.svg)
Las Vegas has long been a tourism mecca, attracting domestic and international travelers eager to partake of the city’s iconic offerings. However, as economic uncertainty weighs heavily on many would-be vacationers' minds, visits to the city have slowed. We examined H1 2025 data for the city and its legendary Las Vegas Strip (just outside the city limits) to see how domestic tourism slowdowns are impacting the city.
Las Vegas, with its iconic vistas, casinos, entertainment options, and convention centers, has long been a favorite domestic tourism destination. But travel patterns have slowed nationwide, and the downturn hasn’t spared the Entertainment Capital of the World. Foot traffic data for out-of-market domestic visitors to Vegas – defined here as those coming from at least 50 miles away – shows a notable decline in tourist visits to the city.
Visits to the city of Las Vegas have dropped consistently since the pandemic, hitting a low in Q1 2025 when out-of-market traffic fell 4.0% YoY. The Las Vegas Strip, which hosts most of the area’s marquee attractions and drives substantial revenue, fared even worse with a 10.6% YoY decline in Q1.
Still, visits to both the city and the Strip picked up somewhat in Las Vegas’ traditionally stronger Q2, a positive sign for the city and perhaps an indication of better things to come.
Economic uncertainties are likely one of the main reasons for the slowing visits to Las Vegas. And analyzing median household income (HHI) data for the areas supplying out-of-market visitors to the city highlights the economic pressures at play.
In Q2 2019, both the city of Las Vegas and the Strip drew visitors from areas with median HHIs of about $83.0K, with only a slight gap in favor of the Strip. But since then, median HHI trends have shifted, with Las Vegas seeing a subtle but steady rise in median HHI to $88.8K, and the Strip seeing a much more substantial increase to $99.4K.
The steeper climb in median HHI for the Strip’s visits, coupled with its larger visit gaps, suggests that as prices for tourist attractions climb, more budget-conscious visitors may be opting to explore beyond the Strip. Hotel and casino operators, seeing spending on leisure activities soften, are now offering steep discounts to attract additional travel. For local stakeholders, this poses both opportunities and potential downsides: While higher-income visitors may spend more, opening up ample opportunities for operators and retailers, middle-income-focused properties and storefronts face mounting risks. Developing “on-ramps” for value-conscious travelers will be critical to maintaining wide-ranging appeal and driving continued tourism growth.
The shifting profile of visitors presents Las Vegas with both challenges and opportunities. City leaders and industry stakeholders must juggle catering to a more affluent crowd while remaining accessible to budget-minded travelers. Ultimately, the city’s resilience will hinge on a balanced approach – welcoming high-rollers while ensuring that Las Vegas remains a destination for everyone.
Visit Placer.ai/anchor for the latest data-driven travel & leisure insights.
July has become a heavy hitter in the retail calendar as retailers battle for consumers' attention and spending. Promotional activity during this month is incredibly high as the industry enters the back-to-school season and debut of pre-fall collections. However, one promotional event has long held the top spot in July, with its history pre-dating Prime Day and other retailer deal day events: The Nordstrom Anniversary Sale.
The Anniversary Sale’s premise is unique compared to other promotional events across the retail calendar; most items included in the event are exclusive to Nordstrom and typically the discounts are on new releases instead of previously released mark downs. The sale has become a signal of the changing of seasons as consumers prepare their fall wardrobes. Over the years, it has provided incredible insight into the psyche of the consumer and the impact of social media influencers on the retail industry.
The annual event has undergone some major changes over the last decade. Nordstrom was quick to embrace the power of social media influencers, and the Anniversary Sale gave influencers incredible opportunities to drive conversion from themselves and the retailer, and in return, receive high commissions. It wasn’t uncommon for user generated content to skyrocket with influencers posting hauls of their Anniversary Sale finds and deals. However, the commission structure has evolved over time, and the retailer has seemingly shifted its focus away from content creators as the primary driver of consumer engagement.
This year marked the longest public Anniversary Sale, which ran from July 12th through August 3rd. (Any consumer can shop at Nordstrom during the public Anniversary sale, but Nordstrom cardmembers usually have early access to the sale, and pre-sale lengths have fluctuated over the years). This year had 23 sale days, compared to 21 in 2023 & 2024, 17 in 2019 and 2022, and 12 in 2021, which may have been impacted by pandemic induced supply chain issues.
