The Great Recession and Nonmetropolitan America

Abstract

The influence of the housing market on U.S. business cycle dynamics during the previous decade has been well documented. Yet, little if anything is known about how nonmetropolitan areas fared. This study examines the association of regional housing market bubbles with relative nonmetropolitan economic performance during the business cycle phases of the decade. Among the primary findings, the study establishes the association of natural amenity attractiveness with nonmetropolitan housing market bubbles and growth during the expansion phase. During the Great Recession, industry composition best explained the pattern of employment declines and natural population growth differences best explained the variation of population growth, with amenity attractiveness waning in importance.