2014-04-16

Brainpower rankings usually identify the usual suspects: college towns like Boston, Washington, D.C.,  and the San Francisco Bay area. And to be sure, these places generally have the highest per capita education levels. However, it’s worthwhile to look at the metro areas that are gaining college graduates most rapidly; this is an indicator of momentum that is likely to carry over into the future.

To determine where college graduates are settling, demographer Wendell Cox analyzed the change in the number of holders of bachelor’s degrees and above between 2007 and 2012 in the 51 metropolitan statistical areas with over a million people (all saw gains). For the most part, the fastest-growing brain hubs are in the South and Intermountain West (which excludes the states on the Pacific Coast). Some of these places are usually not associated with the highest levels of academic achievement, and for the most, they still lag the national average in college graduation rates.

But times are changing, and educated people are increasingly heading to these metro areas, notably in the South, were job growth has been robust and the cost of living is far lower than in the San Francisco Bay Area, New York or Los Angeles. This includes New Orleans, which ties for first place on our list with San Antonio. The New Orleans metro area’s population of college graduates grew by 44,000 from 2007 to 2012, a 20.3% increase, nearly double the national average of 10.9%. (The percentage of college grads in the U.S. stood at 19.4% in 2012, up from 18% in 2007.)

New Orleans’ story, of course, is unique; the jump certainly is partly due to the return of evacuees to the city after Katrina, and some scoff that the region is destined to return to its historical pattern of exporting its educated young. But right now the American Community Survey data seems to indicate otherwise, as does the decision in recent years by numerous technology, videogame and media businesses to establish operations in the metro area, including General Electric, Paris-based Gameloft and the satellite communications company Globalstar, which in 2010 moved its headquarters from Silicon Valley to Covington, a prosperous suburb of the Crescent City.

What is happening in New Orleans, where I have worked as a consultant, is unique, but it also follows a broader pattern that we see in other areas. Unable to afford to settle long-term in traditional “brain centers,” educated people are increasingly looking for places that have strong economies but also many of the cultural and natural amenities associated with the traditional meccas for the educated. With housing prices that are half to a third of Silicon Valley or San Francisco, New Orleans offered educated workers, particularly younger ones, many of the things they look for, but at an affordable cost.

“For $65,000 a year in San Francisco you get a shared apartment and no car,” says long-time New Orleans tech entrepreneur Chris Reed. ”Here, you get great restaurants and clubs, and you get to have a car and your own nice apartment. It’s a no-brainer.”

Other cities with some of the same characteristics are also winning in the race to bring in more educated workers. Nowhere is this more true than in Texas, which is home to four of the top 12 metro areas on our list. Tops is co-first place San Antonio, which had a net gain of 76,000 college-educated people since 2007, or 20.3%.

Like New Orleans, the San Antonio area has traditionally lagged behind in attracting educated people; nearly one resident in six does not have a high school diploma. But the old Texas town also has many amenities that appeal to educated workers, notably great food and a good nightlife scene. In addition, it boasts one of the fastest-growing regional economies in the country, with expanding tech and energy businesses, something that may have a particular appeal in this still weak recovery.

“When the buzz starts … and hipsters start to get wise to the neighborhood assets that are here, once the hipsters get wind of it – you’ll have to beat them away with a stick,” says economic geographer Jim Russell.

Austin places third, which should come as no surprise — the area is home to the main campus of the University of Texas, boasts a thriving music scene and a strong technology infrastructure. Nor should the rapid growth of educated residents in sixth-ranked Houston, up 16% since 2007, which also enjoys low costs, an increasingly attractive cultural scene and one of the fastest growing hubs of dense urban living in the country. Dallas, also a fast-growing area, lands in 12th place on our list, boosting its college graduate population by 13%, or 175,000.

One of the more surprising metro areas in our top 10 is fifth place Louisville, Ky.-Ind. The home of Humana, it has a thriving health care sector, and also is strong in the food industry and logistics. It has seen a 16.2% increase in the number of educated residents.

Strong growth has also occurred in the Intermountain West, led by Denver (seventh) and Salt Lake City (eighth). Both areas have been beneficiaries of the migration of people and companies from California. This may also explain the growth of 11th place Phoenix, an area that has made remarkable strides since the disastrous days of the housing bust and is once again attracting migrants in larger numbers than any large metro area outside Texas.

So if these areas are leading the race to capture “talent,” who is lagging behind? Not surprising at the bottom of the list are a series of Rust Belt cities with relatively weak economies, led by last place Detroit, where the number of college-educated residents rose 4.1%. Its followed by Providence,  Cleveland and Cincinnati.

Boston, long styled as the “Athens” of America, ranks 47th on our list. Over the past five years Boston has gained some 98,000 college educated people, an increase of 7.2%, well below the national average. Beantown, of course, can always claim it has the highest “quality” brains but even in terms of percentage gains of people with graduate degrees it ranks only 41st .

The data show the universe of educated people is not becoming more “spiky” as some suggest, but is spreading out. This is true not only in terms of percentage growth, but in absolute numbers. Since 2007, for example, the Houston and Dallas metro areas have added more BAs than San Francisco-Oakland, and nearly twice as many as Boston. As a result, these and other such cities are gaining a critical mass in brainpower not widely recognized in the Eastern-dominated media.

