Notwithstanding the importance of federal action, the dynamics that ultimately shape affordability in the United States largely operate at the local level. The pace of population growth, the rate and distribution of job creation and income gains, and the supply and demand of key amenities—especially housing—all vary considerably across the nation’s diverse regional landscape.
Against this backdrop, we have launched our 2025 update to The Brookings Institution's Metro Monitor, which takes a fresh look at economic performance and affordability over the past decade. Using 15 indicators to measure economic performance and the Bureau of Economic Analysis' relative price parity index (RPP) to measure affordability, this analysis examines economic performance and cost-of-living trends at the regional scale across the nation’s 195 largest metro areas.
In their analysis, Brookings’ Glencora Haskins, Joe Parilla, and Mayu Takeuchi find that:
🔷 Despite their relatively low growth trajectories, the most expensive metro areas, including New York and San Francisco, experienced higher increases in overall prosperity than their more affordable peers—revealing differences in how prosperity growth was driven nationwide.
🔷 Of the 82 fastest-growing metro areas metro areas, 78% experienced increases in their relative cost of housing between 2013 and 2023. Many of these high-growth metro areas are now among the least affordable housing markets in the United States.
🔷 Achieving strong growth without losing control of living costs proves difficult, but not impossible. Out of the nation’s 195 largest metropolitan areas, 10 were able to achieve strong growth and prosperity between 2013 and 2023 while maintaining relatively low increases in the cost of living (both overall and for housing, compared to the nation writ large).
Read more of their findings: https://lnkd.in/e5ERzCut