Fastest-Growing Small Towns

Despite the Great Recession, these places have seen populations pop.

There are certain fields that seem immune to recessionary woes. One is education. Another is sports. And of course, there's the military.

Fairbanks, Alaska

Fairbanks, Alaska, relies particularly on the last one. Home to the Fort Wainwright and Eielson military bases, median family income in Fairbanks for 2009 was $87,239 and the unemployment rate was just 6.5%, well below the national average of 9.2% for 2009.
Maybe that's why the area's population jumped 13.7% between 2006 and 2009, making Fairbanks the fastest-growing small town in America.
To determine which small American towns are growing fastest, we used census data calculating the population growth rate between 2006 and 2009 for every town with fewer than 100,000 people.
In Pictures: Fastest-Growing Small Towns Some surprising findings: Despite the state of Florida's catastrophic real estate bust, certain communities in the state are still flourishing. The Villages, Fla., a haven for retirees, saw its population increase by 13% to 77,681 in 2009. And while Palm Coast, Fla., isn't a retirement community, the housing bust didn't slow it down. The area, which is home to several mid-size businesses, has seen its population grow rapidly since 1990, and it's still going strong. From 2006 to 2009 Palm Coast's population grew 10.3% to 91,622.

Bozeman, Montana

Then there's Lincolnton, N.C., an old textile town northwest of Charlotte. Despite Charlotte's high unemployment rate--10.4%--people continue to move to this particular town. The population rose by 5.8% to 76,043 in 2009. Why? The area bills itself as a place with "small-town taxes, big-city transportation network." In fact, Lincolnton is close to Charlotte's airport, and property taxes are tiny. Residents pay just $570 in annual taxes on a property valued at $100,000. But don't come to Lincolnton to get a job. The unemployment rate in Lincoln County, according to the Lincoln Economic Development Association, is 14.1%.

The Villages,Florida

Yet according to John Connaughton, Babson Capital Professor of financial economics at UNC Charlotte's Belk College of Business, Lincolnton has two critical things going for it: a new highway and Nascar racing. "There is a very large industry in this area building race cars," says Connaughton. "Top series teams are located in the area, as well as backup series, and manufacturing and team shops are located here. And there are 400 to 500 other firms that provide car parts."

Ames, Iowa

What's more, Lincolnton recently got a new highway--U.S. 321--which connects to I-85. That new four-lane, divided road has made Lincolnton a convenient spot for those who need to quickly get around the area.
So sometimes the growth of a town has to do with geography, jobs or resources. And other times it's about racecars.

Top 5 Fastest-Growing Small Towns

No. 1. Fairbanks, Alaska (Metro Area)
2009 Population: 98,660
2006 Population: 86,754
Growth: 13.8%
No. 2. The Villages, Fla. (Micro Area)
2009 Population: 77,681
2006 Population: 68,769
Growth: 13.0%
No. 3. Bozeman, Mont. (Micro Area)
2009 Population: 90,343
2006 Population: 81,763
Growth: 10.5%
No. 4. Palm Coast, Fla. (Metro Area)
2009 Population: 91,622
2006 Population: 83,084
Growth: 10.3%
No. 5. Ames, Iowa (Metro Area)
2009 Population: 87,214
2006 Population: 80,145
Growth: 8.8%
Click here to see the full list of the Fastest-Growing Small Towns