What Is an 18-Hour City?
As someone who's followed real estate trends, I can tell you that economists and investors define an 18-hour city as a mid-sized urban area with strong amenities, above-average population growth, and costs for living and business that are notably lower than those in the largest cities. These places usually have populations under one million, positioning them as second-tier cities.
In the U.S., these 18-hour cities are gaining traction as practical options for investment and residence, stepping in as alternatives to the dominant Big Six markets—Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C.—which are known as 24-hour cities.
Understanding the 18-Hour City
Let me explain this term more directly: an 18-hour city typically means a place where public services, amenities, and job prospects match the quality found in those Big Six markets. These cities are lively smaller metros that draw in new residents, entrepreneurs, and investors. They come with lower living expenses, reliable infrastructure, and desirable amenities. Many serve as solid choices for launching or moving a business or putting money into real estate.
Unlike the biggest cities, their services and amenities aren't running around the clock. Still, they hold up with strong public transit, up-to-date infrastructure, and robust economies. Housing costs stay reasonable by comparison.
The 18-Hour City Advantage
If you're considering where to invest or relocate, know that 18-hour cities stand out as appealing alternatives to major urban centers for starting a business, shifting an existing one, or buying property. They often show lower capitalization rate compression, which keeps property values steady without wild swings.
Similar to first-tier cities, these places have low real estate vacancy rates, good supply levels, growing rents, and strong absorption rates—all signs pointing to solid long-term investment value. Beyond the data, a unique culture plays a big role in their appeal, as noted by sources like Forbes: think Austin as the live music hub, Denver and the Research Triangle for outdoor pursuits, or Portland's proudly eccentric vibe.
One thing to watch for is the higher risk, since these cities lack the long-established history of primary markets.
Examples of 18-Hour Cities in the U.S.
From what I've seen in real estate platforms like CrowdStreet, standouts include Austin, Denver, and Nashville as recent successes, with Charleston, South Carolina, pegged as an up-and-comer in 2020. Realtor.com's top picks for 2020 and later were all in this category: Boise, Idaho; McAllen-Edinburg-Mission, Texas; Tucson, Arizona; Chattanooga, Tennessee; and Columbia, South Carolina.
The National Real Estate Investor highlighted Charleston, Kansas City, and Columbus, Ohio, for their impressive job growth.
Follow the Millennials
These 18-hour city stars are magnets for millennials aiming to build or boost their careers, offering recreation and entertainment that go far beyond standard second-tier options. Employers flock here because business costs are lower, which in turn pulls in job seekers and startups. Remember, these places appeal especially to younger crowds frustrated by big-city hurdles.
Key Takeaways
- Eighteen-hour cities are vibrant smaller metro areas that are proving attractive to new residents, entrepreneurs and investors.
- They boast lower living costs along with solid infrastructure and appealing amenities.
- Many have emerged as alternatives to big cities for starting or relocating a business or investing in real estate.
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