If the 2010s’ business culture was about consolidation in metropolises like New York City, Los Angeles and the San Francisco Bay, the ‘20s are all about spreading out, often due to being priced out. What started as a response to lockdowns has ended up being a cultural and geographic shift.
Gen Z is moving to the South — understandable with average one-bedroom rent sitting at $4,333 in New York and $3,200 in LA — and so are the companies they want to work for. Plenty of midsize cities offer booming economies and peace-of-mind perks.
Here’s where entrepreneurs can get a jump on that action, and why they might want to consider it.
Miami: Tech Startups
While venture capital in Silicon Valley is dipping, the Kauffman Index calls Miami the most entrepreneurial city in the U.S. Even giants like Microsoft and Softbank are soaking up the sun in the home of South Beach, with the latter offering $100 million to Miami-based startups via its Latin America Fund.
St. Louis: Education Services
With a cost of living that inspired the Penny Hoarder to name it a haven for millennials, St. Louis is a boomtown for education-adjacent businesses
. Case in point: The city has no less than 10 regional community colleges. The University of Missouri alone generates $547.2 million for the local economy.
Nashville: Direct-to-Consumer Brands
Nashville’s location means you can offer one-day shipping to 75% of the continental U.S. There’s still plenty of room for DTC in the Music City. And the rent is about half of what you’d pay in LA.
Houston: Food
It’s no wonder Travel and Leisure named Houston the fifth-best food city in America. While 53% of restaurateurs had to raise their prices in 2023, only 31% in Houston felt the need to do so.
Need more convincing to bust out of the 350-square-foot box you call home and swap it for a place with a front yard? Check out our infographic below.