Southern Boom Towns Still Can’t Match Big City Appeal

Southern U.S. cities have been thriving since the pandemic, enjoying rapid population and job growth, yet they still lag behind legacy cities when it comes to global influence, as reported by GlobeSt.

Kearney’s 2024 Global Cities Report sheds light on the strengths and shortcomings of these emerging markets and provides insights into what it will take for them to truly compete on the world stage.

Southern Growth Surge

Pandemic-driven migration patterns have seen people, businesses, and capital flow away from traditional powerhouses like New York, Chicago, Los Angeles, and San Francisco to burgeoning Southern cities. 

Southern upstarts like Dallas, Houston, Atlanta, Miami, D.C., and Charlotte have all seen notable growth, accounting for 66% of national job expansion and 87% of population gains this year.

However, while the Southern shift has helped distribute talent and economic activity across the country, Kearney’s Global Cities Outlook (GCO) suggests these newer hubs need more than just growth to sustain their rise.

Legacy Cities Still Lead

The report’s Global Cities Index (GCI) shows that the top 25 global cities have remained mostly consistent over the past decade despite disruptions caused by social, geopolitical, and technological transformations. 

The report also notes that while many have moved away from legacy cities due to concerns about security and stability, the pull of Southern cities may not be enough to keep them there in the long term. 

These emerging cities have yet to create an “inspirational growth story” that combines sustainable economic development with an attractive quality of life, cultural appeal, and innovative business environments—and legacy cities like NYC have that in spades.

“This means the jury is out on whether Southern cities are a long-term inspirational option for people and companies looking for a sustainable growth environment,” said Kearney.

Strategic Recommendations

To elevate their status on the global stage, Southern cities must take a page from the playbooks of established legacy cities. Kearney suggests several strategies:

1. Public-Private Partnerships: City governments and enterprises should collaborate to develop civic and business organizations that channel resources toward city improvement. Examples of legacy cities include the Partnership for New York City, the Chicago Commercial Club, and the Bay Area Partnership.
2. Scale VCs, Incubators: Emerging markets need to foster environments that encourage entrepreneurship and innovation. By scaling up support for startups and attracting venture capital, these cities can drive the economic diversification needed for long-term growth.
3. Attract Outside Investment: Forming dedicated teams to attract corporate relocations and external investment can help Southern cities build competitive advantages.
4. Focus on Quality of Life: To retain talent and attract global attention, Southern cities need to enhance cultural offerings, improve infrastructure, and ensure a high standard of living.

Why It Matters

The Kearney report underscores that Southern cities have the potential to become the next generation of economic powerhouses, but they must cultivate an environment that inspires sustainable growth and innovation. 

By leveraging best practices from legacy cities, these emerging markets can bridge the gap and carve out a more prominent role in the global economy.

With the right strategic investments and collaborations, Southern boom towns can turn their current momentum into long-lasting influence, ensuring they remain competitive players on both a national and international scale.