Northeast U.S. no longer leads in contributing to nation’s GDP in the South.

The South Emerges as the New Economic Powerhouse

As Americans sought refuge from the restrictive social policies of the Northeast United States during the coronavirus pandemic, a remarkable shift occurred. The South, once overshadowed by its northern counterparts, rose to prominence as the leader in contributing to the national GDP.

According to Bloomberg, states like Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas have surpassed the economic prowess of cities like Boston, New York City, and Washington D.C. The Southeast region experienced a population growth of 2.2 million people in just two years.

“You feel very wanted, right?’’ Chief Financial Officer Bryan Hipsher of the famed financial information firm Dun & Bradstreet, which moved from New Jersey to Jacksonville, Florida, said. “You feel very welcomed, clearly.”

Economist Mark Vitner captures the essence of this transformation, stating, “You could throw a dart anywhere at a map of the South and hit somewhere booming.”

JPMorgan Chase & Co. CEO Jamie Dimon expressed his surprise at the shift, saying, “We now have more employees in Texas than New York state. It shouldn’t have been that way,” in an interview with Bloomberg.

The statistics are staggering: the Southeast gained approximately $100 billion in new income in 2020 and 2021, while the Northeast suffered a loss of around $60 billion, as revealed by an analysis of recently published Internal Revenue Service data. Since the onset of the pandemic in early 2020, two-thirds of all job growth has occurred in the Southeast, which is now home to 9 of the 15 fastest-growing American large cities.

The Jacksonville branch of the Mayo Clinic alone added 2,400 employees last year.

According to Pricewaterhouse Coopers, the top seven American cities for real estate investing are Nashville, Dallas/Fort Worth (the nation’s fastest-growing big city), Atlanta, Austin, Tampa/St. Petersburg, Raleigh/Durham, and Miami. In fact, the U.S. Census Bureau reported that nine of the nation’s 15 fastest-growing cities in 2022 were located in the South.

In 2022, while the Northeast and Midwest experienced population decline, the West only managed to add 153,000 people. Fast Company reported that the West would have lost population if not for immigrants and births outpacing deaths.

Over the past 50 years, the Southeast has gained significant political influence. Twelve states in the region have added 33 seats in the House of Representatives, while the Northeast and Midwest have lost nearly the same number of seats.

Bloomberg Government estimates that 11 of the 21 most important committees in the House are now chaired by members from the South.

In 2022, GOP Governors Ron DeSantis of Florida, Greg Abbott of Texas, and Brian Kemp secured resounding reelection victories, further solidifying the South’s growing influence.

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