: 2.4%
Income growth: 3.2%
Big employers: Micron Technology, Mountain Home Air Force Base, Hewlett-Packard, St. Luke's Regional Medical Center, Albertsons.
Job growth in Boise ranks No. 8 among the 150 largest metro areas during the past five years; employment has been strong across all industries. Residents also have benefited from a steady decline in living costs. Click here for more information on Boise.
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2. Raleigh-Durham, N.C.
Population: 1,313,00
Job growth: 0.7%
Income growth: 1.7%
Big employers: Duke University, University of North Carolina, IBM, North Carolina State University, GlaxoSmithkline.
Last year, Credit Suisse First Boston, Merck and chipmaker Cree announced plans to invest a total $700 million in the area. Two big draws: 39% of the adult population has a college degree and business costs are 12% below the national average. Click here for more information on Raleigh-Durham.
3. Austin, Texas
Population: 1,402,000
Job growth: 0.6%
Income growth: 2.4%
Big employers: University of Texas, Dell, Seton Healthcare Network, IBM, Freescale Semiconductor.
Austin's gross metro product growth has slumped after annual gains of more than 10% in the late 1990s. But look for the economy to rebound to 7% a year through 2008, thanks to one of the nation's smartest work forces. Click here for more information on Austin.
4. Washington D.C. - Northern Va.
Population: 5,292,000
Job growth: 1.8%
Income growth: 3.9%
Big employers: Verizon Communications, Safeway, Marriott International, Inova Health System, BAE Systems.
The unemployment rate for the nation's capital is a staggering 7.1%, but a tight labor market in northern Virginia brings the rate for the metro area as a whole down to 3.1%, the fourth lowest in the country. Click here for more information on Washington metro area.
5. Albuquerque, N.M.
Population: 764,000
Job growth: 1.3%
Income growth: 1.7%
Big employers: Kirtland Air Force Base, University of New Mexico, Sandia National Labs, Presbyterian Healthcare Services, Intel.
Business costs are the lowest in the country, 27% below the national average. The area's crime rate has fallen faster than the U.S. average, but it still ranks in the bottom quintile and keeps Albuquerque from being ranked on top. Click here for more information on Albuquerque.
See the rest of Forbes' Best Places for Business list.
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