This Arizona city named one the nation's top 'boomtowns.' Here's why

Phoenix was named one of the nation's top boomtowns in a recent ranking by LendingTree. The study analyzed the 50 largest metropolitan areas in the U.S. across three categories: people and housing; work and earnings; and business and economy. Southern metros largely dominated the ranking, claiming e

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What is the story about?

Phoenix was named one of the nation's top boomtowns in a recent ranking by LendingTree.

The study analyzed the 50 largest metropolitan areas in the U.S. across three categories: people and housing; work and earnings; and business and economy.

Southern metros largely dominated the ranking, claiming eight of the top 10 spots. Austin, Texas, ranked No. 1.

According to Matt Schulz, chief consumer finance analyst at LendingTree, there are several reasons why Southern metro areas, in particular, are booming. A lower cost of living, pro-business policies, warmer weather and room for new residents are among the factors many of the top boomtowns share.

"A lot of people and businesses have been heading South over the past several years, and that’s created

a lot of momentum," Schulz said. "In many places, you can still find a lower cost of living, a growing population and a business climate that’s attractive to employers. Those are all things that make it easier to start and grow a business."

Conversely, many of the nation’s lowest-ranked metropolitan areas in the LendingTree report sit in northern climes, specifically in regions that have grown more slowly in population.

Here’s a breakdown of the nation’s top 10 boomtowns, where Phoenix ranked and which factors helped drive its position.

Is Phoenix a boomtown in America?

Metro Phoenix ranked sixth among the nation’s 50 largest metropolitan areas in LendingTree’s boomtown report.

The metro area performed particularly well in the work and earnings category, ranking third in the country with a score of 74.6. The category evaluated metrics such as labor force growth, unemployment rates and median earnings.

The metro area's score in the business and economy category, which evaluated real GDP and employer identification number applications, was considerably lower at 57.3. Still, it outperformed most of the nation, obtaining the fourth spot for that category's ranking.

Phoenix's lowest performance was in the people and housing category, which evaluated population growth, the percentage of the population that moved into the area and the number of housing units. With a score of 47.7, the city ranked 15th in the nation in this category, which is a relatively strong showing, but it still pulled down Phoenix's overall position in the ranking.