New analysis from Daniel Berger of Thomson Reuters Municipal Market Data suggests that greater levels of advanced education equals higher growth and muni bond ratings.
Put more simply, smart communities do better.
From Municipal Market Data:
Most of America’s older and generally industrial Midwest and Eastern cities have rapidly changed during the past forty years.
For example, cities such as Minneapolis and Boston have become very attractive regions for innovative high‐tech and biomedical companies due, in large part, to the high numbers of college graduates (over 40% of residents aged 25 years and older have college degrees).
This contrasts sharply with a couple of cities (Detroit and Cleveland) where the population of residents aged 25 and older are less prone to possess a college degree. City % BA or + Moody’s S&P Fitch Minneapolis 43.3% Aaa AAA AAA Boston 42.9% Aaa AA+ AA+ Detroit 12.1% B1 BB BB Cleveland 13.7% A1 AA A+
Detroit and Cleveland have suffered a long‐standing “brain drain” (although they may possess a few suburbs where the rate of higher education is high.)