More U.S. Metro Areas Join the Recovery

More U.S. metro areas are joining the recovery. As of May, the number of local areas either recovering or expanding had grown to 292 out of a total 384 across the country, compared with 257 a month earlier. Largest to join the list in May were Tampa, Seattle and Orlando. Florida boasted the largest number of metro areas moving to the growth list during the month with eight. Florida's steepest house price declines are in the past, and the residential construction drag has abated, allowing the state’s expanding healthcare sector to power growth.

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Metro areas in California and Nevada were noticeable laggards in the shift toward growth. Among metro areas in California, less than half are considered in recovery or expansion. Meanwhile, Las Vegas has shown no clear signs of pulling out of its exceptionally deep recession.

We track the progress in each state and metro area through the business cycle monthly, based on our adversity index, a four-factor coincident indicator made up of employment, housing starts, home prices and industrial production. Local economic conditions are also considered. The full results are available here.