Looking at overall visitation for the event, traffic was up 17% compared to 2024 and 15% compared to 2023, but that does account for the two extra days of the sale. On a more comparable basis, the average visits per day of the 2025 Anniversary Sale were up 7% vs. 2024 and up 5% vs. 2023, respectively, highlighting that 2025 did bring a higher volume of average visitors per day, despite the longer sale period. But average visits per day during the sale were below 2019, 2021 and 2022 levels, when influencer marketing around the event was much higher than it is today.
Still, Nordstrom has regained its footing with many consumers over the past year, and that combined with consumers' desire for value across retail may have contributed to this year’s higher volume of visits compared to the past few years.
Another interesting outcome from this year? The percentage of visits during the weekend was higher in 2025 than all previous years reviewed. The public sale did start on a Saturday this year, which could have had an impact, but it also indicates that consumers might have been looking to the sale as an event to plan their shopping around, instead of a quick stop off during the week. Beginning the sale on Saturday may have moved the needle to drum up shopper excitement and incentivize visitors to shop on the first day of the event.
Consumers of all segments are increasing their appetite for value across the retail industry, and it appears that the Anniversary Sale was primed to welcome wealthy shoppers who wanted to score this year’s trends and designers at a lower price point. According to PersonaLive consumer segmentation, 2025 saw a higher distribution of visits from Ultra Wealthy Families & Wealth Suburban Families than the previous two sale events. There may have been fewer aspirational shoppers this year as well, concentrating visits with consumers who have higher levels of disposable income.
There was also an increase in the share of visits by older consumer segments at the expense of younger shoppers, which is interesting considering potential differences in consumer sentiment between generations and less emphasis on marketing the sale through social media.
Overall, the success of this year’s Anniversary Sale from a visitation perspective is encouraging, as many retailers contend with rising prices and waning consumer demand for discretionary goods. The strong visitation trends during the early back-to-school period highlight the brand value and positive consumer perception that the retailer has successfully cultivated in recent years. Nordstrom has found the formula to engage and retain shoppers, and it’s no wonder that we selected it as a Ten Top Brand to Watch for 2025.
Retailers have to be more creative to drive consumer activity in-store for the remainder of the year, but exclusivity might just be the key to success as evidenced by the Anniversary Sale performance.
To see up-to-date retail traffic trends, visit our free tools.
In June and July 2025, visits to Placer’s Industrial Manufacturing Composite Index grew 3.0% and 2.3% year over year (YoY), respectively, as supply chains raced against the clock to build inventory in advance of the new tariffs set to come into effect on August 7th. But as the deadline approached, YoY visits to these sites by employees and logistics partners began to decline, dropping to 4.2% YoY during the week of August 11th, 2025.
The timing of this decline, occurring just days after tariff implementation, points to manufacturers potentially working through stockpiled inventory and reassessing supply chain strategies under the new cost structure. While it's still early to determine whether this represents a temporary recalibration or the beginning of a more sustained slowdown, the data suggests that the manufacturing sector is entering a period of adjustment as businesses adapt to the new tariff environment.
Bath & Body Works emerged as a surprise retail winner in February 2025’s Placer 100 roundup, when overall visits to the chain jumped by 13.7% YoY in conjunction with its Disney-themed fragrance release. And the chain is maintaining its relevance in the face of declining discretionary spending and tighter consumer budgets through a multi-pronged approach, including store expansions, a TikTok presence, and partnerships with influencers.
Still, traffic to the chain reflects the impact of softened discretionary spending. Although overall traffic increased 3.5% in Q2 2025 compared to Q2 2024, thanks in part to the chain's strategic expansion, same-store visits for the quarter fell slightly, as seen in the chart below. But foot traffic rebounded dramatically in July, when its semi-annual sale sent same-store visits up by 12.7% and overall visits up by 17.5%, highlighting how compelling promotions – especially when consumer budgets are tight – can lead to foot traffic spikes.
Visit Placer.ai/anchor for the latest data-driven retail insights.
