Not Just Big—Efficient: Which Cities Win by GDP per Worker
- Dennis Lee
- 1 hour ago
- 2 min read
by Dennis Lee, CEO at Market Stadium
Every city has its own economic DNA—and it’s not just about how much GDP is produced, but how efficiently it’s created.
At Market Stadium, we analyzed the Top 10 MSAs by:
📊 Total GDP – the biggest economies
💼 GDP per Employee – the most efficient workforce
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Here's what I found by comparing:
While a few cities show up in both, many do not—proving that economic scale and efficiency don’t always go hand-in-hand. That divergence might reshape how we think about real estate value and location strategy.
4 Key Takeaways for Real Estate & Location Strategy:
1. Productivity Leaders Are Not Always GDP Giants
Cities like San Jose, Austin, and Hartford don’t top the GDP charts—but they lead in GDP per employee, especially in sectors like Information, Real Estate, and Utilities.
→ In my view: These smaller MSAs might support premium rents and attract capital in niche sectors thanks to their higher economic efficiency.
2. SF, Seattle, and Boston: Intellectual Infrastructure at Work
These cities consistently rank high in Information, Professional Services, and Real Estate—both in total contribution and per-worker output.
→ Implication: Demand for high-end office, R&D, or flex lab space is likely to be structurally supported rather than purely cyclical.
3. Houston, LA, Dallas: Scale over Specialization
These metros show strong presence in Manufacturing, Wholesale, and Transportation sectors—but their per-worker productivity is more modest.
→ Likely outcome: Real estate strategies here may be better aligned with logistics, industrial, or scale-driven assets than boutique or specialized office formats.
4. New York: Diversified but Productivity-Light
NYC leads in Finance and Real Estate by volume, and spans across sectors—but underperforms in per-worker output across many industries.
→ In my opinion: Its strength lies in its ecosystem density and network effects, which still make a strong case for mixed-use and urban resilience strategies.
Conclusion
The overlap between the two charts is partial at best—and that’s the point. Don’t just follow GDP size when evaluating markets. GDP per person tells us which cities truly turn people into productivity. And that, ultimately, is what drives long-term rent growth and asset value
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Dennis Lee
CEOÂ at Market Stadium
Prev. Lionstone Investments Research Team
