Potential Sites for Dental Practices

Welcome to The Perfect Place to Put a Practice podcast, hosted by Scott McDonald from Doctor Demographics—the leading source of demographic, psychographic, and marketing insights for professionals.

As we evaluate the current landscape, several locations across the U.S. are showing strong potential for growth and profitability. These are sites that doctors should consider, whether they are looking to purchase an existing practice or establish a new one. While I won’t be distinguishing between good and bad sites in this discussion, nor specifying which types of practices perform best in which areas, I want to provide a broad overview of demographic trends and what they mean for doctors seeking to make informed location decisions.

Understanding Population Shifts

Demographer Randal O’Toole of New Geographic Magazine provides a compelling analysis of which areas in the U.S. are experiencing growth and which are declining. Between 2021 and 2022, California, Illinois, and New York each saw a population decline of over 100,000 residents, according to recent U.S. Census Bureau estimates. Additionally, Illinois, Oregon, Pennsylvania, and West Virginia lost more than 10,000 residents each, along with 11 other states that also reported population declines.

While the total number of people lost is important, what concerns demographers most is the percentage change relative to the state’s total population. A shrinking population in certain areas is not necessarily a crisis, as some regions have historically experienced fluctuations in growth. However, looking beyond the raw numbers, we can gain deeper insights into why these shifts are occurring.

Where Is the Growth Happening?

Despite some population declines, the U.S. as a whole grew by 1.26 million people during this period. However, this growth has been highly concentrated in specific states. Texas saw an increase of 470,000 residents, followed by Florida with 416,000, North Carolina with 133,000, Georgia with 125,000, and Arizona with 94,000. South Carolina, Tennessee, and other states also experienced significant growth, with many exceeding a 1% population increase.

A growth rate above 1% is a strong indicator of economic and demographic stability, but it is crucial to differentiate between percentage growth and raw population increases. Some areas may have a high percentage increase due to a smaller base population, while others, like Texas and Florida, see substantial raw number increases due to their already large populations.

Declining Areas and the Reasons Behind Them

The states experiencing the most significant losses include New York, Illinois, Louisiana, West Virginia, Hawaii, and Oregon. Each of these states has unique factors contributing to its population decline. For instance, Hawaii, as an island state, has strict regulations that affect migration patterns. Oregon has faced rising crime rates, which may be influencing outward migration. West Virginia, known for its economic challenges, has seen residents leave in search of better financial opportunities.

At the county level, Los Angeles County lost more than 90,000 residents—the highest of any county—followed by Cook County, Illinois, with a loss of 68,000. Other major urban areas, including parts of New York City, Philadelphia, and Portland, also saw declines. While some areas of New York City, like Manhattan, experienced modest growth (17,000 residents), this was largely a rebound from the mass exodus during the pandemic.

The Best Locations for Doctors to Consider

When evaluating practice locations, it is essential to look beyond overall population numbers and consider economic stability, income levels, and property values. For example, Santa Clara County in California (home to Silicon Valley) and Wayne County in Michigan (which includes Detroit) have roughly similar population sizes, but vastly different economic conditions. Santa Clara, despite high property costs, remains an attractive location due to its affluent residents and strong job market.

Doctors should focus on areas with middle-range income levels, stable housing markets, and positive economic indicators. Counties such as Cuyahoga (Cleveland) present strong opportunities, whereas areas with high crime rates and economic stagnation, like parts of Portland, may pose greater risks despite seemingly stable population numbers.

Growth Areas Worth Watching

Several counties have shown impressive growth, particularly in states with strong economies and favorable living conditions.Maricopa County, Arizona (Phoenix), gained 57,000 residents, while Harris County, Texas (Houston), added 46,000. Counties in the Dallas metro area, including Collin and Denton, also reported substantial gains.

Most of the fastest-growing counties are located in Texas, Florida, and North Carolina—states with relatively affordable housing, business-friendly policies, and expanding job markets. Surprisingly, Riverside County in Southern California saw an increase of 21,000 residents, largely due to its more affordable housing options compared to Los Angeles.

Key Factors Influencing Practice Site Selection

Choosing the right location for a practice involves several considerations beyond population growth:

• Affordable Housing Markets: Lower housing prices can attract residents, but they must be balanced with job availability and income levels.

• Crime and Economic Stability: High crime rates can deter potential patients and lead to declining property values.

• Competition Ratios: While high-growth areas may seem attractive, an oversaturated market could reduce a practice’s profitability.

• Demographic Competition: Areas with a strong middle-class immigrant presence often provide stable patient bases and long-term growth potential.

Final Thoughts

While it is impossible to pinpoint the single best location for every doctor and practice, thinking outside the box and considering emerging growth areas can yield significant returns on investment. Immigrant populations, in particular, tend to be economically stable and tied to suburban communities, making them attractive markets for healthcare practices.

Doctors looking for strong investment opportunities should target areas with:

✅ Rising populations

✅ High homeownership rates

✅ Economic stability

✅ Low competition ratios

Additionally, crime rates in many of these growing areas are declining as new residents invest in their communities. These trends indicate sustained growth and long-term viability.

At Doctor Demographics, we offer two key reports to assist in site selection:

1. Practice Viability Reports – Assess relative risk and property values.

2. Best Sites Reports – Analyze demographic composition, ethnicity, and lifestyle factors.

You can access free samples at doctordemographics.com under the dropdown menu, where we also list pricing information. If you’d like to discuss site selection further, you can reach out at (844) 704-0499 to speak with our team.

Ultimately, making the right location decision requires solid data driven insights. At Doctor Demographics, we specialize in helping doctors interpret demographic trends to make smart strategic choices for their practices.

Thank you for listening, and we look forward to helping you find the perfect place to put your practice.