The beauty industry continues to flourish, with external factors like the rise of #BeautyTok, the influence of online creators, and a steady stream of new products driving interest. Within this landscape, Ulta (ULTA) has been driving strong sales, capitalizing on continued interest in beauty to fuel this growth.
Following major gains through the pandemic years and beyond, Ulta's visits have flattened slightly. In Q2 2025, overall visits to the chain grew by 1.4% year over year (YoY), likely thanks to store openings (Ulta opened 62 new stores between Q1 2024 and Q1 2025), as same-store visits declined by 1.1% in the same period.
Despite softer same-store foot traffic as seen in the chart below, Ulta delivered strong comp sales growth of 2.9% last quarter, driven by a 2.3% rise in average ticket size and a 10.0% increase in e-commerce sales. Now, the chain seems to be entering a new phase of its story, choosing to wind down its Target partnership in favor of its Ulta Beauty Unleashed growth plan.
As Ulta’s growth momentum slows, its decision not to renew its six-year partnership with Target may be a strategic move to direct traffic to its growing store fleet.
The partnership launched in 2021 with the goals of making prestige beauty more accessible to Target shoppers while helping Ulta "deepen loyalty with existing guests and introduce Ulta Beauty to new guests." And, at least for Ulta, the strategy seems to have worked – the share of Target shoppers also visiting Ulta stores has increased significantly since the launch, as seen in the chart below. This suggests that the Ulta shop-in-shops helped the chain acquire new customers through the brand exposure generated by the partnership.
But the data also suggests that the benefits to Ulta may be diminishing. Since 2023, the share of Target shoppers also visiting Ulta appears to have plateaued around 30%, indicating that the shop-in-shops are no longer driving meaningful traffic to stand-alone Ulta stores. Meanwhile, Ulta now has a larger store fleet than it did in 2021 (the company opened approximately 150 new stores between Q2 2021 and Q1 2025). This expansion likely also contributed to increased cross-visitation while reducing the partnership's value proposition, as beauty consumers now have more opportunities to visit standalone Ulta stores. With the partnership's customer acquisition benefits plateauing and Ulta's expanded footprint reducing reliance on Target's locations, ending the collaboration appears to be a logical step toward maximizing traffic to Ulta's own stores.
Now, both brands have new opportunities to focus on their relative strengths. For Ulta, that means building out its Ulta Beauty Unleashed program, which will see the brand focus on improving store operations, enhancing the digital experience, and moving into new markets. Meanwhile, incoming Target CEO Michael Fiddelke plans to take the company back to its roots, focusing on its own merchandise and using technology to improve efficiency.
As Ulta transitions away from its Target partnership and focuses on its Ulta Beauty Unleashed growth plan, the company is well-positioned to capitalize on expanding store operations, enhanced digital experiences, and entry into new markets.
For the latest data-driven retail insights, visit Placer.ai/anchor.
Dollar General and Dollar Tree have grown significantly in recent years, upending the competitive dynamics in the wider retail landscape. Can these chains continue to grow? Or are they beginning to reach their saturation point? We dove into the data to find out.
Dollar Tree recently completed the sale of the Family Dollar brand, allowing management to dedicate its efforts to "Dollar Tree's long-term growth, profitability and returns on capital."
The strategic refocus appears to be already paying off. As the chart below shows, year-over-year (YoY) overall and same-store visits to the chain have surged in recent months, indicating strong organic performance amplified by fleet expansion.
Meanwhile, Dollar General is also experiencing traffic growth – though momentum has cooled slightly. After posting a robust 12.2% visit increase between July 2023 and July 2024, growth has decelerated to 2.9% year-over-year in July 2025.
Still, although Dollar General's growth has slowed while Dollar Tree's growth has picked up, Dollar General remains the significantly larger chain. In H1 2025, 58.7% of combined visits to the two retailers went to Dollar General, compared to 41.3% of visits to Dollar Tree. And just because Dollar General's growth has slowed somewhat does not mean that the company has reached its saturation point.
Even though both chains have been growing for several years, geographic data reveals that domestic expansion opportunities for both retailers still exist.
The map below shows the share of combined visits to Dollar General and Dollar Tree going to each chain by DMA. Dollar Tree receives a majority of visits in the yellow DMAs, which are heavily concentrated in the Western United States. In contrast, Dollar General receives the majority of visits in the purple DMAs which cover most of the Midwest and South.
