Omaha leads U.S. in recovery

When it comes to riding out the Great Recession, we're No. 1.

Forbes on Thursday put Omaha-Council Bluffs at the top of its list of the nation's fastest-recovering major metropolitan areas. Magazine editors said the area's diverse economy, stable housing prices and low unemployment helped it rate the best in their study of the 100 largest metro areas.

“Though Omaha, Neb., seems second-rate to some, Warren Buffett may have been on to something when he chose it for the headquarters of his massive holding company, Berkshire Hathaway,'' says the article published on Forbes.com.

“According to our research, the city has hit upon a formula to weather the economic downturn better than any other in the country.''

Of course, no city has been immune from economic downturn. Like every other city, Omaha has shed thousands of jobs. But Omaha didn't really begin feeling the downturn until last fall, almost a year after the rest of the country, and it has not been as deeply affected.

The Forbes study is consistent with a Brookings Institution study that ranked the Omaha metro area 10th among those least hit by the recession. Another study by Moody's had Omaha and Lincoln among the first metropolitan areas moving into recovery. Forbes appears to rank Omaha higher than Brookings does because Forbes relies more heavily on housing measures.

Omaha ranks well in foreclosures, stability of housing prices and home sales rate.

The studies also included gross metropolitan product, a measure of productivity, and unemployment rate. Forbes said Omaha's low unemployment rate is the main reason “it sails to the top of our list.”

Said Forbes: “Omaha's economy is less dependent on manufacturing than other Midwestern cities, and is boosted by a strong agriculture sector and growing biofuels industry. And while the city has a big stake in the financial industry ... it doesn't specialize in the types of institutions that took big risks and chased exotic financial structures. Instead, it's home to roughly 30 insurance companies and regional banks like Mutual of Omaha.”

Omaha; San Antonio; Austin, Texas; Pittsburgh; and Harrisburg, Pa., held Forbes' top five spots. Des Moines, which ranked 13th in the Brookings study, came in 39th in the Forbes study. Detroit and four Florida metro areas ranked last.

Forbes said there is a lesson to be learned from top-ranked cities: “Rather than chasing rising home prices or apparently plentiful jobs in one-industry towns, families looking for long-term economic stability should seek spots where industry is diverse and housing price shifts are benign.''

Contact the writer:

444-1130, henry.cordes@owh.com

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