Austin Business Journal posted an article this morning about the growth in Austin’s Gross Metropolitan Product in 2010 — just under 7%, compared to 2.5% average GMP nationally. Here is their source, from Business First of Buffalo:
Among all 366 metro areas analyzed, the Austin-Round Rock-San Marcos area was the 35th largest local economy. It ranked 13th on GMP growth rate:
Notice that most of the other cities on that list are much smaller economies. Among the 50 largest metropolitan economies, the Austin/Central Texas area enjoyed the 2nd fastest GMP growth last year, only led by California’s Silicon Valley:
Obviously, Northern California experienced the housing downturn very differently than we did here: According to the Case-Shiller Home Price Index through June 2011, the average home value was down 38% from the peak in May 2006. Austin home values gained 16% over the same period. That’s a difference that may last a long time given the size of the housing bubble that burst in California.
On the other hand, Northern California and Austin have been compared many times, and they have a lot in common in terms of technology-driven economies and entrepreneurial spirit. It is great to see both growing. These cities should be pacesetters for the national economy in the coming months and years.