This distinct geographic segmentation indicates that rather than competing head-to-head, each chain has built regional strongholds – creating significant white space opportunities for cross-regional expansion. Dollar Tree's renewed focus and accelerating traffic position it well to build up its position in the South and Midwest – Dollar General's traditional markets. Conversely, Dollar General's established operational scale and proven rural market penetration strategy could drive significant growth for the chain in Dollar Tree's Western strongholds.
Dollar Tree’s sharpened focus and accelerating traffic growth signal strong long-term potential, while Dollar General’s scale ensures it remains a formidable player despite cooling momentum. With distinct geographic strongholds, both retailers still have significant white space for expansion – setting the stage for continued growth rather than saturation.
For the most up-to-date superstore visit data, check out Placer.ai's free tools.
New York City is one of the world’s leading commercial centers – and Manhattan, home to some of the nation's most prominent corporations, is at its epicenter. Manhattan’s substantial in-office workforce has helped make New York a post-pandemic office recovery leader, outpacing most other major U.S. hubs. And the plethora of healthcare, service, and other on-site workers that keep the island humming along also contribute to its thriving employment landscape.
Using the latest location analytics, this report examines the shifting dynamics of the many on-site workers employed in Manhattan and the up-and-coming Hudson Yards neighborhood. Where does today’s Manhattan workforce come from? How often do on-site employees visit Hudson Yards? And how has the share of young professionals across Manhattan’s different districts shifted since the pandemic?
Read on to find out.
The rise in work-from-home (WFH) trends during the pandemic and the persistence of hybrid work have changed the face of commuting in Manhattan.
In Q2 2019, nearly 60% of employee visits to Manhattan originated off the island. But in Q2 2021, that share fell to just 43.9% – likely due to many commuters avoiding public transportation and practicing social distancing during COVID.
Since Q2 2022, however, the share of employee visits to Manhattan from outside the borough has rebounded – steadily approaching, but not yet reaching, pre-pandemic levels. By Q2 2024, 54.7% of employee visits to Manhattan originated from elsewhere – likely a reflection of the Big Apple’s accelerated RTO that is drawing in-office workers back into the city.
Unsurprisingly, some nearby boroughs – including Queens and the Bronx – have seen their share of Manhattan worker visits bounce back to what they were in 2019, while further-away areas of New York and New Jersey continue to lag behind. But Q2 2024 also saw an increase in the share of Manhattan workers commuting from other states – both compared to 2023 and compared to 2019 – perhaps reflecting the rise of super commuting.
Commuting into Manhattan is on the rise – but how often are employees making the trip? Diving into the data for employees based in Hudson Yards – Manhattan’s newest retail, office, and residential hub, which was officially opened to the public in March 2019 – reveals that the local workforce favors fewer in-person work days than in the past.
In August 2019, before the pandemic, 60.2% of Hudson Yards-based employees visited the neighborhood at least fifteen times. But by August 2021, the neighborhood’s share of near-full-time on-site workers had begun to drop – and it has declined ever since. In August 2024, only 22.6% of local workers visited the neighborhood 15+ times throughout the month. Meanwhile, the share of Hudson Yards-based employees making an appearance between five and nine times during the month emerged as the most common visit frequency by August 2022 – and has continued to increase since. In August 2024, 25.0% of employees visited the neighborhood less than five times a month, 32.5% visited between five and nine times, and 19.2% visited between 10 and 14 times.
Like other workers throughout Manhattan, Hudson Yards employees seem to have fully embraced the new hybrid normal – coming into the office between one and four times a week.
But not all employment centers in the Hudson Yards neighborhood see the same patterns of on-site work. Some of the newest office buildings in the area appear to attract employees more frequently and from further away than other properties.
Of the Hudson Yards properties analyzed, Two Manhattan West, which was completed this year, attracted the largest share of frequent, long-distance commuters in August 2024 (15.3%) – defined as employees visiting 10+ times per month from at least 30 miles away. And The Spiral, which opened last year, drew the second-largest share of such on-site workers (12.3%).
