Metropolitan Area Cost Competitiveness, Growth and Real Estate Performance

  • April 3, 1995
  • • Written by: William D. Anderson Kenneth M. Lusht

April 1995, Vol 20, No 1

Abstract: In this article, the authors rank metropolitan areas on several measures of cost competitiveness and relate past rankings to real estate investment performance. The results indicate a familiar regional salant, with the Southwest and the South continuing to offer the most cost competitive business environments. While prior research suggests low cost is a reliable predictor of metropolitan growth, this does not necessarily translate into attractive investment opportunities. However, in the current market, it appears there is time to take advantage of the low cost/growth relationship.