Economic growth in U.S. cities is accelerating in 2025, with major shifts in where and how prosperity is taking root. The latest data highlights that economic growth is no longer confined to traditional hotspots, as cities across all sizes—large, mid-sized, and small—are driving America’s next era of innovation and expansion. Florida cities, in particular, are shining in recent moving growth rankings, reflecting their increasing appeal to both businesses and new residents.

Economic Growth in U.S. Cities: Key Metrics and Methodology

The main keyword, economic growth, is central to understanding urban transformation in the United States. Our analysis draws on official government data from 2019 through 2023, covering indicators such as GDP growth, job creation, housing expansion, export strength, and infrastructure development. Cities are ranked within three population brackets—large (over 500,000), mid-sized (250,000–500,000), and small (under 250,000)—to ensure fair comparisons.

Primary Indicators for Ranking Economic Growth

• Business Applications: New business filings, signaling entrepreneurial activity.
• Gross Domestic Product (GDP): Total value of goods and services produced.
• Median Earnings: Inflation-adjusted income for residents.
• Employment and Unemployment Rates: Workforce participation and joblessness.
• Population Growth: In-migration and demographic shifts.
• Trade-Exports: Value of exported goods.
• Educational Attainment: Share of residents with postsecondary degrees.
• Housing Units: Residential construction and inventory.
• Infrastructure: Total roadway miles and other public works.

Top Large U.S. Cities for Economic Growth

Among cities with populations above 500,000, economic growth is driven by innovation, resilience, and strategic investment. The top performers in 2025 are:

• Austin, TX: Leading with a 51% GDP surge, 12% housing growth, and a 71% jump in new business applications. Austin’s diverse economy, anchored by tech giants and the University of Texas, generated a regional GDP exceeding $248 billion in 2023. Infrastructure projects like Project Connect reinforce its long-term momentum.
• Sacramento, CA: Notable for a 166% increase in business applications and robust gains in employment and infrastructure. Programs such as the Business Solutions Center and SizeUp Sacramento empower small businesses with data and resources.
• Jacksonville, FL: Achieved a 9% population increase, 43% GDP growth, and significant export gains. Investments in airport, road, and drainage infrastructure support continued expansion, while JAXPORT remains a logistics powerhouse.
• Phoenix, AZ (including Mesa): Led infrastructure growth with a 26% increase in roadway miles and posted solid gains in GDP and earnings. Strategic land purchases and revitalization projects signal future stability.
• Fort Worth, TX: Excelled in educational attainment and exports, with steady GDP, housing, and employment growth. Expansion of university campuses downtown supports workforce development and innovation.

Mid-Sized Economic Powerhouses

Mid-sized cities are rapidly catching up, with Sun Belt metros in Arizona and Florida driving economic growth through earnings, infrastructure, and entrepreneurship. The leading cities include:

• Gilbert, AZ: Scored highest with a 32% increase in earnings and major infrastructure projects. Nearly 44% of residents hold at least a bachelor’s degree, supporting growth in tech and healthcare.
• Tampa, FL: Achieved a 38% rise in median earnings and a 43% GDP surge. Tampa’s diversified economy now extends well beyond tourism, with strong population and employment gains.
• Orlando, FL: Led in population growth (14%) and saw a 36% increase in earnings. The city’s tech, aerospace, and entertainment sectors are fueling its evolving economic profile.
• St. Petersburg, FL: Noted for a 98% jump in business applications and a 43% GDP increase. Its waterfront location and supportive policies drive entrepreneurship and trade.
• Chandler, AZ: Home to semiconductor and aerospace firms, Chandler posted strong gains in earnings and infrastructure, with regional projects enhancing connectivity.

Small Cities: New Engines of Economic Growth

Small cities are emerging as independent economic drivers, setting the pace with surging housing markets, rising incomes, and entrepreneurial momentum. The top small cities for economic growth are:

• Goodyear, AZ: Leads with rapid gains in educational attainment, housing, and employment. Strategic land development and foreign-trade zone incentives attract employers like SubZero and UPS.
• Nampa, ID: Stands out for reducing unemployment and boosting employment by 40%. Nampa’s strong fundamentals position it as a major job hub.
• Port St. Lucie, FL: Florida’s new frontier for startups, with a 108% increase in business applications. The city’s growth in housing and GDP is steady, supported by a workforce ready for expansion. Notably, Port St. Lucie leads the U.S. in new apartment construction growth, further fueling its economic momentum.
• Surprise, AZ: Ranks high in employment and GDP growth, with inclusive development driven by infrastructure and opportunity.
• Murfreesboro, TN: Delivers balanced growth in GDP, education, and jobs, making it attractive for families and businesses.

Insights on Talent, Housing, and Innovation

Steven Pedigo, Professor of Practice and Director of the LBJ Urban Lab at the University of Texas, emphasizes that workforce is the new currency of economic development. Cities investing in education, training, and upskilling are best positioned for long-term growth. Housing affordability and digital infrastructure are also key, with public-private partnerships needed to align development with workforce needs. In South Florida, the rising cost of living is driving migration to St. Lucie County, highlighting the importance of affordable housing for sustained growth.

Role of Educational Institutions in Economic Growth

Universities and community colleges act as talent pipelines and civic anchors. Their involvement in regional strategy can transform local economies, especially in mid-sized and small cities where other drivers may be limited.

Entrepreneurship and Business Applications

The surge in business applications reflects strong entrepreneurial climates. Cities that provide targeted support—such as permitting assistance, mentorship, and early capital—can convert new business filings into sustainable growth.

Impact of Remote Work and Digital Infrastructure

Remote and hybrid work are decoupling jobs from location. Cities with robust broadband, quality of life, and innovation ecosystems are attracting new residents and businesses, reshaping the economic map for all population sizes.

Frequently Asked Questions About Economic Growth in U.S. Cities

What is driving economic growth in U.S. cities in 2025?

Economic growth is being fueled by business activity, rising incomes, infrastructure upgrades, and expanding populations. Cities are focusing on innovation, workforce development, and entrepreneurship to sustain momentum.

How much has Port St. Lucie grown as an economic hub?

Port St. Lucie has seen a 108% increase in business applications, along with steady housing and GDP growth. The city is now recognized as a leading destination for startups and small businesses in Florida.

Are there differences in economic growth between large and small cities?

Yes, large cities often lead in GDP and infrastructure, while small and mid-sized cities are excelling in entrepreneurship, population growth, and housing expansion. Each size bracket has unique strengths supporting economic growth.

Can you find strong retirement communities in cities with high economic growth?

Many cities experiencing economic growth, such as Port St. Lucie, also offer a variety of 55+ communities and active adult neighborhoods. These areas benefit from new development and improved amenities.

Where are the fastest-growing cities for business startups?

Cities like Austin, Port St. Lucie, Gilbert, and St. Petersburg are leading in new business applications, making them top choices for entrepreneurs seeking supportive environments and strong economic fundamentals.

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