Employees in these skyscrapers may prioritize in-person work – or have been encouraged by their employers to return to the office – more than their counterparts in other Hudson Yards buildings. Employees may also choose to come in more frequently to enjoy these properties’ newer and more advanced amenities. And service and shift workers at these properties may also be coming in more frequently to support the buildings’ elevated occupancy.
Diving deeper into the segmentation of on-site employees in the Hudson Yards district provides further insight into this unique on-site workforce.
Analysis of POIs corresponding to several commercial and office hubs in the borough reveals that between August 2019 and August 2024, Hudson Yards’ captured market had the fastest-growing share of employees belonging to STI: Landscape's “Apprentices” segment, which encompasses young, highly-paid professionals in urban settings.
Companies looking to attract young talent have already noticed that these young professionals are receptive to Hudson Yards’ vibrant atmosphere and collaborative spaces, and describe this as a key factor in their choice to lease local offices.
Manhattan is a bastion of commerce, and its strong on-site workforce has helped lead the nation’s post-pandemic office recovery. But the dynamics of the many Manhattan-based workers continues to shift. And as new commercial and residential hubs emerge on the island, workplace trends and the characteristics of employees are almost certain to evolve with them.
The restaurant space has experienced its fair share of challenges in recent years – from pandemic-related closures to rising labor and ingredient costs. Despite these hurdles, the category is holding its own, with total 2024 spending projected to reach $1.1 trillion by the end of the year.
And an analysis of year-over-year (YoY) visitation trends to restaurants nationwide shows that consumers are frequenting dining establishments in growing numbers – despite food-away-from-home prices that remain stubbornly high.
Overall, monthly visits to restaurants were up nearly every month this year compared to the equivalent periods of 2023. Only in January, when inclement weather kept many consumers at home, did restaurants see a significant YoY drop. Throughout the rest of the analyzed period, YoY visits either held steady or grew – showing that Americans are finding room in their budgets to treat themselves to tasty, hassle-free meals.
Still, costs remain elevated and dining preferences have shifted, with consumers prioritizing value and convenience – and restaurants across segments are looking for ways to meet these changing needs. This white paper dives into the data to explore the trends impacting quick-service restaurants (QSR), full-service restaurants (FSR), and fast-casual dining venues – and strategies all three categories are using to stay ahead of the pack.
Overall, the dining sector has performed well in 2024, but a closer look at specific segments within the industry shows that fast-casual restaurants are outperforming both QSR and FSR chains.
Between January and August 2024, visits to fast-casual establishments were up 3.3% YoY, while QSR visits grew by just 0.7%, and FSR visits fell by 0.3% YoY. As eating out becomes more expensive, consumers are gravitating toward dining options that offer better perceived value without compromising on quality. Fast-casual chains, which balance affordability with higher-quality ingredients and experiences, have increasingly become the go-to choice for value-conscious diners.
Fast-casual restaurants also tend to attract a higher-income demographic. Between January and August 2024, fast-casual restaurants drew visitors from Census Block Groups (CBGs) with a weighted median household income of $78.2K – higher than the nationwide median of $76.1K. (The CBGs feeding visits to these restaurants, weighted to reflect the share of visits from each CBG, are collectively referred to as their captured market).
Perhaps unsurprisingly, quick-service restaurants drew visitors from much less affluent areas. But interestingly, despite their pricier offerings, full-service restaurants also drew visitors from CBGs with a median HHI below the nationwide baseline. While fast-casual restaurants likely attract office-goers and other routine diners that can afford to eat out on a more regular basis, FSR chains may serve as special occasion destinations for those with more moderate means.
Though QSR, FSR, and fast-casual spots all seek to provide strong value propositions, dining chains across segments have been forced to raise prices over the past year to offset rising food and labor costs. This next section takes a look at several chains that have succeeded in raising prices without sacrificing visit growth – to explore some of the strategies that have enabled them to thrive.
The fast-casual restaurant space attracts diners that are on the wealthier side – but some establishments cater to even higher earners. One chain of note is NYC-based burger chain Shake Shack, which features a captured market median HHI of $94.3K. In comparison, the typical fast-casual diner comes from areas with a median HHI of $78.2K.
Shake Shack emphasizes high-quality ingredients and prices its offerings accordingly. The chain, which has been expanding its footprint, strategically places its locations in affluent, upscale, and high-traffic neighborhoods – driving foot traffic that consistently surpasses other fast-casual chains. And this elevated foot traffic has continued to impress, even as Shake Shack has raised its prices by 2.5% over the past year.
