What Is a Metropolitan Statistical Area (MSA)?
Let me explain what a Metropolitan Statistical Area, or MSA, really is. These areas are delineated by the U.S. Office of Management and Budget (OMB) and must include at least one urbanized area with a population of at least 50,000.
Key Takeaways
You should know that MSAs are set by the OMB with that minimum urban population threshold. Think of an MSA as the official way to define a region around a city, including surrounding communities connected through social and economic ties. These areas help group counties and cities for things like population censuses and gathering related stats.
Understanding Metropolitan Statistical Areas (MSAs)
An MSA, which used to be called a standard metropolitan statistical area or SMSA, is basically the formal label for a region with a city and its linked surrounding communities, all tied together by social and economic factors, as decided by the OMB.
These MSAs group counties and cities into specific geographic zones for censuses and data compilation. Today's MSAs are set up to cover contiguous areas with high population density.
Typically, an MSA has a core city with a big population and the region around it, possibly including nearby counties. What marks these areas is the strong social and economic interactions—people in rural outskirts might drive long distances to the urban center for work, shopping, or events.
As of July 2024, according to OMB Bulletin No. 23-01, there are 393 such areas designated as MSAs in the U.S. and Puerto Rico—387 in the States and six in Puerto Rico.
Unlike micropolitan statistical areas, which focus on smaller towns with 10,000 to 50,000 people, MSAs require a city of at least 50,000. Some MSAs, like Dallas-Fort Worth-Arlington, have multiple cities over 50,000. The biggest in the U.S., New York-Newark-Jersey City, even spans parts of New York, New Jersey, and Pennsylvania.
MSA Data Uses
The Bureau of Labor Statistics uses MSA data to look at labor market conditions in a given area. In an MSA, workers can switch jobs without relocating, which keeps the labor force pretty stable.
This data also lets government officials and businesses check per capita income, spending habits, and unemployment rates. From there, they can create policies to boost economic growth in the region.
Take the Atlanta-Sandy Springs-Alpharetta MSA—it's the most populous in Georgia and heavily influences the region's economy. If you're a company thinking about moving there or starting up, you can use MSA stats to gauge if your business will thrive.
Real estate investors rely on MSA data for housing trends and population shifts. Plus, if you're applying for social services, you might need to show your income is below a certain percentage of the MSA's median gross income to qualify for things like low-income housing.
What Size Is a Metropolitan Statistical Area?
An MSA includes a location with at least one urbanized area and a total population of at least 50,000 people.
What Is the Difference Between MSA and CSA?
An MSA is an area with at least one urbanized spot and 50,000 people, including the core and adjacent counties with strong social and economic links to it. A Combined Statistical Area, or CSA, combines two or more MSAs or micropolitan areas where employment interchange is at least 15— that's the sum of the percentage of workers from the smaller area working in the larger one, plus the percentage of jobs in the smaller area filled by residents of the larger one.
What Is the Largest Metro Area in the World?
Tokyo holds that title, with a metropolitan population of 36.5 million.
The Bottom Line
In the end, an MSA is set by the OMB as a place with at least one urbanized area and 50,000 people, usually a city and its surrounding linked areas. These help organize counties and cities for census and data purposes.
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