At very least, we can say that the conventional wisdom favoring the traditional “brain” cities seems flawed. There will always be areas with more educated people per capita than others, if for no other reason than historical inertia and lack of migration, particularly among the less educated. But the clear pattern now is for brainpower, like population and jobs, to continue dispersing, largely to the South, the Southeast and the Intermountain West, with ramifications that will be felt in the economy in the decades ahead.

EDUCATIONAL ATTAINMENT: 2007-2012: CHANGE OF BA & HIGHER

2007

2012

Change

%

Rank

New Orleans. LA

       172,965

       216,970

       44,005

20.3%

1

San Antonio, TX

       300,114

       376,445

       76,331

20.3%

2

Austin, TX

       382,119

       477,058

       94,939

19.9%

3

Nashville, TN

       287,154

       355,630

       68,476

19.3%

4

Louisville, KY-IN

       195,760

       233,566

       37,806

16.2%

5

Houston, TX

       972,615

    1,157,627

     185,012

16.0%

6

Denver, CO

       595,437

       708,325

     112,888

15.9%

7

Salt Lake City, UT

       193,167

       229,140

       35,973

15.7%

8

Jacksonville, FL

       221,907

       258,893

       36,986

14.3%

9

Raleigh, NC

       278,754

       324,318

       45,564

14.0%

10

Phoenix, AZ

       709,284

       818,434

     109,150

13.3%

11

Dallas-Fort Worth, TX

    1,155,069

    1,330,312

     175,243

13.2%

12

Charlotte, NC-SC

       348,923

       401,116

       52,193

13.0%

13

Baltimore, MD

       589,874

       677,837

       87,963

13.0%

14

Rochester, NY

       244,277

       280,650

       36,373

13.0%

15

Portland, OR-WA

       479,207

       549,825

       70,618

12.8%

16

Birmingham, AL

       187,094

       214,201

       27,107

12.7%

17

Philadelphia, PA-NJ-DE-MD

    1,204,380

    1,377,684

     173,304

12.6%

18

San Diego, CA

       631,996

       722,819

       90,823

12.6%

19

Columbus, OH

       367,811

       419,136

       51,325

12.2%

20

Minneapolis-St. Paul, MN-WI

       774,669

       881,581

     106,912

12.1%

21

Washington, DC-VA-MD-WV

    1,658,902

    1,885,862

     226,960

12.0%

22

Las Vegas, NV

       257,886

       293,001

       35,115

12.0%

23

Indianapolis. IN

       333,079

       377,189

       44,110

11.7%

24

San Francisco-Oakland, CA

    1,251,139

    1,414,393

     163,254

11.5%

25

Memphis, TN-MS-AR

       197,292

       222,813

       25,521

11.5%

26

Seattle, WA

       814,902

       918,119

     103,217

11.2%

27

Oklahoma City, OK

       210,720

       237,329

       26,609

11.2%

28

St. Louis,, MO-IL

       521,047

       586,547

       65,500

11.2%

29

Pittsburgh, PA

       456,717

       513,838

       57,121

11.1%

30

San Jose, CA

       527,167

       592,703

       65,536

11.1%

31

Kansas City, MO-KS

       410,109

       460,391

       50,282

10.9%

32

Miami, FL

    1,058,815

    1,186,398

     127,583

10.8%

33

Virginia Beach-Norfolk, VA-NC

       284,924

       317,741

       32,817

10.3%

34

Buffalo, NY

       207,907

       231,718

       23,811

10.3%

35

Riverside-San Bernardino, CA

       469,381

       519,680

       50,299

9.7%

36

Richmond, VA

       205,014

       226,912

       21,898

9.7%

37

Los Angeles, CA

    2,458,215

    2,720,654

     262,439

9.6%

38

Hartford, CT

       276,002

       305,100

       29,098

9.5%

39

Chicago, IL-IN-WI

    1,984,496

    2,190,424

     205,928

9.4%

40

Tampa-St. Petersburg, FL

       496,826

       544,121

       47,295

8.7%

41

Milwaukee,WI

       308,214

       337,253

       29,039

8.6%

42

New York, NY-NJ-PA

    4,433,180

    4,836,321

     403,141

8.3%

43

Sacramento, CA

       403,140

       435,485

       32,345

7.4%

44

Atlanta, GA

    1,151,723

    1,243,122

       91,399

7.4%

45

Orlando, FL

       379,636

       409,263

       29,627

7.2%

46

Boston, MA-NH

    1,271,193

    1,369,597

       98,404

7.2%

47

Cincinnati, OH-KY-IN

       393,076

       419,714

       26,638

6.3%

48

Cleveland, OH

       380,479

       405,731

       25,252

6.2%

49

Providence, RI-MA

       301,591

       320,262

       18,671

5.8%

50

Detroit,  MI

       786,153

       819,347

       33,194

4.1%

51

Total

  34,181,501

  38,352,595

  4,171,094

10.9%

Outside MMSAs

  20,152,010

  22,389,927

  2,237,917

10.0%

United States

  54,333,511

  60,742,522

  6,409,011

10.6%

Cross-posted at New Geography.

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