4 Tennessee Cities Make List Of New American Boomtowns

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Tennessee Conservative News [By Paula Gomes] –

Four Tennessee cities made the list of new American “boomtowns,” according to a new report from SmartAsset.

The report analyzed more than 400 cities across the country with populations of 65,000 or more to identify those that have grown rapidly. SmartAsset ranked the cities based on changes over a five year period regarding economic output, size of the labor force, and housing. Out of the 400, only the top 75 made the ranked list.

Number 23rd on the list is Clarksville which saw a housing unit increase of 18 percent, labor force increase of 31 percent, and compound annual real GDP growth of 4.8 percent. 

Murfreesboro came in at 25th with a 20 percent increase in housing units, 21 percent increase in labor force, and 4.7 percent growth in compound annual real GDP.

At 56 on the list, is Franklin which saw housing units increase 11 percent, labor force increase by 8 percent, and compound annual real GDP growth of 5.5 percent.

Almost at the bottom of the list, sits Knoxville in 68th place. The city saw a 6 percent increase in housing units, 18 percent increase in labor force, and a 4.5 percent growth in compound annual real GDP.

While “boomtown” communities that see dramatic increases in population and economic output can experience prosperity as a result of the growth, it is often a short-term boom leading to serious problems down the road.

Historically, boomtowns have often faced economic instability due to the “boom-to-bust” cycle. When a specific industry or resource drives growth, a decline in the demand for either, or changes to profitability can lead to quick population decline, a shrinking tax base as a result, and even abandoned infrastructure. In extreme instances, this has resulted in “ghost towns.” 

Another downside as the population grows rapidly in a city is the need for housing, leading to increases in rent and property prices. With the number of available units dwindling as new people move into an area, existing residents must compete for fewer available options at ever higher prices and in some cases, find they must leave the area entirely. 

Related to housing, a city’s infrastructure must bear the burden of an influx of new residents, overwhelming roads, schools, and utilities. This in turn can lead to higher taxes as cities must build new schools, improve roads and otherwise expand infrastructure to accommodate the growth in the population.

About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.