Small Towns Are Seeing a Big Economic Boost

Micropolitans Emerge

The pandemic drove Americans from coastal metros to smaller towns, and economic growth is keeping them there.

Many smaller municipalities across the U.S. are thriving, per Heartland Forward’s Most Dynamic Micropolitans 2024 report, which analyzed 527 U.S. cities with a population of 10,000-50,000 based on post-pandemic economic performance.

There are two main industries fueling this trend: tourism and manufacturing.

Domestic Travel

Tourism has been a prominent growth factor for many smaller towns, driving economic growth in seven of the ten top areas as Americans are looking to holiday domestically. This comes as little surprise for well-known tourist destinations like Jackson, Wyoming, or Breckenridge, Colorado. But tourism is also putting lesser-known areas on the map, such as Sevierville, Tennessee, Heber, Utah, and Branson, Missouri.

Meanwhile, manufacturing is driving growth in the American South, where the perception of a more business-friendly environment and a cheaper cost of labor is keeping companies put.

Small Towns Are Getting Bigger

The rise of remote work and quest for a more palatable cost of living have made small-town living increasingly attractive to Americans.

And with a wave of migration over the past years and increasing economic activity, small towns are getting bigger. Jefferson, Georgia — ranked second among the report’s “Top 25 Micropolitan Areas” — has seen its population surge 75% since 2010, per Census Bureau data cited by Bloomberg reporting.

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