Steakhouse chain Texas Roadhouse has enjoyed a positive few years, weathering the pandemic with aplomb before moving into an expansion phase. And this year, the chain ranked in the top five for service, food quality, and overall experience by the 2024 Datassential Top 500 Restaurant Chain.
Like Shake Shack, Texas Roadhouse has raised its prices over the past year – three times – while maintaining impressive visit metrics. Between January and August 2024, foot traffic to the steakhouse grew by 9.7% YoY, outpacing visits to the overall FSR segment by wide margins.
This foot traffic growth is fueled not only by expansion but also by the chain's ability to draw traffic during quieter dayparts like weekday afternoons, while at the same time capitalizing on high-traffic times like weekends. Some 27.7% of weekday visits to Texas Roadhouse take place between 3:00 PM and 6:00 PM – compared to just 18.9% for the broader FSR segment – thanks to the chain’s happy hour offerings early dining specials. And 43.3% of visits to the popular steakhouse take place on Saturdays and Sundays, when many diners are increasingly choosing to splurge on restaurant meals, compared to 38.4% for the wider category.
Though rising costs have been on everybody’s minds, summer 2024 may be best remembered as the summer of value – with many quick-service restaurants seeking to counter higher prices by embracing Limited-Time Offers (LTOs). These LTOs offered diners the opportunity to save at the register and get more bang for their buck – while boosting visits at QSR chains across the country.
Limited time offers such as discounted meals and combo offers can encourage frequent visits, and Hardee’s $5.99 "Original Bag" combo, launched in August 2024, did just that. The combo allowed diners to mix and match popular items like the Double Cheeseburger and Hand-Breaded Chicken Tender Wraps, offering both variety and affordability. And visits to the chain during the month of August 2024 were 4.9% higher than Hardee’s year-to-date (YTD) monthly visit average.
August’s LTO also drove up Hardee’s already-impressive loyalty rates. Between May and July 2024, 40.1% to 43.4% of visits came from customers who visited Hardee’s at least three times during the month, likely encouraged by Hardee’s top-ranking loyalty program. But in August, Hardee’s share of loyal visits jumped to 51.5%, highlighting just how receptive many diners are to eating out – as long as they feel they are getting their money’s worth.
McDonald’s launched its own limited-time offer in late June 2024, aimed at providing value to budget-conscious consumers. And the LTO – McDonald’s foray into this summer’s QSR value wars – was such a resounding success that the fast-food leader decided to extend the deal into December.
McDonald’s LTO drove foot traffic to restaurants nationwide. But a closer look at the chain’s regional captured markets shows that the offer resonated particularly well with “Young Urban Singles” – a segment group defined by Spatial.ai's PersonaLive dataset as young singles beginning their careers in trade jobs. McDonald's locations in states where the captured market shares of this demographic surpassed statewide averages by wider margins saw bigger visit boosts in July 2024 – and the correlation was a strong one.
For example, the share of “Young Urban Singles” in McDonald’s Massachusetts captured market was 56.0% higher than the Massachusetts statewide baseline – and the chain saw a 10.6% visit boost in July 2024, compared to the chain's statewide H1 2024 monthly average. But in Florida, where McDonald’s captured markets were over-indexed for “Young Urban Singles” by just 13% compared to the statewide average, foot traffic jumped in July 2024 by a relatively modest 7.3%.
These young, price-conscious consumers, who are receptive to spending their discretionary income on dining out, are not the sole driver of McDonald’s LTO foot traffic success. Still, the promotion’s outsize performance in areas where McDonald’s attracts higher-than-average shares of Young Urban Singles shows that the offering was well-tailored to meet the particular needs and preferences of this key demographic.
While QSR, fast-casual, and FSR chains have largely boosted foot traffic through deals and specials, reputation is another powerful way to attract diners. Restaurants that earn a coveted Michelin Star often see a surge in visits, as was the case for Causa – a Peruvian dining destination in Washington, D.C. The restaurant received its first Michelin Star in November 2023, a major milestone for Chef Carlos Delgado.
