Courtesy Provo city

Think what you will about Provo and Orem, but the sister cities have been named the best performing large cities in the U.S. for the second year row.

On Friday, the Milken Institute released its index on the Best Performing Cities for 2022. The index retains an emphasis on jobs, wages and high-tech growth.

Last year’s measures of housing affordability and broadband access were not used in this edition due to delays and changes in the Census Bureau’s data release as a result of the COVID-19 pandemic.

These figures were replaced by the National Association of Realtors’ Housing Affordability Index and Federal Communications Commission data on access to broadband providers, respectively.

“The index distinguishes five tiers across the overall rankings of both large and small cities. By grouping cities with similar scores, we provide a set of benchmarks for city leaders to define objectives for sustained improvement over time,” reads the the report.

Isaac Hale, Daily Herald file photo

Provo-Orem maintained its place at the top of the ranking, buoyed by having the highest levels of employment growth and wage growth over the past five years, as well as the highest one-year employment growth. Provo-Orem also ranked in the top 10 metros for one-year wage growth and five-year high-tech GDP growth, according to the team.

Accoridng to the report, the top-ranked small city was Logan. Salt Lake City was among the “top tier” of large cities, as was St. George for small cities.

“Securing Provo’s long-term economic vibrancy is a top priority. Being honored as the nation’s Best-Performing Large City by the Milken Institute two years running is a reflection of what we have known all along – Provo IS the best place to live and do business,” said Mayor Michelle Kaufusi.

“However, the city ranked much lower for housing affordability, at No. 162, which could be a potential source of concern if higher wages end up pricing lower-income residents out of the community,” researcher Charlotte Kesteven said in the executive summary.

This comes as no surprise to those who not only lead in these communities, but to the residents who struggle to live there

Daily Herald file photo

“Housing affordability is a statewide challenge we are all facing and, if not solved, can negatively impact our economic future,” Kaufusi said. “All deserve a chance at the ‘American Dream,’ with cities helping to close the housing gap through wise land use and local policies. To continue Provo’s economic success, we’re committed to continued development that becomes part of the overall solution.”

Kaufusi’s four pillar approach for making Provo a strong community includes being economically vibrant, forward-looking, safe and welcoming. These, plus the energy of a mixed and diverse community, is what keeps Provo on the Milken list.

“Access to incredible employment capital from two universities and a thriving entrepreneurship environment make Provo a great place for businesses — and our cost of living and easy access to four-season outdoor recreation make Provo a perfect place to call home,” Kaufusi added.

These cities continue to drive economic growth across the nation. They are the primary locations where businesses create new jobs and workers earn higher wages, keeping the United States competitive in the global economy. Each has unique characteristics generated through a combination of investment and policy choices that influence the community’s economic outcomes, the Milken team reports.

“We are pleased to be ranked at the top of such a strong list of cities. This continues to speak to the quality of residents and business owners that live here,” said Orem Mayor Dave Young. “While it is great to be number one, we are not resting on our laurels. There is work to be done and we are committed to putting in the effort required to move the needle on housing affordability. We can’t tackle housing affordability alone, so we are leading conversations with both the private and public sectors to find solutions that are sustainable and beneficial to our community.”

Courtesy Orem City

The Milken Institute’s Best-Performing Cities Index (BPC) provides a means for comparing recent performance among metro areas.

This year’s index continues a trend noted in last year’s edition: A shift in high-tech jobs away from the largest coastal cities toward comparatively affordable in-land cities with thriving local economies.

That said, this year’s index also saw a rebound of some of the traditional tech hubs, notably San Jose and Durham-Chapel Hill, which emphasizes the comparative resilience of high-tech industries in the face of the pandemic, the Milken team reports.

While many of the nation’s traditional high-tech hubs still provide economic opportunities, they are no longer the only centers that create high-paying jobs, marking a shift toward spreading this type of economic success across more of the country, according to the Milken team.

The full Milken Index for Best Performing Cities is available on their website. The report was a team effort between Kesteven, Alissa Dubetz, Abraham Song and Caroline Choi. The Milken Institute is an economic think tank based out of Santa Monica, California.

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