SmartAsset released their 2018 rankings for “The Best Cities for Living the American Dream.” Here are the top cities and the factors they used to develop the rankings:
Diversity score. To create this statistic, we looked at the population percentage of different racial and ethnic groups in each city. A lower number represents more diversity. Data comes from the U.S. Census Bureau’s 2016 1-year American Community Survey.
Economic mobility. This metric looks at generational change in economic position for families. A higher number shows greater mobility. Data comes from The Equality of Opportunity Project.
Homeownership rate. This is the percent of households who own their home. Data comes from the Census Bureau’s 2016 1-year American Community Survey.
Home value. This is the median home value in every city. For this study, a lower home value is considered better as we use it as a measure of affordability. Data comes from the Census Bureau’s 1-year American Community Survey.
Unemployment rate. This is the unemployment rate by county. Data comes from the Bureau of Labor Statistics and is for January 2018.
Several quick thoughts:
- The five measures seem to make sense. You could quibble with different aspects, such as measuring the unemployment rate at the county level rather than the city or metropolitan region.
- What would make sense to add to this list of five measures? There is no measure of educational achievement on this list and it might be interesting to consider the foreign-born population in each place (particularly since the foreign-born population is at a high in American history). Do lower taxes matter?
- The list is skewed away from two areas: (a) the East and West coasts and (b) the biggest American cities. I would imagine the coastal cities have difficulty with home values. However, it is less obvious to me why the biggest cities, particularly those in the South and Midwest, do not make the top of these rankings.
- How many Americans would give up where they currently live to move to one of these places that supposedly offers a better chance at finding the American Dream? Some experts suggest Americans should simply go where there are opportunities, whether these are jobs, cheaper housing, or less taxes. Yet, it is not necessarily easy to just pick and go, particularly to places like these that might not be very well known. (And, it could also be the case that a large influx of people to each of these top-ranked locations would influence these places.)