The Michelin Star elevated the restaurant's profile, drawing in affluent diners who prioritize exclusivity and are less sensitive to price increases. Since the award, Causa saw its share of the "Power Elite" segment group in its captured market increase from 24.7% to 26.6%. Diners were also more willing to travel for the opportunity to partake in the Causa experience: In the six months following the award, some 40.3% of visitors to the restaurant came from more than ten miles away, compared to just 30.3% in the six months prior.
These data points highlight the power of a Michelin Star to increase a restaurant’s draw and attract more affluent audiences – allowing it to raise prices without losing its core clientele. Wealthier diners often seek unique culinary experiences, where price is less of a concern, making these establishments more resilient to inflation than more venues that serve more price-sensitive customers.
Dining preferences continue to evolve as restaurants adapt to a rapidly changing culinary landscape. From the rise in fast-casual dining to the benefits of limited-time offers, the analyzed restaurant categories are determining how to best reach their target audiences. By staying up-to-date with what people are eating, these restaurant categories can hope to continue bringing customers through the door.
The COVID-19 pandemic – and the subsequent shift to remote work – has fundamentally redefined where and how people live and work, creating new opportunities for smaller cities to thrive.
But where are relocators going in 2024 – and what are they looking for? This post dives into the data for several CBSAs with populations ranging from 500K to 2.5 million that have seen positive net domestic migration over the past several years – where population inflow outpaces outflow. Who is moving to these hubs, and what is drawing them?
The past few years have seen a shift in where people are moving. While major metropolitan areas like New York still attract newcomers, smaller cities, which offer a balance of affordability, livability, and career opportunities, are becoming attractive alternatives for those looking to relocate.
Between July 2020 and July 2024, for example, the Austin-Round Rock-Georgetown, TX CBSA, saw net domestic migration of 3.6% – not surprising, given the city of Austin’s ranking among U.S. News and World Report’s top places to live in 2024-5. Raleigh-Cary, NC, which also made the list, experienced net population inflow of 2.6%. And other metro areas, including Fayetteville-Springdale-Rogers, AR (3.3%), Des Moines-West Des Moines, IA (1.4%), Oklahoma City, OK (1.1%), and Madison, WI (0.6%) have seen more domestic relocators moving in than out over the past four years.
All of these CBSAs have also continued to see positive net migration over the past 12 months – highlighting their continued appeal into 2024.
What is driving domestic migration to these hubs? While these metropolitan areas span various regions of the country, they share a common characteristic: They all attract residents coming, on average, from CBSAs with younger and less affluent populations.
Between July 2020 and July 2024, for example, relocators to high-income Raleigh, NC – where the median household income (HHI) stands at $84K – tended to hail from CBSAs with a significantly lower weighted median HHI ($66.9K). Similarly, those moving to Austin, TX – where the median HHI is $85.4K – tended to come from regions with a median HHI of $69.9K. This pattern suggests that these cities offer newcomers an aspirational leap in both career and financial prospects.
Moreover, most of these CBSAs are drawing residents with a younger weighted median age than that of their existing residents, reinforcing their appeal as destinations for those still establishing and growing their careers. Des Moines and Oklahoma City, in particular, saw the largest gaps between the median age of newcomers and that of the existing population.
Career opportunities and affordable housing are major drivers of migration, and data from Niche’s Neighborhood Grades suggests that these CBSAs attract newcomers due to their strong performance in both areas. All of the analyzed CBSAs had better "Jobs" and "Housing" grades compared to the regions from which people migrated. For example, Austin, Texas received the highest "Jobs" rating with an A-, while most new arrivals came from areas where the "Jobs" grade was a B.
While the other analyzed CBSAs showed smaller improvements in job ratings, the combination of improvements in both “Jobs” and “Housing” make them appealing destinations for those seeking better economic opportunities and affordability.
Young professionals may be more open than ever to living in smaller metro areas, offering opportunities for cities like Austin and Raleigh to thrive. And the demographic analysis of newcomers to these CBSAs underscores their appeal to individuals seeking job opportunities and upward mobility.
Will these CBSAs continue to attract newcomers and cement their status as vibrant, opportunity-rich hubs for young professionals? And how will this new mix of population impact these growing markets?
Visit Placer.ai to keep up with the latest data-driven civic news.
