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Summary of metropolitan economies for 1989; the most growth was seen in the 'edge cities', where cattle once grazed.

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In this year's ranking of metropolitan economies, growth is in the 'edge cities'

This year's Metro Report reflects the old saw that the more things change, the more they stay the same. Those areas at the top of the list -- #1 Manchester-Nashua, N.H., #2 Orlando, and #3 West Palm Beach, Fla. -- are becoming "usual suspects" in our annual surveys of fastest-growing regions. And at the bottom of the list, past losers reappear -- such hard-hit Oil Patch towns as #184 Oklahoma City, #189 Shreveport, La., and #191 Odessa-Midland, Tex.

There are some patterns among the big gainers. One amusing note is the resurgence of gambling towns across the country. The three gaming cities all shot sevens this year -- #31 Reno, Nev., up from #73, #46 Atlantic City, N.J., up from #118, and Las Vegas, which rose from a respectable #27 to this year's #6.

But Las Vegas's rise, in particular, stems from something far more important than the appeal of easy money. As part of a greater trend, the U.S. economy is moving to places where, only a few years ago, cattle grazed or cactus grew. From New England to southern California, entrepreneurs are clustering in suburban subdivisions and satellite cities rather than in the teeming traditional downtowns.

"America is going through the biggest change in urban life in more than 100 years," notes Joel Garreau, a senior writer on urban affairs at The Washington Post. "Instead of simply living out in the suburbs and working in the city, where he has to deal with crime and drugs, the entrepreneur now goes out and builds his business where he lives."

With its relatively small center city and its numerous, expanding suburban clusters, Los Angeles (#59) epitomizes Garreau's concept of the "edge city." It challenges megalopolitan rivals New York City (#108) and Chicago (#119) with its diverse and vital entrepreneurial economy (see "I Love L.A.," March 1989, [Article link]). More impressive still has been the growth in Los Angeles's numerous satellite towns, such as Anaheim (#8), Riverside-San Bernadino (#12), and Ventura (#27), all of which have become significant economic regions in their own right.

This edge-city pattern is not restricted to southern California, however. Some of the fastest-growing major metropolitan areas on our 1989 list -- Orlando (#2), Washington, D.C. (#5), and Atlanta (#7) -- mirror the Los Angeles pattern. Much of their new growth takes place in suburban, industrial, and business districts. In the booming Washington area, for instance, once sleepy Tysons, Va., has grown into a city with the largest downtown in the state, and nearby Rockville-Gaithersburg, Md., now boasts more office space than downtown Baltimore. These emerging cities rely on the automobile, and their populations swell during the day with numerous commuters.

Top cities on our list that have developed as satellites of a larger dynamic region include Manchester-Nashua and Portsmouth (#9), N.H. They are essentially edge cities of Boston (#53), itself a vigorous metropolitan area.

These edge cities tend to be located close to excellent highways and major airports, facilities as important today as railroad hubs were to the core cities of the last century. Good schools, low crime rates, the availability of housing, and business-oriented local governments also contribute to the suburban appeal.

Another, perhaps less obvious, lure may lie in the basically unsettled nature of life on the suburban edge. "It's a place where the whole culture is 'Fix it first and deal with the consequences later,' " points out Garreau. "The people who like the status quo stay downtown where the old elites are. People who are out there redefining themselves, like entrepreneurs, are attracted to places that are new, where things are more flexible."

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METRO RANKING

1989 Rank/Area/1988 Rank

1. Manchester-Nashua, NH (2)

2. Orlando, FL (3)

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