Local investment and economic expansion are encouraging signs to citizens everywhere, because of the inherent quality of life improvements they signal. So, New York-based financial technology company SmartAsset completed a study on counties receiving the greatest amount of investment in their local economies to uncover the places poised to grow.
Kern County ranked among the top places in California due to a high showing in each of the factors considered by the company including: business establishment growth, GDP growth, new building permits, and municipal bond investment.
There are several ways individuals, governments and businesses can invest money in a county or region. Our study aims to capture the places across the country that are receiving the most incoming investments in business, real estate, government and the local economy as a whole. To do this we looked at four factors: business establishment growth, GDP growth, new building permits and municipal bond investment. SmartAsset looked at the change in the number of businesses established in each location over a 2-year period. This shows whether or not people are starting new business ventures in the county.
The second factor they looked at was the GDP growth, using real growth (inflation adjusted) in the local economy. Investment and development in the local residential real estate market were also considered. To measure this real estate growth, the number of new building permits per 1,000 homes was calculated.
The final factor considered was investment in municipal bonds. Per capita investment in local government/agencies was found by taking the average municipal bonds raised by a county over the last five years, then dividing by the population. Scores were given for every county in our study on these four factors, weighting each factor equally. SmartAsset then combined those scores to create a final ranking of cities. Lastly, an index was created where the county with the most incoming investments was assigned a value of 100 and the county with the least investment activity received a zero.
Sources: U.S. Census Bureau County Business Patterns Survey, U.S. Bureau Economic Analysis, U.S. Census Bureau Building Permits Survey, Bloomberg