A gold rush, a city’s ability to attract foreign investment and the ability to quickly expand, can boost the economy.
The US is the gold-rush capital of the world, but its success depends largely on the amount of money that can be brought into the city.
Here are five cities that are currently vying for the title.
San Francisco A decade ago, San Francisco was the gold mine of the US.
With its massive, skyscraper-lined downtown and sprawling waterfront, the city has become the poster child for a booming tech economy.
But the economy is also being affected by the city’s high cost of living.
The median house price in San Francisco is $1.5m, according to Zillow.
“People have had to look elsewhere for their financial security, and it’s becoming more difficult for them to live here,” says Alex Wylie, an associate professor at the City University of New York.
San Franciscans are also less likely to move here for work, according a recent survey by the Pew Research Center.
The city’s housing affordability crisis has seen its population plunge by almost 30% over the past two decades.
In 2019, the median household income in San Francis city was just $56,000, according the US Census Bureau.
While the city may be experiencing an economic boom, many are worried about its future.
“San Francisco is like an island.
The economic boom is happening here but the city is struggling,” says Daniel Tull, who works as a community organizer in San Fransisco.
San Franisco is also the second-highest-earning city in the US, after Los Angeles.
With the median income in the city at just over $80,000 a year, it has been the site of one of the largest tech-related protests in recent years.
“It’s really hard for a city like San Francisco to have a tech boom, because we’re not just a big tech city but a tech town, too,” says Tull.
The influx of foreign capital, along with the city government’s efforts to help the economy, have been key factors in the boom.
SanFrancisco’s economy is expected to grow by nearly 1.4% in 2019, according an estimate by Moody’s Analytics.
The economy is currently producing about $1bn in net exports per day, according Moody’s.
That’s a major part of the citys revenue.
“The San Francisco tech economy is in the midst of a new wave, and the economy of Silicon Valley is in a tailspin,” said Moody’s analyst Scott Stump.
But there are some bright spots.
While many in the community are concerned about the city going backwards, the region is experiencing its biggest economic turnaround in decades.
“We have a lot of things that are happening right now that are really positive for the region,” says Stump, adding that he believes the region will grow at a faster rate than in previous years.
In 2018, SanFrancis GDP grew by 6.7% year-on-year, according data from the US Bureau of Labor Statistics.
This was the biggest annual growth rate in the region, outpacing Silicon Valley’s 5.3%.
In 2020, San Franciscos GDP was expected to expand by 8.2%, according to Moody’s data.
In 2021, the growth is expected increase to 10.1%, the highest rate in California history.
The region is also benefiting from the fact that the federal government is taking a much more hands-on role in San Franiscans economy.
Since 2015, the federal Housing and Urban Development Agency (HUD) has provided billions of dollars in funding for public housing, as well as grants to other cities and states.
“I think it’s going to be a great time for the city to grow,” said San Francisco Mayor Ed Lee.
In 2017, San Franis economic growth rate was 6.2% and the federal aid was $3bn.
This year, the unemployment rate is just 6.9%.
“If you look at the job market, the economy really did boom.
And we’ve seen that we’re just getting started.
So it’s really a great opportunity for the next decade,” says Wylies.
But in many ways, SanFraniscans prosperity will continue to be dependent on the city getting the most out of the booming tech industry.
San Fran is home to the largest amount of tech companies in the country, but the tech industry is also booming in the other major city of San Francisco, Palo Alto.
In the city, the tech sector employs roughly 30,000 people, according Bloomberg.
The state of California has given the city more than $2bn in aid over the last few years.
But while San Fran was one of San Mateo County’s biggest tech hubs, the county is struggling to attract talent and is also struggling with the state of its finances.
“In San Francisco there’s no room for new investment,” said David Kohn,