The Iowa City metro area has made the grade again

Forbes Magazine ranks the Iowa City area No. 2 in its annual listing of “Best Small Places for Business and Careers.” Iowa City was edged out from the number one spot by Sioux Falls, SD.

Iowa City Area Development Group President Joe Raso said the ranking is a validation of recent national studies recognizing the Iowa City area’s economy, workforce and other factors important to businesses and professionals.

“It’s always great news when we’re recognized,” Raso said. “It just validates a lot of things we talk to people about when we talk to people about the Iowa City area.”

Iowa City Area Chamber of Commerce President and CEO Nancy Quellhorst said Iowa City has a history of being recognized as a place to start a business, so the ranking came as no surprise. She said new businesses are a key component of economic recovery.

“This recognition is well-timed and relevant,” Quellhorst said.

Cost Of Living Still High

The ranking included sub-rankings in categories such as colleges, cost of doing business, cost of living, crime rate and other factors. The Iowa City area was ranked third out of 184 communities in the percent of the population over 25 with a bachelor’s degree or higher, eighth in income growth and 18th in crime rate. Colleges, cost of doing business and job growth ranked in the 30s, as well.

According to the rankings, 95.6 percent of the metro area’s population has a high school diploma, 46.9 percent have a college degree. The median household income is $50,934 and income growth was projected to be 4 percent.

“The subcategories help to define what we tend to hear,” Raso said. “This is kind of a gem within the Midwest…the biggest challenge we have is not enough people know about it. We have the challenge to overcome the mindset of what the Midwest or Iowa is like.”

Iowa City fell short in the cost of living and projected economic growth categories, ranking 103 and 126, respectively. Raso said many employers or professional who come from the coasts or large cities do not notice a dramatic change in the cost of living. However, it’s still an issue that can improve, he said.

“We want to do everything we can to address workforce housing and transportation costs…so that we don’t become a Chicago or other major market where they’re having issues with infrastructure and costs along those lines,” Raso said.

As for economic growth, Raso said the ranking’s projected 1.8 percent job growth for the area is a strength, rather than a weakness. Rather than job growth rates sharply rising and falling, job growth has generally crept steadily higher over the years, Raso said.

“It’s a very steady growth over time,” he said. “What might be tabbed as a concern, I don’t see that.”

via Press Citizen 4/14/10